An article in Logos Press titled “145 Moldovan Power Plants Were Shut Down Today” and similar reports in other Moldovan media outlets sparked widespread public reaction. This prompted the Ministry of Energy to issue a statement clarifying the situation that arose last Sunday in Moldova’s energy market.
The ministry noted that “in recent days, reports have appeared in the media suggesting that new rules governing the electricity market and the emergence of very low or negative prices could jeopardize investments in renewable energy sources in the Republic of Moldova. The Ministry of Energy considers it necessary to provide some clarifications.”
Imbalance Between Production and Consumption
First and foremost, the Republic of Moldova does not produce more energy than it consumes. Situations where a surplus of energy arises are limited to specific time intervals during the day when consumption is lower and photovoltaic installations, thanks to favorable weather conditions, are operating at maximum capacity.
Overall, the power system continues to import energy to meet consumption, and demand remains high in the evening hours.
It is precisely this difference between daytime generation and peak-hour consumption that explains why investments in battery storage are becoming increasingly important. Energy generated during off-peak hours can be stored and supplied during periods when consumption is higher and energy has greater economic value.
In the market operated by OPEM, following amendments to the Electricity Market Rules, demand for supplied energy has begun to rise, including during peak consumption hours. This is evident from an analysis of the aggregated curves published on OPEM, which provides investors with the opportunity to build business models based on storage and flexibility.
However, it was found that in some trading intervals, not all of the offered energy volumes were sold, as the asking price was higher than the price offered by buyers.
Second, the possibility of very low or negative prices is not unique to the Republic of Moldova. This is how all modern EU energy markets operate, particularly those with a large number of renewable energy producers—especially photovoltaic plants—which have a specific generation curve.
Prices set on an organized market send a clear economic signal to market participants about the need to adjust their market position: when there is a surplus of electricity, it must be stored for use during peak demand hours, consumed, or exported.
Such situations are common in countries with a much higher share of renewable energy than Moldova. Greece, Spain, Germany, and Romania periodically face temporary constraints on renewable energy generation, alongside accelerated investments in batteries and other flexibility solutions. This is precisely the path that all of Europe is taking today.
TheGovernment Is Promoting BESS
The Ministry understands the concerns of producers in the free market and believes that the sector’s development must be accompanied by tools that allow for the most efficient use of the energy produced. For this reason, the government has adopted and is promoting an unprecedented set of measures to stimulate investment in energy storage systems.
These measures include tax incentives for investments in batteries, the removal of bureaucratic barriers and the streamlining of permitting procedures, including the elimination of the requirement to develop detailed urban development plans in cases provided for by law.
In parallel, a new loan guarantee instrument for energy storage projects is being developed in collaboration with the Enterprise Development Organization.
How Investors Are Responding
Investors have already picked up on the market signals. Currently, approximately 330 MWh of storage capacity has been installed in the Republic of Moldova, and by the end of this year, that figure could reach about 600 MWh.
This pace confirms that the market is responding to the new conditions and that investors are adapting their projects to capitalize on energy generated during off-peak hours.
Energy storage benefits everyone. Generators can sell their energy during peak consumption hours and recoup their investments, while the power system reduces the need for imports during peak periods.
Ultimately, this development contributes both to strengthening the Republic of Moldova’s energy security and to maintaining competitive prices for consumers.
Market trends will continue to be the primary indicator of the need to develop storage capacity. As investment in batteries grows and barriers to renewable energy production decrease, economic signals will naturally indicate when storage capacity becomes sufficient to meet the needs of the power system.
Thus, future investments will be determined by actual demand and market opportunities, in accordance with the principles of a competitive economy and efficient use of resources.
Investments in traditional energy sources will continue
At the same time, Moldova continues to invest in infrastructure that will enable the integration of ever-increasing volumes of renewable energy.
The commissioning of the 400-kV Vulcănești–Chișinău overhead power line, the construction of the interregional Bălți–Suceava line, the development of new energy storage capacity, and the integration of the Republic of Moldova’s market with EU markets—are complementary projects pursuing the same goal: a more secure, competitive, and less import-dependent energy system.
The transformation currently underway in the energy sector brings new challenges, but also new opportunities. The role of the authorities is to establish the necessary rules and conditions to sustain private investment and maximize the use of renewable energy for the benefit of the economy and consumers, according to the Ministry of Energy.
