Moldova's dependency on imported energy
Moldova is characterized by a significant dependency on imported energy, with over 83 percent of its energy consumption sourced externally, predominantly from Russia. This reliance poses challenges for the nation, particularly in the context of its political instability and a transitional economy that has only slowly recovered from past economic turmoil. As of 2021, fossil fuels accounted for 84 percent of the energy used by Moldova's thermal and combined heat and power plants, highlighting the limited diversification in energy production. The country's energy landscape includes a minimal contribution from renewable sources, despite efforts to increase their share to 20 percent by 2020, which resulted in about 24 percent of energy coming from renewables, primarily hydropower.
Moldova lacks proven natural gas reserves and is heavily reliant on imports, with past supplies exclusively sourced from Gazprom. However, following geopolitical shifts, Moldova has ceased purchasing Russian gas as of 2023. The nation faces ongoing challenges related to securing natural gas and oil supplies, with infrastructure developments such as the Giurgiulesti terminal and potential links to international gas pipelines being crucial for future energy security. Additionally, Moldova grapples with a lack of oil refining capacity, resulting in complete dependence on imported refined petroleum products. The government is focused on enhancing competition in the energy market to secure affordable energy for consumers while exploring options to bolster the energy sector.
Subject Terms
Moldova's dependency on imported energy
Official Name: Republic of Moldova.
Summary: Moldova is scarce in resources and dependent on imported energy. Political instability and a slowly recovering economy in transition shape a fragile energy market.
Reduction of energy dependence is a key goal on the Moldovan energy security agenda, because more than 83 percent of the energy consumption is covered by external suppliers, dominated by Russia. Given that fossil fuels supply 84 percent of the energy for thermal and combined heat and power (CHP) plants, structural changes in energy production are a challenge to this young nation, which was shaken by civil disturbances and a severe economic depression during the 1990s.
Production and Consumption
As of 2021, total electricity produced amounted to 6,657 gigawatt-hours, up 19 percent from 2000. Traditionally, fossil fuels have made up more than 90 percent of the primary energy supply, followed by hydropower. In 2021, 92.9 percent of the nation's electricity was generated by natural gas, 4.7 percent by hydropower, and 0.6 percent from oil. Moldova has traditionally exported electricity, and its power line network was directly connected to the Ukrainian, Romanian, and Bulgarian networks. In spite of its electricity system operating synchronously with that of Ukraine, strengthening links with Romania through several interconnecting overhead power lines was an important issue.
Natural Gas and Oil
Moldova has no proven natural gas reserves. As a result, the country imported 2.344 billion cubic meters of natural gas in 2022. Prior to the 2022 invasion of Ukraine by Russia, Moldova bought all its gas from the Russian company Gazprom. However, in 2023, Moldova announced it would no longer buy from Gazprom or any other Russian company. Fluctuating seasonal consumption and supply and a lack of gas-storage facilities have had an impact on security of supply and stocks. Among the national priorities in this area is securing natural gas supply for the capital city, Chisinau, and its suburbs. Possible solutions are a future direct link to the Nabucco Gas Pipeline and liquefied gas imports via the Giurgiulesti terminal.
In 2022, Moldovans’ daily consumption of refined petroleum products was estimated to be about 22,000 barrels. With only one oil deposit, Valenskoye field (with an annual extraction rate of 8,000 to 9,000 tons), all refined oil products have to be imported, as there is no working refinery in Moldova.
The importance of oil as a source of energy for the country’s thermal plants has been progressively decreasing. Compared to 1990, when 25 percent (4 gigawatt-hours) of the total electricity production was based on oil, in 2021 this primary source was used to produce merely 0.6 percent of the nation’s electricity production. The Moldovan government aims to secure consumers’ supply at accessible prices by promoting competition. Several Russian and some European players are active in the market of petroleum products. In the mid- and long terms, Moldova may be included in the Euro-Asian Oil Transportation Corridor (EAOTC) project, mainly by connecting Romania to the Odessa-Brody (Ukraine) Pipeline artery. Completing the above-mentioned Giurgiulesti terminal and building a refinery near Otaci are also among the options for enhancing security in the supply of oil products.
Renewables
According to Moldova’s 2007 energy strategy, the nation set a 2020 goal of increasing renewable energy production 20 percent. By that target date, the nation received about 24 percent of its total energy from renewable sources, up more than 300 percent from 2000. Hydropower supplied 78.4 percent of Moldova's renewable energy, followed by wind power at 19.1 percent, and solar at 2.9 percent.
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