Companies in Moldova will be able to develop innovative solutions in the field of energy production, distribution or consumption. With the vote of 57 MPs, the draft law on innovative energy regulatory test-beds was passed in the first reading.

Speaking from the Parliament's rostrum, Energy Ministry State Secretary Cristina Pereteatcu said that the draft allows energy companies to test innovative solutions with exemptions from certain provisions of existing legislation, including in the tax area.

"Sandboxes are regulatory environments in which companies can test new technologies, business models or approaches to energy production, distribution and consumption without being subject to the full set of regulations that usually apply. Respectively the given space provides a safe environment for innovation, allowing stakeholders to explore the potential of new solutions while managing risks effectively. Beyond the fact that the draft normative act is developed on the basis of the recently adopted provisions regulating the introduction of regulatory test spaces by amending Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources, this draft law comes to revolutionize the energy sector in the Republic of Moldova," Cristina Pereteatcu specified.

According to the Secretary of State, the project supports the achievement of the sustainable development objectives of the energy sector, such as increasing the volume of investments in the energy efficiency sector, increasing the share of renewable energy in gross final consumption to 27% in 2030, strengthening energy security and achieving climate neutrality by 2050.

"Sandboxes provide a platform for energy companies, startups and researchers to experiment with cutting-edge technologies and business models. This encourages a culture of innovation, where new ideas can be tested and refined before being scaled up. For example, companies can test new renewable energy generation methods, advanced grid management systems or innovative energy storage solutions. Sandboxes enable faster deployment and testing of innovative solutions. This can lead to faster commercialization of innovative technologies, ultimately leading to the energy transition. Sandboxes encourage collaboration between various stakeholders, including energy companies, technology providers, regulators and consumers. Sandboxes can play a crucial role in accelerating decarbonization efforts by enabling the rapid deployment of clean energy technologies," said Cristina Pereteatcu.

The Innovative Testing Space will be authorized for a period of up to seven years, with the possibility of a justified extension for a further period of up to five years.

The implementation of the projects will be supervised by the Commission for Innovative Energy Regulatory Test Spaces under the Government.

The project was developed with the support of UNDP Moldova and with funding from Denmark, Luxembourg, the Republic of Korea and Sweden. The draft has been widely consulted with the business community, including on the platform of the Economic Council under the Prime Minister of the Republic of Moldova.

The draft law is to be voted also in the second reading by the Legislature.