IEEJ: August 2012 All Right Reserved

IEEJ : June 2012
JICA Training and Dialogue Program

Moldova:
Energy Security
Policies and Problems
Mircea Suruceanu
Senior Expert,
Departent for District heating
Ministry of Economy of Moldova
Tokyo 2012

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General Overview

Area-33846 km2
Population-3,5 mln
Situated south-east of Europe
Density of population 121.9/km2
Economy- based on sevices 75%
agriculture 19%
industry 11%

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Moldovan Energy System overview− Power supply system:* Power market ‐ partially open (3 eligible customers, equivalent to ~10%);* According to the Law on Electricity, opening of the power market shall be
performed in stages:
1st for non‐household customers till Jan 1, 2013;
2nd for household customers till Jan 1, 2015.

− Natural gas supply system/“market”:* De jure, natural gas market ‐ fully opened;* De facto, no alternative suppliers (natural gas imported from one source only).

− District heating supply systems;* 15 regulated companies, which generate up to 3 mil. Gcal of heat;* One supplier per locality (no alternative suppliers), except Chişinău and Bălți.

− Petroleum products supply market:* Fully opened market;* 168 licensees (import, wholesale and/or retail trade of petroleum products)* Full competition between participants ensured.

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Power system,Electricity generation
 Three co‐generation Power Plants:
CHP‐1 (66 MW)
CHP‐2 (240 MW)
CHP‐North (24 MW) Two Hydro Power Plants
HPP Costesti (16 MW)
HPP Dubasari (48 MW)

 Kuchurgan Thermal Power Plant(MGRES, 2520 MW)
 10 CHPs at Sugar Factories(98 MW)IEEJ: August 2012 All Right ReservedPower system,
Transmission and Distribution of Electricity
 Transmission and dispatch:
SE „Moldelectrica”
 RED Union Fenosa: 65% of
the total number of customers
and 72% of the total supply ofelectricity (private company); RED Nord: 22% of the total
number of customers; 17% of
the total supply of electricity(state‐owned company); RED Nord‐Vest: 13% of the total
number of customers and 9% of
the total supply of electricity(state‐owned company); One eligible customer ‐ 2% of
total electricity supply.

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Power system,Interconnection electric networks

Seven 330 kV and 14
110 kV overhead powerlines ensure parallel
operation of Moldova’s
power grid with Ukraine’s
power system;
Moldovan network isinterconnected with
Romanian power network
through three 110 kV andone 400 kV line.

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Gas infrastructure,
Transmission and distribution of natural gas
 TSO: LTD “Moldovagaz”:- 50% shares owned by “Gazprom”(Russia),- 36.6% ‐ Government of theRepublic of Moldova and- 13.4% by “Tiraspoltransgaz”
 27 DSOs (12 owned by JSC“Moldovagaz”);
 4 natural gas transmission pipelines(for transit of natural gas); 4 compressor stations: Drochia,Tiraspol (2), Vulcanesti; 18000 km gas pipelines, including cca.
570 km of transit pipelines; Over 90% of localities have access tothe natural gas;

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Energy System of the Republic of Moldova:
current situation
 Lack of own energy resources (natural gas, oil, coal) - 94%of the energy consumption is covered from import;
 High energy intensity and poor energy efficiency;
 Low level of renewable energy sources utilization;
 Fuel mix deviation from the optimal one (the importednatural gas prevails);
 Insufficient investments in the energy sector, etc.
The lack of own resources and high energy
intensity sets the energy efficiency and use ofrenewable energy sources as a top priority

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Energy Security Objectives
 Promotion of energy efficiency measures and use ofrenewable energy sources;
 Strengthening energy interconnections with Ukraine andRomania; Accession to ENTSO-E (UCTE); Improvement of investment climate in energy sector;
 Diversification of fuel types used on the territory of thecountry as well as the sources of imports of energy
resources.

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Security of Energy Supply - Legal framework•Law on Electricity, no. 124 from 23.12.2009 to transpose theDirective 2003/54/EC concerning common rules for the internalmarket in electricity.

•Law on Natural Gas no. 123 from 23.12.2009 to transpose Directive
2003/55/EC concerning common rules for the internal market innatural gas.

•Law on energy efficiency no. 142 from 02.07.2010 to transpose
Directive 2006/32/EC on energy end-use efficiency and energy
services.

•Other legal acts to address the problems of heat supply and ensure
legal harmonization with EU aquis.

