Italy is contributing €10 million via the United Nations Development Programme (UNDP) to promote energy efficiency and advance the digitalization of social protection and the energy sector. This allocation comes to complement the ongoing interventions of another €10 million contribution of Italy to UNDP in November 2023.
“This project is particularly important, especially in the context of the entire country working to improve energy efficiency. We thank the Government of Italy for all the assistance provided to the citizens of the Republic of Moldova, and the United Nations Development Programme for implementing the project,” stated Dorin Recean, Prime Minister of the Republic of Moldova.
“Energy blackmail stands as one of the tools of hybrid warfare through which those who do not want to accept Moldova’s free choices attempt to destabilize the Nation and slow down its process of joining the European Union. This blackmail has not worked and will not work out. In fact, the Moldovan Government is successfully conducting the EU accession negotiations at a brisk pace. In cooperation with the Moldovan Government, today we are signing a financing arrangement with UNDP through which Italy, in a spirit of friendship and solidarity, is donating an additional €10 million to enable the most vulnerable groups of the Moldovan people to have cheaper electricity bills and easier access to social services. Italy will continue to fraternally help democratic and European Moldova build its peaceful and prosperous future,” noted Lorenzo Tomassoni, Italian Ambassador to Moldova.
“The Italian Cooperation remains engaged in Moldova, building on the successful partnership with UNDP in the energy sector to contribute to ongoing efforts aimed at enhancing resilience and efficiency. Alongside energy, under the umbrella of our Embassy, we work in close collaboration with Moldovan institutions, international organizations, and civil society to support key sectors such as social protection, education, health, water and sanitation. By sharing technical expertise and working together with local stakeholders, we seek to develop practical solutions, strengthen capacities, and support sustainable initiatives that align with the country’s priorities”, mentioned Pietro Pipi, Head of Office, Italian Agency for Development Cooperation (AICS), Kyiv Regional Office for Ukraine and Moldova.
“We appreciate Italy’s additional contribution to UNDP Moldova, which will strengthen our ongoing efforts to digitalize the energy sector, providing greater predictability for consumers and improving sector governance. At the same time, by integrating the approach used by the Energy Vulnerability Reduction Fund into the national social protection system, we aim to ensure that vulnerable households have expanded access to essential services, including energy access and social protection. Furthermore, these efforts will support the Government of the Republic of Moldova in managing and sustaining digital innovations, enhancing the resilience and efficiency of the energy system and social protection in the Republic of Moldova,” declared Daniela Gasparikova, UNDP Resident Representative to the Republic of Moldova.
With Italian additional funding, the ongoing pilot programme for the installation of smart meters will be expanded. Smart metering encourages consumers to use electricity during off-peak periods when demand is lower, energy is cheaper, and the network load is reduced. This initiative helps balance energy consumption throughout the day, reduces pressure on the grid during peak hours, and contributes to flattening the overall consumption curve.
The first batch of 3,000 smart meters, procured with UNDP funds, 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 is set to be installed starting February 2025 in the North and Center-South distribution areas. By the end of this year, 35,000 smart devices, funded by Italy, will be installed. Thanks to the new funding, another 25,000 meters will be installed in 2026.
With the support of Italy and UNDP, the Government will establish a Unified National Register of Consumption Locations to streamline data management in the energy sector and facilitate data exchange between suppliers, distributors, and consumers. The creation of the Register represents a crucial step in the digitalization of the sector, enhancing energy efficiency, improving network security, and enabling real-time data monitoring, thereby supporting informed decision-making regarding tariffs and consumption patterns. Additionally, this initiative will help the Republic of Moldova align with European Union energy regulations and promote sustainable energy consumption that is gender-sensitive, by providing detailed information and flexible tariff options to consumers.
Italy and UNDP will further contribute to the digital transformation of social protection in the Republic of Moldova, building on the experience gained through the Energy Vulnerability Reduction Fund. A unified platform, “eSocial,” will be created to streamline and modernize public services within the sector. The platform will integrate all social protection programs, providing individuals access to various social services through a single online portal.
By enhancing data interoperability and integration across the Ministry of Labor and Social Protection and other government institutions, the system will ensure better targeting of resources to those in need, reduce fraud, and enable faster processing of applications. Additionally, the platform will provide real-time data to support more informed decision-making and improve the management of the social protection system.
UNDP and Italy will also contribute to strengthening the capacities of the Digital Social Innovation Hub within the Ministry, focusing on institutional capacity building, advancing the digital transformation process, and ensuring the sustainability of the achieved results.