The Integration of the Republic of Moldova into the EU Green Energy System Through Hydrogen Production

Abstract

In the context of heightened regional instability and rising energy insecurity triggered by the Russia–Ukraine conflict, the Republic of Moldova faces severe challenges, including surging natural gas and electricity prices that have significantly constrained its economic resilience. As a candidate country for European Union (EU) membership, Moldova's strategic energy realignment aligns with the EU’s “Energy Transition and Strategic Autonomy” agenda, which prioritizes the development of green electricity and green hydrogen to reduce dependency on imported fossil fuels. This paper conducts a comprehensive techno-economic assessment of Moldova’s potential to participate in the EU green energy system by investing in green hydrogen production. Using the Levelized Cost of Hydrogen (LCOH) model, the study evaluates the financial and regulatory feasibility of constructing a 5 MW electrolysis facility under different technological and market scenarios. The findings suggest that Moldova possesses both economic and infrastructural conditions conducive to producing tradable renewable hydrogen, in accordance with EU standards. Furthermore, the development of a domestic hydrogen industry could stimulate demand for renewable electricity, catalyze investment in green infrastructure, and contribute to Moldova’s long-term energy independence and economic diversification. This research offers both theoretical insight and policy guidance for small transitioning economies seeking to integrate into regional green energy markets. UDC: 620.9(478):061.1EU; JEL: Q42, Q48, Q56, O13, F15