In-Depth Review of the Energy Efficiency Policy of MOLDOVA ENERGY CHARTER SECRETARIAT 2015 In-Depth Review of the Energy Efficiency Policy of MOLDOVA ENERGY CHARTER SECRETARIAT 2015 ENERGY CHARTER SECRETARIAT 2015 DISCLAIMER Information contained in this work has been obtained from sources believed to be reliable. However, neither the Energy Charter Secretariat nor the work’s author guarantees the accuracy or completeness of any information published herein, and neither the Energy Charter Secretariat nor the work’s author shall be responsible for any losses or damages arising from the use of this information or from any errors or omissions therein. This work is published on the understanding that the Energy Charter Secretariat and the work’s author supply the information but do not attempt to render legal or other professional services. This study is published without prejudice to the position of Contracting Parties/Signatories of the Energy Charter Treaty or to their rights or obligations under the Energy Charter Treaty or any other international investment agreement. This review report has been prepared by the Energy Charter Secretariat in cooperation with the Moldavian Energy Efficiency Agency and Ms. Natalia Timofte, Institute of Power Engineering of the Academy of Science of Moldova. The peer review team was composed of officials from countries that are Parties to the PEEREA: Mr. Eduard Jambor from Slovak Innovation and Energy Agency and Mr. Manuel Casquito from Portuguese Energy Agency Adene. The team also included Mr. Steivan Defilla, Director and Ms Bilyana Chobanova, Senior expert at the Energy Charter Secretariat, supported by Ms. Natalia Timofte as local expert to the Secretariat. © Energy Charter Secretariat, 2015 Boulevard de la Woluwe, 56 B-1200 Brussels, Belgium ISBN 978-905948-176-3 (English, paperback) ISBN 978-905948-177-0 (English, pdf) Dépôt number: D/2015/7850/4 The reproduction of this work, save where otherwise stated, is authorised, provided the source is acknowledged. All rights are otherwise reserved. Layout Design and Prepress: Diana Spotinova for Spotinov Print Ltd. Printed by Spotinov Print Ltd. Photo on the Cover: Soroca Fortress Source: provided by the Energy Efficiency Agency of Moldova Table of Contents In-Depth Review of the Energy Efficiency Policy of Moldova Table of Contents Executive Summary ......................................................................................................................................................................................................................................10 Краткое изложение ...................................................................................................................................................................................................................................18 Background .............................................................................................................................................................................................................................................................26 Brief country overview ..........................................................................................................................................................................................................................26 Economic background ...........................................................................................................................................................................................................................26 Energy supply and demand ...........................................................................................................................................................................................................28 Energy intensity ...............................................................................................................................................................................................................................................37 Electricity and heat generation capacity ........................................................................................................................................................................39 Electricity prices (households and industry) ................................................................................................................................................................49 Energy and energy efficiency strategy and legislation .......................................................................................................................56 Background ...........................................................................................................................................................................................................................................................56 Policy goals and targets .........................................................................................................................................................................................................................56 Institutional framework ..........................................................................................................................................................................................................................58 Legislative framework ..............................................................................................................................................................................................................................60 Government programmes and action plans .............................................................................................................................................................64 Energy efficiency policies and their implementation ..............................................................................................................................72 Electricity and heating sectors ......................................................................................................................................................................................................72 Industry ......................................................................................................................................................................................................................................................................78 Buildings sector (residential and public) ...........................................................................................................................................................................89 Lighting and energy-using products ....................................................................................................................................................................................98 Financing energy efficiency and renewable energy ..............................................................................................................................102 Renewable energy policy ................................................................................................................................................................................................................112 Strategic and legal background ...............................................................................................................................................................................................112 Renewable energy potential .......................................................................................................................................................................................................120 Renewable energy installed capacity and market share ...........................................................................................................................120 Environmental policies, related to energy efficiency .........................................................................................................................126 Assessment of progress and recommendations ..........................................................................................................................................132 4 Table of Contents Annex I: Basic economic and primary energy data .................................................................................................................................138 Annex II: EU-MD Association Agreement: energy efficiency and renewable energy implementation ...................................................................................................................................146 Annex III: MoSEFF: Eligible project types ..............................................................................................................................................................150 Annex IV: Implementation in 2013 and 2014 of the mid-term Expenditure Strategy for the energy sector of Moldova. .............................................................................154 Annex V: List of references ............................................................................................................................................................................................................162 Annex VI: List of institutions and stakeholders met during the In-Depth Energy Efficiency Review Mission .......................................................................................................................170