OECD: Moldova Must Speed Up Reforms to Create a Functional Energy Market

Moldova remains vulnerable to energy shocks, and addressing these risks depends on accelerating reforms and developing a competitive market. The conclusions and recommendations are contained in the report “Creating Functional Energy Markets in the Republic of Moldova”, prepared by the Organisation for Economic Co-operation and Development (OECD), reports ipn.md. The document analyses the evolution of the energy sector, highlighting both progress in bringing it into line with European Union standards and persistent structural vulnerabilities. The report was presented in Chisinau in the presence of OECD Deputy Secretary-General Frantisek Ruzicka, who emphasized the need to accelerate reforms, particularly in the management of state-owned enterprises. The OECD sets out a number of recommendations for transforming the sector into a competitive, efficient and integrated system within the European market. Priorities include strengthening competition and effective market liberalization, reducing the dominant role of state-owned companies, attracting investment in infrastructure and renewable energy sources, and strengthening the capacity of the regulatory authority. The OECD also recommends improving energy efficiency and optimizing consumption, whilst deepening integration into the European Union’s regional energy markets. A separate chapter of the report is devoted to the reform of state-owned enterprises, which are considered essential for the functioning of the market. The OECD proposes the professionalization and independence of boards of directors, increased transparency, risk monitoring, and the definition of the state’s role as an owner. At the same time, it is recommended that companies be assessed with a view to possible privatization or reorganization. Energy Minister Dorin Junghietu stated that the report comes at a crucial moment for Moldova’s European path and sets out guidelines for the modernization of the sector. “The OECD analysis contains valuable conclusions and recommendations regarding the importance of improving the governance of state-owned enterprises, ensuring professional and independent boards of directors, and increasing transparency in this sector,” the official said. The report concludes that, despite the acceleration of reforms in recent years, against the backdrop of energy crises and the drive towards European integration, the sector’s transformation into a functional and competitive market remains incomplete and requires sustained efforts in the coming period.