Electricity distribution moldova

Market information presented in this section does not cover the Transnistria region, as Moldovan state institutions do not monitor its energy sector. Only two electricity market participants from the Transnistria region requested and obtained licences from ANRE: Cuciurgani-Moldavskaya GRES (MGRES) p
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Market information presented in this section does not cover the Transnistria region, as Moldovan state institutions do not monitor its energy sector. Only two electricity market participants from the Transnistria region requested and obtained licences from ANRE: Cuciurgani-Moldavskaya GRES (MGRES) power plant requested a licence for electricity production, and a supply licence was issued to Joint Stock Company (JSC) Energocapital.

The TSO and two DSOs have been legally unbundled from generation and supply activities. The Electricity Law provides an ownership unbundling model for the TSO and the conditions for certification as per Moldova''s commitment to the Energy Community Treaty (ECT).

Moldelectrica is the state-owned TSO and central dispatcher for the whole country, including the Transnistria region (). RED Nord (state-owned; ) and Premier Energy Distribution (privately owned; https://premierenergy.md) are the DSOs. Premier Energy Distribution covers two-thirds of the country, and in 2020 privatisation will also be proposed for RED Nord.

At the end of 2016, Frontera Resources (a US company) and Moldovan authorities signed a 50-year concession agreement for the exploration and development of hydrocarbon resources in southern Moldova. The contract grants Frontera Resources the exclusive right to explore and develop oilfields within an area of 12000 km2, focused around the Dobrudga Basin. The aim of this concession is to increase and diversify Moldova''s energy sources and reduce the country''s dependence energy imports.

Moldova''s total storage capacity for petroleum products is over 150000m3, including state and industry storage but excluding the army''s. In addition, the Giurgiulesti terminal has eight tanks for petroleum product storage with capacity of 63600m3 at its disposal.

Moldova''s gas market is entirely monopolised: the majority of functions – imports, supply management, cross-border and national transmission, distribution and retail – are performed by MoldovaGaz and its subsidiaries (). MoldovaGaz is owned by Gazprom (50%), the Moldovan government (36.6%) and the Transnistrian administration (13.4%).

MoldovaTransgaz, a MoldovaGaz subsidiary, was the only gas TSO (except Tiraspoltransgaz from the Transnistria region) until January 2015 when VestMoldTransGaz also received a transmission licence (). The Law on Natural Gas introduced three possible unbundling models for gas TSOs and transposed a derogation granted by the Ministerial Council of the ECT allowing unbundling until 1 January 2020.

Moldovagaz acts as an importer, wholesaler and retail supplier. Household customers and small enterprises are entitled to regulated gas supplies by the supplier under public service obligations (PSOs).

The Actual Unbundling Plan, which provides for the ITO model, was sent to the Moldovan Energy Regulatory Authority (ANRE) in December 2019. Regarding MoldovaGaz''s supply activities, a new subsidiary will be created, in order to avoid any conflicts of interest between MoldovaGaz and its daughter ITO. Implementation should happen by 1September, 2020.

VestMoldTransGaz, which operates Moldova''s section of the new Iasi-Ungheni-Chisinau gas interconnector pipeline, was created in June 2014 and received a TSO licence in January 2015. State-owned Energocom purchases and imports gas from the EU market (from Romania) and uses VestMoldTransGaz''s transmission service.

There are no gas storage facilities in Moldova and no access to liquefied natural gas (LNG). Domestic gas production meets less than 0.01% of demand, and until the end of 2016 Valiexchimp had been the only company to explore and exploit gas and oil in southern Moldova.

The Energy Efficiency Agency (EEA), an administrative body subordinate to the Ministry of Economy and Infrastructure, is responsible for policy implementation in energy efficiency and renewable energy (). Besides policy implementation, the EEA manages the National Communication Strategy in energy efficiency and renewable energy sources, aimed at promoting rational energy consumption and the use of green energy.

According to the recently adopted (July 2018) new Energy Efficiency Law, the institutional framework for the implementation of energy efficiency policies was reviewed with a view to strengthening the capacity of the competent authority. In particular, the Energy Efficiency Agency was reorganized through a merger (acquisition) with the Energy Efficiency Fund (the absorbed organization).

Other central public authority dealing with renewables and energy efficiency are the Ministry of Agriculture, Regional Development and Environment (MoARDEnv). The MoARDEnv promotes energy efficiency and renewable energy, and finances related sectoral activities through the National Ecological Fund, recognising the considerable impact of these projects on reducing greenhouse gas (GHG) emissions.

The renewable energy market – overseeing electricity and biofuels, and the heating and cooling sub-sector – is regulated by ANRE, an independent authority established in 1997 to introduce market mechanisms in the energy field while protecting consumer and investor interests. It issues licences, regulates fuel and power prices, and establishes energy pricing principles and methodologies for calculating tariffs, including for renewables'' support mechanisms through secondary legislation.

In the renewable electricity market, the key stakeholders are the grid operators: the TSO Moldelectrica, and two DSOs – REDNord (state-owned enterprise) and Premier Energy Distribution (private company) - and the Central Electricity Supplier – SA Energocom (state-owned enterprise), appointed by the government.

The main companies involved in gas supply, in the case that biogas producers eventually feed purified energy resources into the national network, are Moldovagaz and its affiliates.

Local public authorities are also influential in the energy efficiency and renewable energy sector: they develop their own plans and programmes in both energy efficiency and renewable energy, and raise funds to implement projects in priority sectors. These public authorities are also responsible for issuing permits and certificates, such as urban planning permits for deep refurbishment of buildings (when an urban planning permit is required), and can make decisions on land destination for renewable projects when necessary.

To promote development of the energy sector, Moldova''s legal framework was designed to correspond with the European framework and the relevant acquis of the Energy Community. Primary legislation includes the Law on Energy (2017), the Law on Natural Gas (2016), the Law on Electricity (2016), the Law on Petroleum Products (2001), the Law on Heat and Cogeneration Promotion (2014), the Law on Promotion of Energy from Renewable Sources (2016) and the Energy Efficiency Law (2018).

About Electricity distribution moldova

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