Utility-Scale Solar Plants
Utility-Scale Solar Plants
Business Model Description
Design, finance, and operate utility-scale PV plants (>5 MW) on agricultural or leased land, selling electricity under 15-year PPAs awarded via government auctions. Investors secure revenue through regulated tariffs and potential storage integration.
Expected Impact
Utility-scale solar PV expands clean domestic generation, reduces fossil fuel dependence, stabilizes supply in underserved regions, and cuts GHG emissions in line with Moldova’s NDC targets.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Republic of Moldova: Southern Development Region
- Republic of Moldova: Central Development Region
Sector Classification
Renewable Resources and Alternative Energy
Development need
Moldova is highly dependent on energy imports, with at least 80% of its energy demand met through gas and electricity imports, undermining energy security and the cost of living. The country’s energy generation is concentrated in the Transnistria region, which is prone to political uncertainties, further threatening energy security. (1, 2, 3)
Policy priority
Moldova has set ambitious goals to be reached in the remaning of the decade.
2025 target: 410 MW new renewables through tenders of which some have already been announced and some are in the process. Overall RES target 27%, Electricity RES target 30%, Limit greenhouse gas emissions to 68.6% of 1990 levels by 2030 (4, 5)
Gender and marginalization
Women in rural areas formally employed just 50%, vs >90% in cities face heavier energy burdens. They spend more time collecting firewood, suffer greater health risks from indoor smoke, and lack stable income or credit access to adopt clean energy.(3,9,11)
Investment opportunities introduction
Gov of Moldova has accelerated its clean energy agenda through its first competitive tenders, offering 60 MW of solar capacity and 105 MW of wind capacity, estimated to be valued at a total of $200 million. Electricity from these projects can be sold to the national grid under long-term feed-in tariffs established by Law No. 10/2016 and overseen by ANRE. (6)
Key bottlenecks introduction
Due to insufficient balancing reserves, Moldova may face constraints in integrating additional renewable energy—renewables could be curtailed or deployment limited unless balancing capacity improves. (7)
Alternative Energy
Development need
Photovoltaic power in Moldova has a technical potential of 4.65 GW. Despite a high renewable energy potential, almost 90% of electricity is generated from fossil gas and oil resources, where the share of renewables in the energy mix (solar and wind energy) stood at 4.5% in 2022. (1, 2, 3)
Policy priority
New legislative measures have been put in place to allow for the installation of solar and wind power plants on agricultural land without requiring a land-use change, further easing renewable energy adoption (Land Code No. 22/2024). (8)
Gender and marginalization
Women in Moldova face structural barriers to benefit from the alternative energy transition. Reliance on biomass exposes them to health risks, while community energy decisions often exclude women, reinforcing gender and regional inequalities. (9,11,12)
Investment opportunities introduction
Moldova’s alternative energy subsector offers strong potential driven by high import dependence and EU-aligned climate goals. Recent auctions illustrate this: in 2025, 165 MW of solar and wind were awarded via 15-year PPAs, mobilizing €190m, creating 400 jobs. A second auction will add 173 MW wind and 246 MW battery storage. (10,13,14,15)
Key bottlenecks introduction
Despite strong investor interest, there are bottlenecks in limited grid capacity and balancing reserves, which could constrain integration of new solar and wind. Regulatory reforms are still maturing, while storage frameworks remain nascent highlighted by the launch of the 2025 auction for renewables with battery systems. (10,13,14,15)
Solar Technology and Project Developers
Pipeline Opportunity
Utility-Scale Solar Plants
Design, finance, and operate utility-scale PV plants (>5 MW) on agricultural or leased land, selling electricity under 15-year PPAs awarded via government auctions. Investors secure revenue through regulated tariffs and potential storage integration.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
Renewable potential is estimated in Moldova at over 27 GW, including 20.9 and 4.6 GW of wind and solar potential, respectively. (24)
116 MW was already installed as of December 2024 and was operating in the free market and with the addition of 60MW through the 2025 tenders the total capacity for large scale solar is 176MW. (19, 23)
Moldova’s solar market holds significant growth potential, with an estimated 4.6 GW of technical capacity. Using global benchmark costs of USD 650–850 million per GW, this translates into a future investment opportunity of roughly USD 3.0–3.9 billion, far exceeding current deployment. (33)
Indicative Return
5% - 10%
A 1 kW solar system in Moldova produces **1,100–1,300 kWh annually based on location**, scaling to 4.4-5.2 GWh for a 10 MW (lower bound for large scale PV) system. (30)
The winners of the renewable energy tenders are in contract to sell each kWh at an average price of 1.1622 MDL which is around $0.07 (32) This generates annual revenue of $308K-$364K.
