Drought Threatens Moldovan Energy Prices Amid Regional Instability

Moldova's President Maia Sandu is warning that drought conditions could lead to increased energy prices due to reduced electricity production. Sandu stated that the worst-case scenario would result in higher prices if the drought continues, affecting hydroelectric power production and the operation of some power plants in the region.

The head of state emphasized that external factors such as regional hydrological conditions, operational status of power plants, ongoing war in Iran, and regional instability are impacting oil and gas markets. Sandu noted that if climate conditions improve, the pressure on prices could diminish, but Moldova will continue to invest in renewable energy and storage capacities to reduce its dependency on the regional market.

The Government is currently calculating potential compensation for the population, prioritizing low-income households, which represent a significant portion of household expenses in Moldova. Sandu acknowledged that securing external support may be more challenging due to similar issues faced by other countries.