Italy, through the United Nations Development Programme (UNDP), is contributing €10 million to promote energy efficiency and the digitalization of the energy and social protection sectors. This funding adds to the €10 million allocated in November 2023.

“This project is extremely important, particularly as the entire country works to improve energy efficiency. We thank the Government of Italy for all the assistance provided to the citizens of the Republic of Moldova, and UNDP for implementing the project,” stated Dorin Recean, Prime Minister of the Republic of Moldova.

“Energy blackmail is one of the tools of hybrid warfare, used by those who refuse to accept the free choices of Moldova’s citizens to destabilize the country and delay its European Union accession process. This blackmail has not and will not succeed. The Government of Moldova is advancing EU accession negotiations at a rapid pace. In partnership with the Government of Moldova, we are signing an agreement today with UNDP, under which Italy, in a spirit of friendship and solidarity, contributes an additional €10 million to help vulnerable groups in Moldova have lower electricity bills and easier access to social services. Italy will continue to support a democratic and European Moldova for a peaceful and prosperous future,” stated Lorenzo Tomassoni, Ambassador of Italy to Moldova.

“Italy, as a development partner, remains committed to working with the Republic of Moldova through its partnership with UNDP in the energy sector, contributing to ongoing efforts to enhance resilience and efficiency. Beyond the energy sector, under the auspices of the Italian Embassy, we collaborate with national institutions, international organizations, and civil society, supporting key areas such as social protection, education, health, clean water, and sanitation. By sharing technical expertise and working with local partners, we continue to develop practical solutions to build capacity and support sustainable initiatives aligned with the country’s priorities,” noted Pietro Pipi, Head of the Kyiv Regional Office for Ukraine and Moldova, Italian Agency for Development Cooperation.

“We value Italy’s additional contribution to UNDP Moldova, which will strengthen our ongoing efforts to digitalize the energy sector, offering greater predictability for consumers and improving sector governance. At the same time, by integrating the Energy Vulnerability Reduction Fund’s approach into the national social protection system, we aim to ensure that vulnerable households gain better access to essential energy and social protection services. These efforts will also support the Moldovan Government in managing and sustaining digital innovations, enhancing the resilience and efficiency of Moldova’s energy and social protection systems,” said Daniela Gasparikova, UNDP Resident Representative in Moldova.

Thanks to Italy’s additional financial support, the ongoing smart meter installation pilot program will be expanded. Smart metering encourages consumers to use electricity during off-peak times when demand is lower, energy is cheaper, and grid load is reduced. This initiative helps balance daily energy consumption, eases pressure on the grid during peak hours, and flattens the overall consumption curve.

The first batch of 3,000 smart meters, funded by UNDP, was installed in 2023 for consumers in Chișinău, six suburbs, and the northern region of the country, including Bălți. Another batch of 14,000 smart meters will be installed [1] starting February 2025 in the North and Center-South distribution zones. By the end of this year, 35,000 smart devices, funded by Italy, will be installed. With the new financing, an additional 25,000 meters will be deployed in 2026.

With Italy’s and UNDP’s support, the government will establish a Unified National Registry of Consumption Points to streamline data management in the energy sector and facilitate data exchange between suppliers, distributors, and consumers. The Registry is a crucial step in digitalizing the sector, improving energy efficiency, enhancing grid security, and enabling real-time data monitoring to inform decisions on tariffs and consumption patterns. It will also help Moldova align with EU energy regulations and promote sustainable energy consumption, including gender-sensitive solutions and flexible pricing options for consumers.

Italy and UNDP will also contribute to the digital transformation of social protection in Moldova, building on the experience of the Energy Vulnerability Reduction Fund. A unified platform, “eSocial,” will be created to modernize and streamline public services in the sector. The platform will integrate all social protection programs, providing individuals access to various social services through a single online portal.

By enhancing interoperability and data integration across the Ministry of Labor and Social Protection and other government institutions, the system will ensure better resource targeting for those in need, reduce fraud, and enable faster processing of applications. The platform will also provide real-time data to support informed decision-making and improve the management of the social protection system.

Additionally, UNDP and Italy will assist in developing the capabilities of the Ministry’s Digital Center for Social Innovation, focusing on institutional capacity building, embracing digital transformation, and ensuring the sustainability of achieved outcomes.