Moldovan citizens are being called to vote in the second round of the presidential elections between incumbent President Maia Sandu, an independent candidate backed by the Action and Solidarity Party (PAS), and Alexandr Stoianoglo, backed by the pro-Russian socialists. Most analysts believe that a new mandate for Maia Sandu is the only chance for Moldova to continue efforts to integrate into the European energy system.
In recent years, with the support of Romania and the European Commission, the Republic of Moldova has taken significant steps to integrate its national energy systems with those of Europe and to strengthen its energy security. These efforts include infrastructure development, bilateral agreements and technical and financial support.
The Iasi-Ungheni-Chisinau gas pipeline and the natural gas market
The Iasi-Ungheni-Chisinau gas pipeline is a strategic project aimed at diversifying Moldova’s natural gas supply sources and reducing dependence on traditional suppliers. Initiated in 2014 with the Iasi-Ungheni segment, the project has been extended to Chisinau, the capital of the Republic of Moldova, and became operational in 2020. This pipeline allows the import of natural gas from Romania, offering a viable alternative and contributing to the country’s energy security. Its transport capacity is around 1.5 billion cubic metres per year, enough to cover Moldova’s annual needs.
In the last two years, the authorities have started efforts to form a natural gas market by involving Energocom and encouraging traders to participate in auctions organised through the platform of the Chisinau branch of the Romanian Commodities Exchange, BRM East Energy. From 1 January 2025, all large consumers will be obliged to purchase gas from the free market, and more and more economic agents are migrating to the BRM platform.
Interconnection of electricity grids through the Vulcanesti-Chisinau high voltage line
Another major project is the construction of the 400 kV Vulcanesti-Chisinau overhead power line, designed to interconnect the electricity grids of Moldova and Romania. Energy Minister Victor Parlicov recently announced that work on the Vulcanesti-Chisinau power line is progressing with about 160 foundations finalised. Work has also started on assembling the first pillars. The director of the UCIPE – Unit for the Implementation of Energy Projects, Ruslan Surugiu, said that work is being carried out so that the power line will be finalised on schedule, by the end of 2025. The construction of the power line is part of a larger project that also aims to modernise the Chisinau power station and expand the Vulcanesti power station. Moldelectrica director Sergiu Carmanschi says that the modernisation works are being carried out at the Chisinau station. “There are works of modernisation and installation of autotransformers from 400 to 330 and installation of the primary equipment on the 400 and 330 side in order to be able to make the connection. And the third component, which is now underway, in the tendering process, provides for the extension via a 400 kV cell to the Vulcănești station.”
Financing is provided by a loan from the World Bank and grants from the European Union. The implementation of this project will allow the Republic of Moldova to import and export electricity safely and efficiently integrated with the European ENTSO-E network.
Energy bilateral agreements and memoranda of understanding
Co-operation between the Republic of Moldova and Romania in the energy sector has been strengthened through the signing of bilateral agreements and memoranda of understanding. A notable example is the Memorandum of Understanding signed in December 2022 between the Ministries of Energy of both countries, which foresees the realisation of joint energy infrastructure projects with cross-border impact. These agreements establish the legal and institutional framework for the implementation of interconnection projects and the facilitation of energy exchanges between the two countries. They also promote the harmonisation of technical regulations and standards, contributing to the integration of energy markets and increasing competitiveness and energy security in the region.
And at European level, co-operation is getting closer. One example is the decision announced on 29 October that Continental European Transmission System Operators (TSOs) will increase their trading capacity with the Republic of Moldova and Ukraine by about 25% for the winter period 2024-2025. According to ENTSO-E, the decision was approved following the destruction of a significant number of power plants in Ukraine and forecasts of a large electricity shortage for the winter season. The results of the calculations allowed to increase the electricity export limits to 2,100 megawatts (MW), 400 MW more than at present.
The Energy Ministry in Chisinau noted that “this significant increase in export capacity is a new sign of solidarity and strong support from the European TSO community to the Republic of Moldova and Ukraine, which have been severely affected by the brutal war of the Russian Federation”.
Technical and financial assistance from Romania and other international partners
Romania has provided Moldova with technical and financial assistance for the modernisation and development of energy infrastructure. This includes transfer of know-how, training for energy sector specialists and support in developing energy policies and strategies. Romania has also provided equipment and technologies needed to modernise the energy distribution and transmission networks. This support has been instrumental in improving energy efficiency and increasing Moldova’s capacity to manage and develop its energy sector in line with European standards.
A recent example is the launch of the Sustainable Energy Investment Hub – an innovative platform dedicated to renewable energy and energy efficiency partners. The State Secretary of the Ministry of Energy, Carolina Novac, welcomed the initiative and referred to the “radical transformation of the energy sector, namely by doubling renewable energy capacities, but also by starting more energy efficiency projects for public institutions and in the residential sector”. “Irrespective of the binding energy and climate targets that our country has committed itself to, the implementation of these projects can only be realised through the close partnership of financial institutions with private sector developers and direct beneficiaries,” added Carolina Novac.
Joint participation in regional projects and European initiatives
The Republic of Moldova and Romania co-operate on regional projects and European initiatives aimed at promoting the integration of energy markets and ensuring security of supply. One example is participation in the Energy Community Treaty, which aims to extend the European Union’s internal energy market to the countries of south-eastern Europe. Both countries are also involved in projects such as the Southern Gas Corridor and the Three Seas Initiative, which aim to diversify energy sources and develop regional energy infrastructure. This regional co-operation contributes to increasing resilience and reducing vulnerabilities to external disruptions, strengthening the energy security of both countries.