Import duties on energy storage batteries and wind turbines to be abolished

Import duties on energy storage batteries and wind turbines will be eliminated. The new tax and customs incentives for investments in renewable energy sources and energy storage systems are outlined in a draft bill approved by the government.

Thus, the customs duty on energy storage batteries will be reduced from 5% to 0%, and on wind turbines—from 8% to 0%.

According to the Ministry of Energy, the measures aim to speed up the development of green energy projects that contribute to Moldova’s energy security.

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 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 allow for the storage of surplus energy generated during periods of peak production, when consumption is often low, and its use during peak hours, when demand is higher. In this way, batteries directly contribute to price stabilization and protect end consumers from price fluctuations.

Moldova recently launched its largest energy storage system to date, with a capacity of 60 MWh. Authorities expect that in the coming months, electricity storage capacity will increase to 200 MWh. Estimates indicate that the country needs approximately 600 MWh of storage capacity, prompting authorities to explore opportunities to offer incentives for investments in BESS.

Late last year, the Republic of Moldova launched its second tender for the construction of large-scale power plants to generate electricity from renewable sources. This marks a first for the Republic of Moldova by including a storage component.

Statistics show that the Republic of Moldova has surpassed the 1 GW (gigawatt) threshold of installed capacity from renewable energy sources, reaching 1,023.42 MW, an increase of approximately 69% in a single year. At the same time, over the past five years, installed capacity has increased 13.23-fold.