The cessation of electricity deliveries from the Cuciurgani power plant in the Transnistrian region has caused a significant amount of cheap energy to disappear from Moldova’s energy market. At the same time, however, it was a step forward on the road to energy independence for Chisinau, said Alexandru Săndulescu, senior European energy advisor, at the conference “Regional approach: Chisinau 2025”, organised by Energynomics.

“There has been an energy crisis and it has affected the right bank, and our region, with the disappearance of cheap power from MGRES. Of course, it was bound to happen sooner or later, it was obvious, but it happened on 1 January. On the one hand, suppliers on the free market are happy that they have finally escaped the pressure of the low wholesale market price. On the other hand, this change has materialised in an increase in regulated tariffs for end-users, by 65% in the north and 75% in the centre and south of the country,” said Săndulescu.

He said that with the interruption of energy supplies from Transnistria, the Republic of Moldova started to buy almost all its energy from the European market. Aligning prices with those in the European Union helps to strengthen the country’s energy security. However, Moldova is facing serious difficulties in balancing its energy system, and these difficulties have been exacerbated by the cancellation of USAID pledged funds.

“Unfortunately, in the balancing area, the need is great and progress is small. We have not yet been able to move forward. Moreover, we have even taken a step backwards. USAID had promised serious investment in this area, but it has suddenly evaporated. So the only solution is to attract private investment in this area,” Săndulescu said.

He emphasised that stability is needed to attract this investment. Without stability, investors will not come to the country. To this end, the authorities in Chisinau are trying to put in place a mechanism to ensure a predictable price, not for balancing energy, but for the capacity available for balancing, guaranteed for five years after the investment. This model has already been applied in the Baltic countries and Ukraine.

At the same time, once the market stabilises, the state company Energocom, which currently holds the monopoly on energy supplies in the country, will significantly reduce its scope of activity.

“Energocom will gradually disappear once the market is opened, because we hope other electricity suppliers will come in. Energocom will only be left with the responsibility for security gas storage, which is about 48 million cubic metres. The remainder of the storage obligation, 15 per cent of the total needs under the new gas law, will be transferred to all gas suppliers. So part of the dinosaur is disappearing”, concluded Săndulescu.

The conference “Regional Approach Chisinau 2025” was organised by Energynomics with the support of our partners Elektra Renewable Support, Adrem Asset Management, Boglight Gaz Moldova, Siemens Energy, Simtel, SolaX Power, SolarToday.