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Moldova’s Energy Sector: Regulatory Framework and Legislation

Electricity Sector

Overview

The electricity sector in Moldova is regulated by the Agency for Nuclear and Energy Regulation (ANRE). The regulatory framework governing electricity supply is well-established, with a focus on ensuring transparency and accountability.

Key Features

  • ANRE has adopted an end-user methodology that establishes a single electricity tariff.
  • ANRE sets tariffs after reviewing proposals from licensees and has the authority to reduce tariffs for noncompliance with performance standards.
  • Moldova is a net energy importer with weak infrastructure and security of supply issues, particularly in winter months.

Gas Sector

Overview

The gas sector in Moldova is dominated by MoldovaGaz, which imports most gas (virtually all from Russia) and acts as the supplier for most customers. The regulatory framework governing the gas sector is less developed than that of the electricity sector.

Key Features

  • The gas sector lacks provisions for third-party access or storage.
  • ANRE approves tariffs for natural gas supply and adjusts them in response to volatility in import prices.

Overall Assessment

A 2011 energy sector assessment by the European Bank for Reconstruction and Development (EBRD) found that Moldova’s electricity framework has strengths in regulatory independence, autonomy, and transparency but weaknesses in market framework, network access, public service obligations, and private sector investment. The gas law provides for open access to transmission and distribution networks without discrimination, but does not specifically provide for regulated third-party access.

Recommendations

Based on the assessment of Moldova’s energy sector, the following recommendations can be made:

  • Strengthen market framework and network access provisions in the electricity sector.
  • Implement regulations for third-party access and storage in the gas sector.
  • Improve private sector investment and public service obligations in both sectors.

Conclusion

Moldova’s energy sector faces significant challenges, including weak infrastructure and security of supply issues. To address these challenges, it is essential to strengthen the regulatory framework governing both the electricity and gas sectors, improve market access and network provisions, and enhance private sector investment and public service obligations.