Support mechanisms for renewable energy producers of Moldova will become more flexible and quotas for the net billing mechanism will be abolished - the Ministry of Energy
This was announced by the Ministry of Energy, which published for public consultations a draft government decree on the approval of capacity limits, maximum quotas, and capacity categories in the field of electricity from renewable sources, valid until December 31, 2030. The document sets maximum quotas by category of power plants that can benefit from three support mechanisms: net billing, fixed tariff, and fixed price (auctions) applied in Moldova. Thus, the total capacity of power plants operating on renewable energy sources and receiving support will be 265 MW, of which 95 MW will be under a fixed tariff regime, 170 MW under a fixed price regime, subject to the installation of 44 MWh of battery storage capacity, and the quota for net billing will be abolished. Previously, quotas for the net billing mechanism were 100 MW and were distributed among different types of consumers – households, government agencies, and businesses – but permits have already been issued for approximately 125 MW. According to the proposed amendments, quotas for different types of consumers will not be allocated, which will allow for flexible and effective application of the net billing mechanism in accordance with the principles of market liberalization and the promotion of decentralized electricity production from renewable sources. Thus, in the short and medium term, investors will benefit from a more flexible structure that will allow for faster implementation of renewable energy projects, which will directly reduce energy consumption costs. It is estimated that each MW of installed photovoltaic capacity generates approximately 1,200,000 kWh per year, which, at an average tariff of approximately 4 lei/kWh, means savings of approximately 4.5 million lei per year for each MW installed. The 4 MW already installed provide annual savings of around 18 million lei, and once the planned 17 MW are commissioned, the total budget savings could exceed 94 million lei per year. The document prepared by the Ministry of Energy not only sets simple quantitative quotas, but also explicitly provides for accompanying support mechanisms that are essential for attracting investment. The quotas allocated to the fixed tariff mechanism and the fixed price mechanism are accompanied by contractual guarantees for the purchase of energy produced by the Central Electricity Supplier for a period of 15 years, which provides investors with a stable and predictable basis for a return on their investment on competitive and transparent terms. Thus, the project provides for a quota of 95 MW for the fixed tariff support scheme, including direct combustion cogeneration power plants – 55 MW, and biogas power plants – 40 MW. Under the fixed price support scheme, a quota of 170 MW is provided for wind power plants, subject to the installation of energy storage facilities with a capacity of at least 22 MW/44 MWh. These will be put up for a second auction for large producers in the fall. The Ministry of Energy recalled that Moldova has three support mechanisms for green energy producers, which guarantee the purchase of surplus energy supplied to the grid and thus help them recoup their investments: “net billing,” which replaced the “net metering” mechanism on January 1, 2024, applies to small producers with installations intended for their own consumption; a fixed tariff for 15 years for parks and installations with a capacity of up to 1 MW of photovoltaic or 4 MW of wind power; a fixed price, also valid for 15 years, for parks and installations with a capacity of more than 1 MW of photovoltaic or 4 MW of wind power, whose capacity is allocated by auction. // 13.08.2025 – InfoMarket.
