Representatives of business associations welcome the idea of launching innovation test centers in the energy sector, known in English as sandboxes, which would open up new investment opportunities and speed up the implementation of various innovative ideas. The first draft of the concept was discussed on Wednesday, November 22, by Energy Minister Victor Parlicov with business associations during a meeting in partnership with the Economic Council under the Prime Minister of the Republic of Moldova and with the support of UNDP Moldova.

Minister Victor Parlicov explained that the initiative is part of the country's commitment to achieve zero net carbon emissions by 2050 and is part of efforts to digitalize the energy sector. "Several countries have set out to decarbonize their economies, only now it is hard to predict which technologies will lead to this goal. These technologies are at the research or testing stage, which is why it is important that the speed at which an initiative becomes a commercial product is accelerated in Moldova as well," the official added.

The draft Government Decision is in the final stages of finalization, it is elaborated with the support of UNDP Moldova. The document will contain derogations as exceptions from the current regulatory framework. For example, the smart meter testing project and the subsequent application of differentiated electricity tariffs could be eligible for the sandbox. But each initiative is expected to be tackled individually, with a separate government decree being issued for a specific period of time and purpose.

Business representatives inquired about the criteria for selecting projects to be exempted and expressed the view that the criteria should be clearly formulated, and then the state representatives should ensure control and monitoring.

A number of developed countries have introduced or are in the process of adopting regulatory frameworks for energy innovation test centers, including Austria, Denmark, Germany, France, the Netherlands, France, Germany, Lithuania, Denmark, Austria, Lithuania, and the Netherlands. According to the first concept put out for public consultation, regulatory sandbox could be accepted if the following conditions are met:

1. The proposed project is in the public interest, can contribute to increasing the volumes of green grid-integrated energy, storage or other solutions for storing surplus renewable energy,

2. The approval of the initiative and implementation of the project are not contrary to Energy Community regulations, and

3. if the public interest outweighs the possible consequences of the interference for which the exemption is made.

The UNDP support is provided under the project "Strengthening Resilient Development in Moldova through Crisis Anticipation and Prevention and Inclusive Recovery", which will run from 2023-2024, financed through the UNDP Governance, Peacebuilding, Crisis and Resilience Fund, thanks to contributions from Denmark, Luxembourg, Republic of Korea and Sweden.