The first generation units emerged in Basarabia at the outset of the XX century. In the year 1913 their installed capacity was about 1 MW and the annual output was 900 000 kWh. As it is stated in Romania Encyclopedia (edited in late thirties), before the Second World War the population of Basarabia was 2.864.000 inhabitants living in 1.864 localities, out of which only 23 were electrified. A number of 406 000 of population were using electric power, that is 14% of total. The town of Chisinau in the year 1920 was consuming 2,94 kWh and in the year 1935-4.77 kWh. Town of Cernauti, other important center of Basarabia at this time was consuming 4,20 kWh in the year 1920 and in the year 1935 - 10.96 kWh. For comparison, in Chisinau 7910 (31%) out of 25562 households used electric power whereas in Carnauti 16197 (59%) out of 27650 households were connected. In the year 1939 in Chisinau were operating one Combined heat and power plant with capacity 1000 kW and a diesel generation unit, with smaller capacity. Cernauti had two CHPs and one diesel generation unit with capacities similar to those of Chisinau's. In the town of Balti one gasoline and one gas fueled units were in operation, and in Cetatea Alba two generation units, one steam and the other diesel fueled. In that period in, Briceni, Orhei, Tighina, Cimislia, Comrat, Tatarbunar, Ismail and Reni the electric power was produced by the gasoline fueled units. Most of the electric power generation capacities were private owned and have been designed for supplying certain industrial consumers. With exception of the most important cities the electric power consumption in Romania, including prewar Basarabia was reduced, because of the low living standards.

From the beginning, only at the sugar plant in Ribnita (from 1896) and brick factory in Tiraspol (from 1913) power generation units have been installed. Also, some generation capacities have been installed at some wheat mills. In the year 1922 in Tiraspol the first electric station has been built with the capacity 130 kW. The period before the Second World War is characterized by building of several small capacity electric power plants, including the first industrial power plant in RASSM - Tiraspol CHP with the capacity 4400 kW, commissioned in 1937. by the end of the year 1940 the combined annual output of the RASSM electric power plants was 17.2 mln. kWh and the total capacity was 12.5 MW.

The Second World War has destroyed the national economy, including the energy sector of the future Soviet Socialist Moldova Republic, so that after the war the electrification started from scratch. It is worth to mention that the Kremlin administration has a crucial contribution for development of the energy sector of RSSM. In the beginning of 1945, the State Committee for Defense of USSR has transferred to the Republic 5 mobile power plants, two of which were train mounted. Up to the year 1946 in RSSM a number of 187 power plants were in operation and by the year 1950 the combined capacity of all built plants was exceeded by 3.3 times the prewar capacity and electric power production respectively higher by 5.8 times. Subsequent development of the energy sector of the republic was realized in an entirely new way - building of the big capacity plants. In the year 1951 CHP 1 in Chisinau has been commissioned, in 1955 the Dubasari hydro plant (40 MW) and high voltage (110 kW) line Dubasari- Chisinau started operation, and in 1957 the first unit of CHP Balti was commissioned. By 1960 the combined capacity of the Moldova power plants was 20 times higher than the plant capacity before the war. A decisive role in development of the energy sector in Moldova had Moldova CHP in Dnestrovsc which development started in 1961 on the Cuciurgan lake's bank. At the end of '60s plant capacity reached 2020 MW, and annual production was 13.7 bln. KWh. The Chisinau and Balti CPHs have been modernized. At the beginning of '70s two more units at the Dnenstrovsc power plant have been built. In 1976 CHP2 in Chisinau was commissioned, having two blocks of 80 MW each, and on the Prut River the Hydro-node Costesti has been commissioned (two 16 Mw units) in cooperation with Romania. Later at CHP 2 one more unit with capacity of 80 MW, has been commissioned. The combined capacity of the 5 exiting plants reached 2898.4 MW and annual output was 17.5 bln. kW, 89.2% of which was at the Dnectrovscaia plant. In 1962 the power system of the republic was completed and by 1967 the electrification of the entire republic was attained.

When CHP1 in Chisinau was commissioned in the republic started the centralized production of the thermal energy. The total maximum capacity of heat production was 8 mil Gcal/year. The existing plants were further modernized with the goal of fuel consumption minimization. Automated technology processes control systems have been implemented. A special attention was paid to environmental issues. At the CHP1, CHP2, CHP Nord water cleaning systems have been installed. The installation works of the first in the USSR installation for combustion gases cleaning have been completed. The residuals of Dnestrovsc power plant were used in building and construction industry. A factory, which converted annually 135 tones of ashes into building material, was operating very close to it. Implementation of the autonomous system of management and automating of the technological processes contributed to enhancement of the technical and economic parameters.
In 1987 the power system of the country reached 25 years of development. In the period of '70s-'80s the Moldovan power system allowed the national economy to evolve rapidly. In that period Moldova exported electricity to Ukraine and Bulgaria.