For utility scale the CAPEX is lower than small scale and by 2024 it has come down to $691K/MW of capacity with a 1.5% O&M. Looking at 15 years for horizon a IRR of between 6.7% and 9.5% is estimated which is in line with industry benchmarks.
Investment Timeframe
Long Term (10+ years)
The FIT contracts are for 15 years but the industry usually looks at each investment for 20 years or more. (24)
Ticket Size
USD 1 million - USD 10 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Market - Highly Regulated
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
Moldova remains 90% dependent on imported fossil fuels,exposing the country to price shocks and energy insecurity. Grid capacity remains outdated, constraining renewable integration and decarbonization. (17)
Moldova’s energy sector faces a skills gap, with limited renewable energy training, outdated curricula, and shortages of mid-level technicians. Targeted education and training are needed to build a workforce that can drive growth and support the energy transition. (37)
Gender & Marginalisation
Rural southern & northern districts experience frequent outages and weak grid coverage. Many villages near the Transnistria border face additional vulnerability, as they rely heavily on imported power from the Cuciurgan plant. (29)
Expected Development Outcome
Utility-scale PV will diversify Moldova’s energy mix, reduce fossil import dependence, and cut GHG emissions. Large projects can create stable jobs, attract foreign investment, and anchor green industrial growth.
Gender & Marginalisation
Utility-scale PV in rural south and north can diversify supply, cut reliance on Cuciurgan imports, and stabilize weak grids. New capacity reduces outages and strengthens energy equity for vulnerable districts.
Primary SDGs addressed
7.2.1 Renewable energy share in the total final energy consumption
7.b.1 Installed renewable energy-generating capacity in developing countries (in watts per capita)
7.1.2 Proportion of population with primary reliance on clean fuels and technology
Moldova’s state agency report indicates renewables reached 16.7% in 2024, up from 9.2% in 2023. (22)
As of July 2025: Installed renewable energy capacity reached 784.09 MW. (23)
30% share by 2030, as outlined in Moldova’s Integrated National Energy and Climate Plan.(23)
As of early 2025, Moldova’s installed renewable capacity reached 618 MW (238 W per capita), driven mainly by solar and wind. Under NDC 3.0 and the Integrated National Energy and Climate Plan, total capacity is targeted to exceed 1,200 MW by 2030 equal to 470 W per capita supporting the 30% renewables share goal. (24)
13.2.2 Total greenhouse gas emissions per year
Moldova emitted approximately 4.4 t CO₂e per capita, based on NDC data. (24)
Moldova commits to reduce economy-wide net GHG emissions by 75% below 1990 levels by 2030. Conditional on international support, Moldova also aims for net-zero emissions by 2050. (24)
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
Rapid addition of large PV capacity without matching grid upgrades may cause curtailments, limiting actual energy delivery.
Utility-scale PV on agricultural land may reduce arable land availability, sparking tensions with farmers and rural communities.
If PV plants are concentrated near strong grid nodes, marginalized rural districts may not benefit from improved reliability.
Large solar fields may impact soil, biodiversity, and water runoff unless mitigation measures (buffer zones, monitoring) are applied.
Gender inequality and/or marginalization risk: Women and vulnerable groups may be excluded from jobs, training, and benefit-sharing if social safeguards are not integrated.
Impact Risks
Geopolitical tensions and import reliance on equipment could delay delivery and reduce expected generation capacity.
Auctioned projects may face delays in construction, grid connection, or financing, limiting timely impact delivery.
