USAID funding suspension hits the Republic of Moldova's energy sector: Four projects in jeopardy
The Republic of Moldova’s energy sector is feeling the impact of the suspension of U.S. external funding, with four major projects—worth over $200 million—now in jeopardy due to the halted support from the U.S. Agency for International Development (USAID). The Ministry of Energy has requested clarifications from USAID, but no official response has been received yet. Meanwhile, authorities are exploring alternative funding sources to prevent delays in critical energy infrastructure investments.
The Ministry of Energy has confirmed that the suspension of USAID funding directly impacts four major projects aimed at strengthening the Republic of Moldova’s energy security and infrastructure:
The Republic of Moldova Energy Security Activity (MESA) – A $30.9 million technical assistance project (2022-2025) designed to enhance Moldova’s energy security.
400 kV Moldova-Romania Interconnection Line (Strășeni-Gutinaș) – Part of a $220 million package, with a Memorandum of Understanding signed in April 2024. The project was expected to be completed by 2030.
Battery Energy Storage System (BESS) – An $85 million investment for stabilizing the Republic of Moldova’s power grid, scheduled for implementation by September 2026.
The Republic of Moldova SUPER ESCO (MESCO) Program – A 25 million MDL initiative (2024-2026) focused on improving energy efficiency in public buildings.
The Ministry of Energy has reached out to USAID (as of January 27, 2025) for clarification on the implications of the funding suspension but has yet to receive an official response.
In the meantime, the Republic of Moldova is working with the EU and other international partners to offset potential delays. On February 4, 2025, the Moldovan government and the European Commission signed a Letter of Intent on Energy Independence, outlining investments and reforms to bolster the Republic of Moldova’s energy security. A two-year Action Plan is currently being developed to ensure the continuity of strategic projects.
On January 20, 2025, President Donald Trump issued an executive order suspending most U.S. foreign aid programs for 90 days, pending a review to align them with his foreign policy agenda.
Since 1992, USAID has invested over $640 million in the Republic of Moldova, supporting economic growth, democratic governance, social cohesion, and energy security. Additional U.S. funding was expected to continue until 2030, but with the recent suspension, the Republic of Moldova’s access to these vital resources is now uncertain.
