Moldova's Energy Crisis: A Race Against Time to Keep the Lights On

Moldova, a small landlocked country in Eastern Europe, is facing a severe energy crisis following Russia's decision to cut off natural gas supplies. The country, which relies heavily on Russian energy, is now scrambling to find alternative sources and keep its lights on. The European Union (EU) has stepped in to provide emergency support, but time is running out for Moldova to secure a long-term solution.

The energy crisis in Moldova is a direct consequence of Russia's decision to halt gas supplies to the country in early 2024. This move has left the Moldovan energy system in a precarious position, with the Moldavskaya GRES (MGRES) power plant in the Transnistrian region switching to coal and drastically reducing its electricity output. The power grid operator has had to ration electricity, causing daily blackouts lasting between four and eight hours. The situation has been particularly dire in the Transnistrian region, where more than 350,000 people have been left without energy supplies, facing a humanitarian crisis.

The EU has responded to the crisis by providing €64 million in non-repayable aid to Moldova, including €20 million to alleviate the energy crisis in the Transnistrian region. This funding has enabled Moldova to purchase around 3 million cubic metres of gas per day from European markets and supply it to the separatist region, covering approximately 50% of its demand. Additionally, an additional €10 million from the EU funds will subsidise electricity imports – mainly from Romania – for right-bank Moldova, while the remaining €34 million will support the Moldovan budget.

However, this temporary solution is not enough to address the long-term challenges facing Moldova's energy sector. The country needs to diversify its energy sources and reduce its dependence on Russian supplies. To achieve this, Moldova is working with the EU to implement a comprehensive strategy for energy independence and resilience, which aims to decouple the country from Russian energy supplies and fully integrate it into the EU energy market.

The strategy, which will unfold in three steps, aims to tackle both immediate needs and long-term challenges. The first step, announced in January 2025, involved a €30 million EU emergency support package. The second step, to be implemented by mid-April, will see a further €100 million in financial support provided by the EU to alleviate higher energy bills for consumers on the Right Bank. The third step will focus on financing actions and investments in Moldova's energy resilience and independence, as well as supporting lower energy costs for all Moldovans.

The Comprehensive Energy Support Package is another demonstration of the EU's strong support for Moldova. When adopted by the co-legislators, the Moldova Growth Plan should provide before the summer a first tranche to boost the county's economy and to support its EU accession. The plan includes a reform agenda to be implemented until the end of 2026, focusing on improving energy sector governance, enhancing energy security, and promoting sustainable economic growth.

In conclusion, Moldova's energy crisis is a race against time to keep the lights on and secure a long-term solution. The EU's emergency support has provided a temporary reprieve, but the country must now focus on implementing a comprehensive strategy for energy independence and resilience. By working with the EU and diversifying its energy sources, Moldova can reduce its dependence on Russian supplies and ensure a sustainable energy future for its citizens.