After the Transnistrian conflict the power system of the republic was separated in two parts, which decreased its viability by an important degree. Starting with 1994 the companies of the Nistru's left bank operate under Dnestrenergo umbrella which has substantially complicated management of the power system of the republic. In the period 1990-1993 the internal consumption as well as exports has been provided by local generation. Subsequently, imports became more important because of non-operation of the local generating capacities, especially Dnestrovscaia power plant. The generation is provided at that time by the State Heat Power Plant (SHPP) Moldavscaia, CHP1, CHP2, CHP Nord, hydro plants in Costesti and Dubasari as well as 10 sugar factories power plants. The installed capacity at the mentioned plants was 3008 MW, including capacity of CTES Moldavscaia - 2520 MW (83%). Because of lack of financial means, the increase of the installed capacities was not possible, as well as modernization and reparation of the fairly obsolete equipment. As a result, the available capacities of all power plants in Republic of Moldova were not sufficient to assure its needs. Power plants at the right bank were producing only 335 MW, whereas in the winter time there is a need of 1100-1200 MW, and in the summer period of some 500-600 MW. The rest was imported from the Ukraine, CTES Moldavscaia (from the left bank) and from Romania. Starting with 1993, the situation in the Moldova power system deteriorated mainly of the following reasons:

All these circumstances conducted to creation of huge debts to the power and fuel suppliers, financial blockage and finally to an unprecedented crisis in the electric power sector of the republic.

For the solving of the situation in 1997 the Government launches a program for restructuring of the energy sector supported by the international financial organizations. In 1997 the state company Moldenergo was decentralized and corporatized, being divided into four categories according to their functional principle: power production, transmission and dispatch, power distribution and power related services. Thus, 16 new companies emerged. A Moldova - Russia Joint Stock Company "Moldova Gaz" was created, were 50% of shares belong to the Concern "Gazprom" (Russia). The rest of the companies of the energy sector are as well under reorganization process. In 1997 the National Regulatory Agency has been created, an entity which regulates economically the energy sector of the republic and protects the consumers. In 1999 started the real phase of the privatization process of the distribution companies and other important energy objects. In 2000 the Spanish group "Union Fenosa" privatized the power distribution companies SA RE Chisinau, SA RED Sud and SA RED Centru, which constitutes 70% of the total power market of the country.

For the last 5 years the performance of the Moldovan energy system became more stable and predictable. In 2003, the Government adopted the decentralization strategy for district heating (with the exception of Chisinau and Balti cities), which is successfully implemented also via Energy II World Bank Project. The economic recovery and financial improvement of the energy related companies led to the possibility for the state-owned energy enterprises, during the last years to reinvest more than in the past.

As per the development strategy of the energy complex of the Republic of Moldova by 2010 the main objectives of the energy policy are: finalizing of the privatization process and establishing of the power market, promotion of energy efficiency and energy conservation, assurance of state energy security, environment protection. Thus, by 2010 the basic goals will constitute: creation of the necessary conditions for joining UCTE by national system, increasing of the generation capacities, and enhancement of the interconnections with the West. Currently, Republic of Moldova imports about 98% of primary energy resources, whereas the share of the natural gas in the balance of total energy resources consumption constitutes about 70%. Interconnections with the West are done only via 3 lines of 110 kV. Thus, in the sector will be encouraged erection of a several new power plants with installed capacity of 100-300 MW each, as well as increase of the existing capacities. From strategic viewpoint it is envisaged that by the year 2010 the consumers from 100 kW and higher, will have the right to choose the power supplier. In the same time, it is envisaged to create the necessary conditions for national power system to start its operation in synchronous mode with Eastern and Western systems.

In the heat supply sector will be promoted cogeneration by converting of the power plants into CHPs. The installation of meters will be completed for the budgetary and household sectors.

For security reasons of the country the possibilities of acquisition of the natural gas from Middle East countries, Near east and north Africa, North Europe. It is planned to build by 2010 some main gas pipelines: Causeni-Chisinau, Drochia-Ungheni-Iasi, as well as exploitation of the gas deposit in Victorovca (Enichioi).

Development of the liquid and solid fuels sector will be realized by finalizing by 2010 of the oil terminal in Giurgiulesti and building of the oil pipeline Giurgiulesti-Chisinau with afferent ramifications. The centralized system of fuel import-export operations registration will be developed.

The energy sector produces up to 30% of the total harmful substances within the country as a result of economic activity. The main ways for diminishing the impact of the energy complex over the environment are the following: substitution of the fossil fuels by natural gas, development and implementation of state environmental norms at the European level, as well as development of an economic mechanism for environmental protection. Restructuring and privatization of the energy sector, which are currently ongoing will solve to a great extend the ecological problems, which are by now unsolved because of lack of financing.

As per the development strategy of the energy sector of the Republic of Moldova, a special emphasis will be dedicated to energy education of the population. For this purpose a set of national educational programs for rational use of energy resources will be developed. These programs will be implemented within the national education system at all levels, but the main role in this will play the higher education system.