Improving Moldova's energy infrastructure

By Owen Armentrout

October 17, 2025

Featured on The Borgen Project's Blog

Street lamps light up the road in Chișinău, Moldova. Source: Nicolae Casir

Moldova has been attempting to cultivate new means of energy diversification for years, and they are finally beginning to make significant progress.  

History 

In October of 2022, Russia’s state-owned gas corporation, Gazprom, began reducing exports of gas to Moldova by 30%, claiming that it was a consequence of Ukraine refusing to allow large volumes of gas to be transported through the Sochranivka station, according to the OSW Centre for Eastern Studies. 

Then, in December 2022, Moldova's Deputy Prime Minister Andrei Spinu said that the state-owned firm Moldovagaz would purchase 100 million cubic meters of gas from another state-owned enterprise: Energocom. This decision was made in order to stray away from Russian dependence, according to CNBC.

In conjunction, Moldova also ceased all imports of Russian gas that same month. Although in March 2023, Moldova changed its tune, deciding to resume business with Gazprom, according to Reuters.

However, this didn’t last long. 

According to Reuters, in October 2023, Moldova’s Energy Minister Victor Parlicov stated that much of Moldova would no longer purchase gas from the Russian energy giant. 

That being said, Transnistria, a Russian-backed separatist region within Moldova, continued to receive gas through all of this by way of a piped route through Ukraine. Russia had been sending this gas virtually free of charge. It was only on January 1^st, 2025, that these imports came to a halt after Ukraine abstained from renewing the deal with Russia, which made this supply plausible, according to CNN.

This is important because while Moldova had refused to purchase Russian gas, much of its electricity was purchased from Transnistria because it houses the Cuciurgan Power Station, the largest of its kind in Moldova. According to the International Monetary Fund, Moldova relies on Transnistria for around 70-80% of its electricity.

Moldova’s Ministry of Energy said that in 2024, only 16.7% of electricity was generated by renewable resources.

So where does this leave us?  

Improvements 

In the last 10 months, Moldova has made considerable progress in regard to updating their infrastructure. Renewable mediums of energy are on the rise, and diversification strategies have been fostered; deals have been made, and funding has been secured.  

But not without a few hiccups.  

In January, when the Trump administration decided to freeze funding for USAID programs, Moldova lost approximately $300 million, which had previously been allocated for energy projects, according to Deutsche Welle.

But, in September, the United States approved funding for the Strășeni-Gutinaș transmission line; one of several projects which was supposed to be funded with the aforementioned USAID disbursements. According to the U.S. Embassy in Moldova, it’s a “$130 million initiative that will provide opportunities for U.S. businesses, strengthen Moldova’s electric grid, and enhance Moldova’s energy security. When complete, the project will increase Moldova’s energy independence by ensuring a reliable electricity supply from European markets.” 

In February, the European Parliament said that it had approved a Reform and Growth facility for Moldova, totaling over $2.1 billion dollars. The facility is comprised of more than $600 million from grants (over $445 million of which is non-repayable support), as well as over $1.7 billion in concessional loans.  

Payments will be distributed over the course of two years. In 2025 alone, nearly $290 million will be allocated to help ensure energy security; additionally, almost $70 million will go towards similar efforts in Transnistria, according to the European Commission. 

Furthermore, in July, the European Investment Bank said it had granted Moldova a loan of more than $165 million to improve district heating in Chisinau. 

But it doesn’t stop there.  

On September 1^st, Moldova replaced Moldovagaz as the official gas supplier, instead opting to go with Energocom for a period of three years, according to Cotidianul. For context, 50% of Moldovagaz is controlled by Gazprom, according to Reuters.  

Moreover, according to Moldova’s Ministry of Energy, a new thermal power plant in Chisinau will supply an electrical capacity of 250 MW, thermal capacity of 180 MW, and a thermal energy storage facility with a capacity of 1,200 MWh; construction is projected to be complete by 2030 with funding provided by the World Bank.

Although Moldova is also opening the door for more means of renewable energy. 

According to Moldova’s Ministry of Energy, in August, the Cabinet of Ministers approved the auction results for a series of wind and solar farms, which would produce 105 MW and 60 MW, respectively. And as of September, solar grids are online, according to PV Magazine.

Closing remarks 

Moldova may have taken years to distance itself from Russian energy influence, but it’s finally paying off, and the country is strengthening its ties with other European nations. Only time will tell if their pursuits can remain manageable in the next decade.