Moldova - Country Commercial Guide
Energy

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-10-06

Overview

Moldova’s energy sector relies heavily on imports of electricity and gas.   The country produces only about 20 percent of its annual electricity consumption from natural gas-fired combined heat and electricity power plants.  Moldova has one hydropower plant, the Costesti Hydropower Plant. Moldavskaya GRES (MGRES) in the separatist region of Transnistria supplies the vast majority of the remaining 80 percent of electricity. Moldova also imports some electricity from Ukraine, primarily for the purpose of system balancing.  Moldova’s natural gas consumption almost exclusively relies on Russian gas imports.  MGRES converts Russian gas into electricity for sale to the right bank. 

Moldova has committed to implement reforms embedded within the European Union’s Third Energy Package, a suite of legislation adopted in 2009 aimed at creating integrated and competitive energy markets for natural gas and electricity.  As part of the reforms, Moldova restructured and partially privatized its electricity distribution network, including  Premier Energy, a private company that controls 70 percent of the country’s electric distribution grid.  The government plans to privatize the remaining state-owned electric distribution companies, RED Nord S.A., and the electric power supply company, FEE Nord S.A. 

Moldova and Romania are cooperating to build an HVDC back-to-back (B2B) interconnector station, along with corresponding transmission lines, which will enable Moldova to physically connect with the Romanian grid and provide access to Romanian and, by extension, other European electricity markets.  In concert with Ukraine, Moldova also plans to synchronously connect to the European Network of Transmission System Operators (ENTSO-E).

Moldova continues progress toward unbundling Moldovagaz, the vertically integrated natural gas monopoly, to comply with Third Energy Package requirements.  Moldova is also working with Romania’s Transgaz to complete the Ungheni-Chisinau Pipeline to facilitate further diversification in Moldova’s gas supply.  The pipeline should be fully operational in 2021.

The government is also exploring opportunities to enable commercial natural gas trade via “reverse flow” (both physical and virtual) through the Trans-Balkan pipeline on Moldovan territory, which could also position the country as a transit hub.

Leading Sub-Sectors

Energy efficiency; renewable energy - wind energy, solar energy, and biofuels.

Opportunities

Energy security is a priority for Moldova.  High-voltage interconnections between Moldova and Romania require installation of a back-to-back station.  International financial institutions, including the World Bank, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB) finance the majority of these projects.  Further infrastructure investment and upgrades will be required for synchronous connection with Moldova and Ukraine to ENSTO-E.  There is also potential for support from the Development Finance Corporation.

Implementation of the Third Energy Package in the gas sector will provide opportunities for natural gas supply and trade from alternative sources from Western Europe or neighboring Romania and Ukraine.

The government plans to diversify the energy mix with more renewable energy by supporting large renewable energy projects based on competitive procurement.

There are plans to privatize a number of energy assets in the following years, including the electricity distribution companies RED Nord S.A.

Resources

Moldova Investment Agency

Ministry of Economy and Infrastructure

Energy Efficiency Agency (AEE)

National Agency for Energy Regulation (ANRE)

Trade Shows at Moldexpo at http://www.moldexpo.md/exhibitions/