Financial guarantee unlocks 109 MW for renewables in Moldova

Moldova’s government says developers have returned 30 grid connection permits for renewable energy projects since it introduced a financial guarantee scheme aimed at freeing up network capacity for viable investments.

More than 109 MW of grid capacity for renewable energy projects has been released back to transmission and distribution operators in Moldova, according to figures from the country’s Ministry of Energy.

The returned capacity follows the introduction of a financial guarantee during the issuance of grid connection permits for renewables power plants larger than 200 kW, mandated by the government in February.

The legislation stipulates that the financial guarantee will only be reimbursed to a developer if the power plant is put into operation within the agreed time frame. If the power plant is not operational on time, the financial guarantee is retained by the network operator for maintenance works.

When the legislation was introduced, holders of connection permits whose term was extended until the end of June were given the opportunity to voluntarily renounce the connection permit or be subject to a fee of 50% to 70% of the financial guarantees if their project was not realized on time.

As a result, 30 grid connection permits were released by the end of last month. Figures shared by the ministry reveal two permits with a capacity of 64.09 MW were returned to Moldelectrica, while 16 permits totaling 36.6 MW were released to Premier Energy Distribution and 12 permits totaling 8.55 MW were given back to SA RED Nord.

Moldovan Energy Minister Dorin Junghietu said that the introduction of a financial guarantee has been “essential for unlocking network capacity, allowing for the rapid and efficient implementation of green energy projects.”

In a separate legislative decision, the Moldovan government has amended laws concerning prosumers with solar facilities used for self-consumption installed before Jan. 1, 2024.

Under the amendment, prosumers that obtained connection permits for their solar installation by Dec. 31, 2023 – before the introduction of a net billing mechanism in Moldova – can now be fully remunerated for all electricity they inject back into the grid, up to a maximum of 200 kW. Previous legislation used a retroactively recalculated ceiling to determine remuneration.

The Ministry of Energy said the change impacts around 4 MW of installed capacity and “restores fairness for investors who have acted in accordance with the law and provides stability to those who actively contribute to the energy transition.” 

Moldova’s first renewables auction, aiming to procure 60 MW of solar and 105 MW of wind, was announced in 2024. In April of this year, the Ministry of Energy revealed the auction was oversubscribed, receiving 42 bids in total.

Figures from the International Renewable Energy Agency (IRENA) show that Moldova had 344 MW of cumulative installed solar capacity by the end of 2024.