The Cabinet of Ministers approved today, at the initiative of the Ministry of Energy, the draft law on innovative testing spaces in the field of energy regulation, according to a press release from the Ministry of Energy. The project allows companies in the energy sector to test innovative solutions with derogations from certain provisions of existing legislation, including in the fiscal domain. The “sandboxes” will offer a flexible legal framework for research and development, contributing to the optimization of electricity storage and distribution, as well as promoting renewable energy in the Republic of Moldova. Additionally, the project aims to support the achievement of sustainable development goals in the energy sector, such as increasing the volume of investments in the energy efficiency sector, raising the share of renewable energy in final gross consumption to 27% by 2030, strengthening energy security, and achieving climate neutrality by 2025. Innovative testing projects may include activities such as the development of flexibility services for network stability, reducing environmental impact, developing new capacity taxation approaches to influence consumer behavior, integrating energy storage into the energy sector, and managing local energy communities. The innovative testing space will be authorized for a period of up to seven years, with the possibility of justified extension for another maximum period of five years. The draft law on establishing the legal framework for the sandbox successfully completed an extensive consultation process with the business environment, carried out during 2023-2024. The platform of the Economic Council to the Prime Minister of the Republic of Moldova hosted constructive debates on the concept and the draft law, facilitating open dialogue between the leadership of the Ministry, the Secretariat of the Economic Council, and its members. The significant contribution of the business community helped develop a legal framework adapted to the needs and realities of the energy sector. Successful implementation of the sandbox concept will create a favorable environment for testing innovative solutions and will stimulate the country’s economic growth. The Republic of Moldova will be the first country where innovative testing spaces in the field of energy regulation could be initiated. The draft law is to be adopted by Parliament.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.