The report “Creating Functional Energy Markets in the Republic of Moldova,” developed by the Organisation for Economic Co-operation and Development (OECD) in coordination with the Ministry of Energy and energy enterprises, was presented today in Chisinau. The event was also attended by OECD Deputy Secretary-General František Ružička, who welcomed the progress made by the Republic of Moldova, as well as the important role of state-owned enterprise reform in creating functional energy markets.

The report contains a comprehensive analysis of the sector’s evolution, the technical and policy challenges in the field, policy options for developing a market-oriented energy system, as well as improving the governance of state-owned enterprises in the sector. The document was developed with financial support from the Czech Republic and Romania.

“This report comes at a particularly important moment for the Republic of Moldova, which is advancing on the path of European integration, with the energy sector playing a central role in this transformation. The OECD analysis provides valuable insights and recommendations on the importance of improving the governance of state-owned enterprises, ensuring professional and independent boards of directors, and increasing transparency across the sector. These improvements are essential for attracting investment, improving operational performance, and facilitating access to sustainable financing,” said Minister of Energy Dorin Junghietu.

Among the OECD’s policy recommendations are the reform of corporate governance in state-owned enterprises, strengthening competition and market structure, attracting investment in network infrastructure and renewable energy, enhancing the capacity of the regulatory authority, optimizing energy demand and improving energy efficiency, as well as deepening integration into the EU’s regional energy markets.

The report notes that the assets of state-owned enterprises amount to approximately 10% of GDP, while companies in the energy sector generate around 43% of the profits produced by the 167 state-owned enterprises. Thus, the OECD provides a series of recommendations to improve corporate governance, including formalizing the state ownership function, monitoring risks and improving oversight, increasing board independence, and defining robust criteria for classification in the screening process to decide on privatization or retention under state ownership.

The study can be accessed here: https://energie.gov.md/ro/content/crearea-unor-piete-energetice-functionale-republica-moldova-oecd-romana-pdf