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Legal and institutional frameworkfor promotion of EE and RES
1.
2.
3.
4.

Law on renewable energy (No. 160 as of July 12, 2007)
Law on energy efficiency (No. 142 as of July 2, 2010)
Energy Community Treaty – accession as of May 1, 2010;
Energy Strategy until 2020 – to be updated and extended until
2030;
5. National Energy Efficiency Program 2011‐2020 ‐ approved byGovernment Decision No. 833 as of November 10, 2011;
6. Energy Efficiency Agency – created by theGovernment Decision No. 1173 as of December 21, 2010;
7. Energy Efficiency Fund – to be put in place in 2012.

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Measures undertaken by the Government to ensure thesecurity of energy supply– The process of synchronous accession of Moldovan andUkrainian electricity systems to ENTSO‐E was launched;– Negotiations regarding the financing opportunities for feasibility
study concerning the accession to ENTSO‐E were carried out;
– The designing of the 400 kV HVL Balti ‐Suceava was started– Reconstruction of substation of 330 kV from Balti wasperformed;– The construction of HVL 110 kV Falciu (RM) – Gotesti (Romania)
is on the final stage;– The construction of gas pipeline Ungheni‐Iasi with a length of 18km, ensuring the connection with Romanian Gas Supply System,
is under implementation.

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Increasing electricity supply security

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Energy Consumption
1.Natural gas supply (2011)

Number of customers: 615 220
Consumed volumes: 1 036 mil. M3 (4,9% less than 2010),
Price paid by the national TSO 339,3 $/1000 M3, 2010 ‐ 250,1 $/1000 M3 , increase
35%
Price paid by the consumers 438 $ $/1000 M3 , 2010 – 341 $ $/1000 M3 , increase
28,4%
Consumption, by category:Population: 340.5 mil. m3 (31%)
Energy sector: 457.8 mil. m3 (42%)
Industry: 291.5 mil. m3 (27%)
Gas transit to other countries: 16 670,5 mil. m3

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Energy consumption,
2.Electricity supply (2011)


Number of customers: 1 283 815
Supplied electricity: 3.905 billion kWh, increase with 1,9% comparing 2010
Structure of import:
Imported (Russia, Ukraine): 3071 mil. MWh, increase 3% comparing 2010,costs 62 $/1 MW
Network losses 13%Local generation: 837 mil. MWh, decrease 5% comparing 2010, costs 90$/1MW
Price paid by the consumer 110,34 $/1 MW
Exported to Romania (MGRES): 369.9 mil. kWh

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Energy consumption
3. Oil market•

Overall consumption: 625 th. tons, increase 9,2 % comparing 2010

•Local production: 3636 tons, decrease 4% comparing 2010

•Structure of imports:- Gas: 193 th. tons, increase 3,8% comparing 2010
- Diesel: 353,6 th. tons, increase 14,1% comparing 2010
- LPG: 78,1 th. tons, increase 16,9% comparing 2010•

Price structure:- Gas: 1014 $/ton, increase 32,2% comparing 2010
- Diesel: 1022$/ton, increase 36,9% comparing 2010
-LPG: 844$/ton, increase 30,8% comparing 2010

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Current objectives and issues in fulfilling them
As Moldova joined the Energy community, it has to fulfill a series ofobligations. On the policies direction there are the following barriers
to overcome:•Implementation of the 3rd energy package, concerning theunbundling of the market. Important issue: S.R.L.Moldovagaz (SADGazprom) opponence to the demonopolisation of the gas market.

•District heating: optimisation of activity, increase of efficiency,privatisation of the generation capacities, sensibilisation ofpopulation on the payments for the consumed energy. Promotion
thru different instruments of energy eficiency measures•Implementation of regulatory documents in energy efficiency anduse of RES , for further development of the sector and increase ofthe independence and security of supply.

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Suitable topics for development
In the context of the above mentioned information it would be
oportunical to study the following subjects:•Unbundling of the energy market•

Optimisation of district heating, experince of Japan in the sector.

•Energy efficiency at both house hold and industry sector – as ameasure to tackle the increasing demand and prices•

Promotion and utilisation of the Renewable Energy Sources, as ameasure of diminishing the dependance from fossil and importedfuels•

Measures for attraction of investments in the energy sector

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JICA Training and Dialogue Program

Thank you foryour attention!

Contact : report@tky.ieej.or.jp