Focus on capacity installed may overlook equity impacts, such as whether vulnerable districts gain from improved supply.
If long-term O&M is underfunded, plants may degrade quickly, reducing generation and climate benefits.
Gender inequality and/or marginalization risk: Local communities may not be consulted adequately, causing resistance to land use or exclusion from benefits.
Impact Classification
What
Utility-scale PV boosts Moldova’s RES share (16.7% in 2024 toward 30% by 2030).
Who
Communities in southern/northern districts with frequent outages are underserved. They benefit most from stable grid supply once utility-scale PV capacity is integrated.
Risk
Without parallel grid upgrades and storage, capacity may be curtailed, reducing actual delivered impact despite auctioned MWs.
Contribution
Utility-scale PV speeds renewables, deepens emission cuts, and broadens impact through energy security, reduced imports, and local jobs.
Impact Thesis
Utility-scale solar PV expands clean domestic generation, reduces fossil fuel dependence, stabilizes supply in underserved regions, and cuts GHG emissions in line with Moldova’s NDC targets.
Enabling Environment
Policy Environment
Energy security under the Moldova Growth Plan focuses on completing one new electricity transmission line and starting two more, strengthening interconnections with the EU grid to enhance reliability and reduce dependence on limited regional sources.(34)
Integrated National Energy and Climate Plan (INECP, 2025–2030). Lays out EU-aligned, detailed policy pathways for renewables, efficiency, and climate goals.(18)
Environmental Strategy 2024–2030 (Green Economy Promotion). Framework for green and circular economy development, supporting energy transition and clean growth.(40)
National Energy and Climate Plan (INECP, 2025–2030). Moldova’s newest energy transition framework: 30% renewables by 2030, primary energy ≤2,949 ktoe, GHG cuts of 68.5–88% vs 1990. (18)
EU–Moldova Association Agreement (2014, ongoing). Drives alignment with EU energy acquis, requiring renewable support, prosumer rules, and market reform. (38)
Financial Environment
Financial incentives: MoSEFF (€42m) credit lines through local banks finance large renewable projects, backed by EBRD/EU technical support, improving affordability of solar PV investment. (28)
Fiscal incentives: Land Code Amendment No. 22/2024 exempts solar/wind projects on agricultural land from requiring land-use change, easing site acquisition and reducing transaction costs for utility-scale PV. (26)
Other incentives: Auction-based PPAs provide predictable 15-year revenues, reducing market risks. Land Code reforms ease site access for projects. IFIs and EU programs offer subsidized infrastructure, technical assistance, and grid-connection support for large-scale solar plants.
Regulatory Environment
Law No. 10/2016 on Promotion of Renewable Energy. Establishes RES support schemes, prosumer rights, and ANRE oversight. Foundation for Moldova’s solar PV deployment. (25)
Land Code Amendment No. 22/2024. Allows solar and wind projects on agricultural land without land-use change, easing site acquisition for PV projects. (26)"
Government Decision on Renewable Auctions (2023–25). Framework for competitive tenders, e.g., 2025 auction awarding 165 MW solar/wind under 15-year PPAs. Expands utility-scale PV investment. (27)
Marketplace Participants
Private Sector
Alliance for Energy Efficiency and Renewables (AEER), Chamber of Commerce and Industry of Moldova (CCI), Association of Wind and Solar Energy Producers of Moldova (APEM), Association of Banks of Moldova / Moldovan Banking Sector
Government
Ministry of Energy, ANRE (National Energy Regulatory Agency) regulates tariffs and licenses. CNED (National Centre for Sustainable Energy Development) coordinates incentives for renewable adoption.
