Targeted and Inclusive Approaches to Tackling Energy Poverty in a Crisis Context: Case Study from Moldova

To tackle the energy crisis, Moldova's Government established an Energy Vulnerability Reduction Fund in 2022, backed by development partners. Vulnerable households can register via a digital platform to receive targeted on-bill compensation. An algorithm categorizes applicants by energy vulnerability, considering income, energy expenditure ratio, heating system, and household composition. Eligible households benefit from reduced tariffs on gas, electricity, or heating, with those using firewood or coal also receiving a monthly cash transfer. At the same time, in the longer term, the Energy Vulnerability Reduction Fund aims to incentivize the transition towards sustainable energy sources and to achieve higher levels of energy efficiency in the residential sector.

This paper presents the main outcomes of the UNDP support for the establishment and implementation of a robust Energy Vulnerability Reduction Fund, along with an impact assessment and lessons learned that are applicable to other country contexts.