Electricity

Implementation indicators

  • Unbundling

    Unbundling

    After the first failed attempt to certify the transmission system operator Moldelectrica in line with the ownership unbundling model, it was decided to use the independent system operator model instead. However, the national legal framework still needs to be amended for this purpose. Legal and functional unbundling of the distribution system operators is finalised.

  • Access to the system

    Access to the system

    Tariffs are approved and published. The connection Network Codes, transposed by a decision of the regulator, entered into force in January 2020. The Transparency Regulation is transposed by the wholesale electricity market rules, approved by the regulator in August 2020 and published in October 2020.

  • Wholesale market

    Wholesale market

    The wholesale electricity market rules were approved by ANRE. They will only enter into force on 2 October 2021, i.e.
    one year after their publication. A new procedure for procurement of electricity, also part of the wholesale market rules,
    will enter into force already on 1 January 2021. Transposition and implementation of REMIT is pending amendments to the Electricity Law.

  • Retail market

    Retail market

    Despite the fact that all customers are formally eligible, retail market competition is only slowly taking off and most of the customers continue to be supplied at regulated prices.

  • Regional integration

    Regional integration

    The Moldovan and Ukrainian transmission system operators have made progress towards the allocation of cross-border
    capacities. However, the different levels of their market development make market integration difficult at this stage. The finalisation of the interconnection with Romania is expected only at the end of 2024.

State of compliance

There was modest progress in the electricity sector during this reporting period.

The first attempt to certify Moldelectrica failed due to lack of ownership over the assets and separation of control. A negative Opinion of the Secretariat on the preliminary certification of Moldelectrica was issued on 11 October 2019. None of the Third Energy Package unbundling models can be implemented under the current legislative framework in Moldova. The Moldovan authorities are in the process of transposing the independent system operator model in the Law on Electricity.

On 7 August 2020, the energy regulator, ANRE, approved the wholesale electricity market rules, developed with the support of the Secretariat. The rules will only enter into force one year after their publication, i.e. on 2 October 2021. The wholesale market rules transpose the Transparency Regulation. The rules also include a procedure for the procurement of electricity which will be operational as of January 2021. However, its implementation will be problematic in the absence of the transitional balancing rules which will enter into force only in October 2021.
Currently, there is no mechanism for distributing the imbalances between the balancing responsible parties in Moldova.

The 2020 electricity procurement procedure was temporarily suspended for three months due to the Covid-19 crisis. The procedure re-commenced once the state of emergency ended. This year once again, Energocom won all the procurement procedures organised by the transmission and distribution system operators and the regulated suppliers, with electricity supplied by Moldavskaya GRES, the power plant located in the region of Transnistria. The procurement procedure is contested by Ukrainian company DTEK.

All final customers are eligible. New rules for switching the electricity supplier, aiming to simplify the procedure, were approved by ANRE. However, competition at the retail level is limited and mirrors the lack of competition in the wholesale market. The Electricity Law provides that regulated prices must be gradually eliminated; however, no concrete steps have been taken in this regard.

The electricity network code and a new regulation on access to the electricity transmission networks for cross-border exchanges and congestion management in the power system were adopted by ANRE in November 2019.

Cross-border capacity allocations were not yet introduced by the Moldovan transmission system operator in anticipation of joint auctions on the Ukrainian border. There is progress regarding inter-transmission system operator arrangements for the settlement of unintended deviations. The transmission system operators of Moldova and Ukraine agreed in principle on the terms of the agreement and the financial settlement of such deviations. Another obstacle to the development of competition in the Moldovan electricity market is the lack of interconnection with Romania. Asynchronous interconnection (using back-to-back stations) is expected to be finalised by the end of 2024.