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WSHPDR_2013_Final_Report-updated_version

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4.1.5 Republic of Moldova<br />

Pascal Hauser, International Center on Small Hydro<br />

Power<br />

Key facts<br />

Population 3,656,843 1<br />

Area 33,851 km 2<br />

Climate Transitional between temperature and<br />

continental, with four distinct seasons 3<br />

Topography Rolling steppe, gradual slope south to<br />

Black Sea 1<br />

Rain<br />

pattern<br />

Total mean annual precipitation over 750<br />

mm. 2<br />

Electricity sector overview<br />

The electricity market in Republic of Moldova (hereafter<br />

Moldova) was formed in the period of 1997-2001 when<br />

the energy sector became subject to re-structuring and<br />

its main operators came into the market: an electricity<br />

transmission and central dispatch-enterprise called<br />

Moldtranselectro, several electricity distribution and<br />

supply companies, and the National Agency for Energy<br />

Regulation (ANRE). Currently, the Ministry of Economy<br />

and Commerce regulates the energy sector. The total<br />

installed electricity capacity of the Republic was 3,008<br />

MW in 2011. Due to the insufficient capacity as well as<br />

the high generation cost, Moldova has to import a large<br />

share of its electricity consumption. In addition, because<br />

of the inflexibility of the Moldovan power plants (i.e. the<br />

limited size of quickly responding spare capacities), the<br />

electricity deficit is supplied by Ukraine. 3 ANRE reported<br />

that in 2011 domestic production was predominantly<br />

derived from fossil fuels (91 per cent) and 9 per cent<br />

from hydropower. 4<br />

Hydro 5%<br />

Import<br />

45%<br />

Fossil Fuels<br />

50%<br />

0% 10% 20% 30% 40% 50% 60%<br />

Figure 1 Electricity generation in the Republic of Moldova<br />

Source: Energy Regulators’ Assocation 4 and Indexmundi 5<br />

Small hydropower sector overview and potential<br />

There are only two major hydropower plants in Moldova<br />

in spite of the large number of rivers. The largest is the<br />

Dubasari plant (48 MW) built in 1954 on Dniester, the<br />

most important river flowing to Moldova from Ukraine,<br />

and the second(16 MW) is located in Costesti on the<br />

Prut, it is also the second most important river in the<br />

country. Only 100 kW small hydropower is thought to be<br />

operating.<br />

Moldova’s small hydropower potential is 1,100<br />

GWh/year. The Dniester River basin, the Prut and<br />

Danube river basin cover the majority of Moldova’s<br />

territory, technically these represent the best areas for<br />

small hydropower development. 6 Under the Energy<br />

Strategy 2020, mini hydro stations with a capacity of 1.2<br />

MW are planned to be built on the Raut river, close to<br />

the village of Tribujeni (Orhei district). 7<br />

SHP installed<br />

capacity<br />

SHP potential<br />

0.1 MW<br />

1.3 MW<br />

0 0.5 1 1.5<br />

Figure 2 Small hydropower capacities in the Republic<br />

of Moldova<br />

Source: United Nations Economic Commission for<br />

Europe 6<br />

Note: Potential is based on planned capacity by 2020.<br />

Renewable energy policy<br />

The Energy Strategy until 2020, which was approved in<br />

2007, has objectives, measures and activities to improve<br />

the national energy industry, inter alia: improved energy<br />

efficiency, use of renewable energies, implementation<br />

of tariffs and improvement of energy security. 8 It<br />

foresees an increased share of renewable energy<br />

sources in the country’s energy balance of up to 6 per<br />

cent in 2010 and 20 per cent in 2020. 6<br />

Efficient use of the existing biomass potential could fully<br />

supply Moldova’s rural population with energy, using<br />

cereals, sugar sorghum and oil technical cultures - rape,<br />

sunflower, grape seeds from the wine industry. 7<br />

Barriers to small hydropower development<br />

The main barrier for investments in small hydropower in<br />

the country is capital constraints; there are no national<br />

or municipal funds for improving energy efficiency or<br />

developing renewable energy projects. High interest<br />

rates of bank loans further prevent formation of a<br />

market for private companies involved in development<br />

of energy projects. 9<br />

So far, implementation of all renewable energy projects<br />

has been carried out by State institutions. The lack of<br />

public tendering processes has also hindered the<br />

formation of a competitive environment for private<br />

companies. 9<br />

References<br />

1. Central Intelligence Agency (2012). The World<br />

Factbook. Available from<br />

www.cia.gov/library/publications/the-worldfactbook/geos.<br />

326

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