Multilaterals
EBRD / EU Delegation to Moldova – Provide concessional financing, technical assistance, and credit lines for solar. World Bank, IFC. (28)
Target Locations
Republic of Moldova: Southern Development Region
Republic of Moldova: Central Development Region
References
- (1) International Energy Agency (IEA). 2022. Moldova 2022 Energy Policy Review. https://iea.blob.core.windows.net/assets/dc881e93-9f82-4072-b8b4-a0d00a487f59/Moldova2022.pdf
- (2) Government of the Republic of Moldova. 2022. National Development Strategy Moldova 2030. https://faolex.fao.org/docs/pdf/mol223409.pdf
- (3) World Bank. 2023. Country Private Sector Diagnostic – Moldova. https://www.ifc.org/content/dam/ifc/doc/2023-delta/cpsd-moldova-en.pdf
- (4) Ministry of Energy of the Republic of Moldova. 2024. The integrated national energy and climate plan (PNIEC) of the Republic of Moldova for the period 2025-2030 https://particip.gov.md/ro/document/stages/*/11984
- (5) Ministry of Energy of the Republic of Moldova. Empowering Citizens to Go Green with Renewables Self-Consumption (Presentation) https://www.energy-community.org/dam/jcr:a0b0b6e9-732b-4357-b854-e8cbe82d6762/Ministry%20of%20Energy,%20Government%20of%20the%20Republic%20of%20Moldova,%20Empowering%20citizens%20to%20go%20green%20with%20renewables%20self-consumption.pdf
- (6) PV Europe. 2025. Moldova pushes investment in renewables – first tender launched https://www.pveurope.eu/markets/eastern-europe-moldova-pushes-investment-renewables-first-tender-launched
- (7) United States Agency for International Development (USAID). 2023. PV Integration in the Moldovan Power System: Moldova Energy Security Activity https://energie.gov.md/sites/default/files/report_on_res_self-consumption_in_md_final.pdf
- (8) CNED. 2024. Moldova introduces Facturarea Netă: New support for prosumers and green energy. https://cned.gov.md/ro/content/nou-mecanism-de-sprijin-pentru-prosumatori-facturarea-neta-stimuleaza-utilizarea-energiei
- (9) UNDP Moldova. 2024. Women in rural Moldova seek equal income opportunities. https://www.undp.org/moldova/blog/women-rural-moldova-seek-equal-income-opportunities
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- (16) Invest Maldives. 2025. Record €190 Million in Moldova’s Debut Green Energy Tender. https://invest.gov.md/en/record-e190-million-in-moldovas-debut-green-energy-tender/
- (17) World Bank. 2023. Country Private Sector Diagnostic – Moldova. https://www.ifc.org/content/dam/ifc/doc/2023-delta/cpsd-moldova-en.pdf
- (18) Ministry of Energy of the Republic of Moldova. 2024. The integrated national energy and climate plan (PNIEC) of the Republic of Moldova for the period 2025-2030 https://particip.gov.md/ro/document/stages/*/11984
- (19) International Energy Agency. 2020. Capital costs of utility-scale solar PV in selected emerging economies. https://www.iea.org/data-and-statistics/charts/capital-costs-of-utility-scale-solar-pv-in-selected-emerging-economies
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- (25) Government of the Republic of Moldova. 2024. Law No. 10/2016 on Promoting Renewable Energy (updated 2023) https://old.cancelaria.gov.md/sites/default/files/document/attachments/763-men-2024.pdf
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- (32) Taiyang News. 2025. Moldova Announces Winners Of Country’s 1st RE Auction. https://taiyangnews.info/markets/moldova-1st-large-scale-renewable-energy-auction-results
- (33) International Renewable Energy Agency (IRENA). 2025. Renewable Power Generation Costs in 2024. https://www.rinnovabili.it/wp-content/uploads/2025/07/IRENA-RENEWABLE-POWER-GENERATION-COSTS-IN-2024.pdf
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- (37) ILO. 2025. Skills for an environmentally sustainable transition in Moldova. https://www.ilo.org/projects-and-partnerships/projects/skills-environmentally-sustainable-transition-moldova
- (38) EU Lex. 2023. Association Agreement with Moldova. https://eur-lex.europa.eu/EN/legal-content/summary/association-agreement-with-moldova.html
- (39) PV Magazine. 2025. Moldova maintains rejection of four bids from renewables auction. https://www.pv-magazine.com/2025/04/23/moldova-maintains-rejection-of-four-bids-from-renewables-auction/.
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