Incentives for investments in green energy in Moldova: customs duties eliminated for storage batteries, wind turbines

Investments in renewable energy sources and energy storage systems will benefit from tax and customs incentives through the elimination of customs duties. Thus, the customs duty for storage batteries will be reduced from 5 per cent to 0 per cent, and for wind turbines - from 8 per cent to 0 per cent. The draft law providing for these measures was approved today by the parliament in the first reading, with the support of 68 MPs.

At the same time, the draft stipulates that enterprises investing in energy storage systems will be able to benefit from value added tax (VAT) refunds for eligible batteries. VAT-paying companies will be able to recover the tax paid on the import or purchase of storage batteries, within the limit of the amounts actually paid. The refund can be used to offset obligations to the state budget or transferred to the company’s bank account.

The legislative initiative belongs to a group of MPs from the Action and Solidarity Party’s (PAS) parliamentary faction.

“Through this draft, we are trying to ensure and support the business environment, so that it has faster cash-flow instruments, thereby reducing the implementation time of investments and creating conditions to decrease dependence on external energy sources. We are confident that this draft is expected by the business community, because it is exactly a draft that brings real solutions, with a rapid implementation timeline, and that will turn intentions into real projects for people. We are not promising economic growth, but we are facilitating it. We are not merely declaring support for investments, but we are building it through clear fiscal and customs rules. We are not just talking about energy transition, but we are accelerating it through concrete decisions,” said MP Victoria Belous, one of the authors of the draft, at the parliament meeting.

According to the explanatory note to the draft, the elimination of customs duties will speed up the implementation of wind power projects, whose plants, once operational, will replace costly electricity imports with domestic production.

“The draft will have a positive impact, by contributing to strengthening energy security, stabilizing electricity prices and reducing the risk of interruptions in electricity supply. The development of investments in the energy sector can also contribute to creation of jobs and regional economic development,” the explanatory note reads.

The legislative initiative is to be examined by the parliament in the second reading as well. After adoption, the legislative amendments will enter into force on the date of their publication in the Official Journal. The provisions regarding the postponement of the import deadline will apply to operations carried out until July 1, 2028.

Electricity storage systems allow surplus energy generated during peak production periods—when consumption is often low—to be stored and used during peak hours, when demand is higher. Thus, batteries contribute directly to prices’ stabilization and protect end consumers from price fluctuations.

Moldova has recently launched the largest energy storage system to date, with a capacity of 60 MWh. The authorities expect that, in the coming months, electricity storage capacity will increase to 200 MWh. Estimates show that the country needs around 600 MWh of storage capacity, which is prompting the authorities to explore opportunities to provide incentives for investments in BESS.