Local and international companies can now develop innovative energy production, distribution, and consumption solutions in Moldova. To encourage the testing of new technologies, the Ministry of Energy, with support from UNDP Moldova and funding from Denmark, Luxembourg, the Republic of Korea and Sweden, has launched the Sandbox mechanism. Thus, Moldova has become the first country in Central and Eastern Europe to adapt regulatory approaches, responding to the emerging need for fostering innovation in the sector for an energy transition and sustainable development. 

Sandboxes are experimental regulatory spaces in the energy sector, allowing businesses and individuals to test innovations in a flexible, but well-controlled and defined environment. This mechanism grants temporary legislative exemptions from the current legal framework for a period of seven years, with the possibility of a justified extension for an additional five years. Thus, sandboxes enable companies and research institutions to test new technologies, while also helping the government ensure proper regulation of innovations and consumer protection. 

Any individual or legal entity from Moldova or abroad may apply for sandbox approval if they are not undergoing insolvency or bankruptcy, do not have conflicts of interest, and have an innovative project facing fiscal or legislative barriers. Additionally, projects must ensure consumer protection and demonstrate potential for large-scale expansion, contributing to improvements in the current regulatory framework.

Innovators interested in testing advanced solutions in the energy sector can find information about the mechanism on the dedicated web platform www.sandbox.energie.gov.md. The website details eligibility criteria, sandbox benefits, activity organization, and governance structure. Users can access project calls and useful resources to successfully implement their ideas. Updates on accepted sandbox projects, legislative updates, and case studies on the success of other projects will also be published.

The implementation of sandbox projects will be supervised by the Sandbox Commission, under the Government’s authority. This permanent interinstitutional collegial body will pre-approve applicant submissions and monitor projects in testing.

The mechanism supports the achievement of sustainable energy sector development goals, such as increasing investment volume, raising the share of renewable energy in final gross consumption to 27% by 2030, strengthening energy security, fostering sustainable economic development, and achieving climate neutrality by 2050.

The fields with significant testing potential in Moldova’s energy sector, for which applicants are encouraged to apply, include collective self-consumption and energy communities, electromobility, network flexibility and balancing services, renewable energy integration, biogas and biomethane production, tariff policies, smart grids, and advanced energy-saving technologies for buildings.

Among the first sandbox testing projects will be the application of differentiated day-night electricity tariffs for a group of household consumers who will install smart meters, with support from UNDP Moldova and Italy.