Digital Energy Governance and Small-State Energy Security: Digital Policy and Institutional Capacity in Moldova’s Energy Transition

Abstract

In recent years, driven by global energy transition and geopolitical competition, energy security has become a central issue in international political economy. The Russia–Ukraine conflict has profoundly reshaped Europe’s energy landscape, highlighting the structural vulnerabilities of small Eastern European states along geopolitical fault lines in terms of energy structure and governance capacity. Using Moldova as a case study, this paper explores how digital policies can be transformed into a novel form of institutional capacity for small states to address limited physical resources and asymmetric interdependence. The study finds that digitalization of energy systems, through virtual peak-shaving mechanisms, effectively compensates for deficiencies in physical storage and infrastructure, providing an institutional substitute for external energy dependence. Moreover, digital transformation reconstructs the state’s knowledge-power structure by reducing information asymmetry, enhancing governmental regulatory capacity and capital attractiveness. Digital platforms also act as technical interfaces connecting small states to regional multilateral rules, and through deep institutional alignment with the European Union, reinforce strategic energy security. The paper highlights the role of digitalization as a tool of sovereignty empowerment, offering new theoretical insights and empirical evidence for understanding how resource-constrained small states navigate energy security challenges in complex international environments. UDC: 338.246:[620.9:004](478); JEL: Q48, F52, P28