Lower taxes on green energy investments: Government supports incentives for energy storage batteries and wind turbines

Government has approved a legislative initiative that provides for new tax and customs incentives for investments in renewable energy sources and energy storage systems. The measures are intended to speed up the development of green energy projects that contribute to Moldova’s energy security.

The bill proposes eliminating import duties on energy storage batteries and wind turbines. Thus, the import duty on energy storage batteries will be reduced from 5% to 0%, and on wind turbines—from 8% to 0%.

At the same time, companies investing in energy storage systems will be eligible for a VAT refund on qualifying batteries. VAT-paying companies will be able to recover the tax paid on the import or purchase of energy storage batteries, up to the amount actually paid. The refund may be used to settle obligations to the state budget or transferred to the company’s bank account.

The new measures will reduce the costs of investing in renewable energy and encourage the development of projects that include energy storage solutions, an essential element for the stability and flexibility of the energy system.

Electricity storage systems play a key role in optimizing renewable energy production. They allow for the storage of surplus energy generated during periods of peak production, when consumption is often low.

The country has recently launched its largest energy storage system to date, with a capacity of 60 MWh. According to market estimates, new storage systems are set to come online in the coming months, and total installed capacity could reach about 200 MWh.

The stored energy can then be fed back into the grid during peak consumption hours or when wholesale market prices are high, thereby reducing the need for high-cost energy imports. In this way, the batteries directly contribute to price stabilization and protect end consumers from price fluctuations.