OECD's report, Creating Functional Energy Markets in Moldova, unveiled in Chisinau

The report titled, Creating Functional Energy Markets in Moldova, developed by the Organization for Economic Co-operation and Development (OECD), in coordination with the Energy Ministry and energy enterprises, was presented in Chisinau today. The report contains an extensive analysis of the sector’s evolution, the technical and political challenges in the field, policy options for developing a market‑oriented energy system, as well as measures to improve the governance of state‑owned enterprises in the sector.

The event was also attended by OECD Deputy Secretary‑General František Ružička, on a visit to Chisinau and who welcomed the progress made by  Moldova, as well as the important role of the reform of state‑owned enterprises in creating functional energy markets.

Energy Minister Dorin Junghietu said that this report came at a particularly important moment for 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, as well as increasing transparency across the entire sector. These improvements are essential for attracting investments, improving operational performance and facilitating access to sustainable financing,” said Dorin Junghietu.

Among the OECD’s policy recommendations, there are the reform of corporate governance of state‑owned enterprises, strengthening competition and market structure, attracting investments 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 document was developed with the financial support of the Czech Republic and Romania. Present at the launch event of the report, Ambassador of Romania to Moldova Cristian Leon‑Turcanu said that “Romania continues to act as an essential pillar of stability and modernization of the energy sector of Moldova, through concrete projects, institutional support and close coordination with European partners and international organizations.”

The report notes that the assets of state‑owned enterprises amount to about 10 per cent of the Gross Domestic Product, while enterprises in the energy sector generate about 43 per cent of the profit produced by the 167 state‑owned enterprises. Thus, the OECD provides a string of recommendations for improving corporate governance, including formalizing the public ownership function, monitoring risks and enhancing oversight, increasing the independence of boards and defining solid parameters for classification in the screening process, in order to decide on privatization or retention in state ownership.