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Detail – Energy Country Profile

The Russian invasion of Ukraine weighs on Moldova's PV sector

Insecurities in Investor circles, the fall out of the primary steel producer Ukraine, the high number of refugees, the not-yet synchronized grid, and the old energy infrastructure are only some of the challenges the country faces in its clean energy transition. The Russian invasion of Ukraine has already had a significant impact on the PV sector in the surrounding region and thus also in Moldova. Yet the government remains firmly committed to renewable energy despite the current difficulties.

The Russian invasion of Ukraine has already had a significant impact on the PV sector in the surrounding region, and thus also in Moldova.

PAS, a pro-EU party, won an absolute majority in the 2021 elections. Its rise has triggered a new, unprecedented boom in the Moldovan PV sector.

The ongoing military conflicts have created uncertainty among potential investors, both internationally and locally. In addition, Ukraine, a regional powerhouse for industries such as steel production, has played an essential role in the regional PV sector. This development comes on top of the pandemic-related increase in logistics and raw material costs. Since the pandemic, companies in the region have reported problems with deliveries from China.

In addition, little has been done to modernize energy infrastructure in Moldova since independence, which is now affecting the development of solar energy. 

In this context, synchronization with the European grid would play an important role. The Ukrainian and Moldovan systems operate in isolation from the Russian grid. Since 24 February, the day before the Russian invasion began, a test exercise showed that Moldova would be ready to connect to the European Network of Transmission System Operators for Electricity (ENTSO-E). Such investments come at a high cost, and Moldova has the highest proportion of refugees in the local population, at around 4%. In Poland, Hungary, and Romania, the share is below 2%. This puts a strain on public finances.

It has been reported from government circles that the government remains firmly committed to renewable energy despite the current difficulties.

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