European funding could allow the Republic of Moldova is to be connected to neighbouring Romania’s power grid in a bid to diversify its electricity supply.
A new project entitled ‘Moldova Romania Power Interconnection Phase I’ is now under consideration with the aim of diversifying the former Soviet nation’s electricity supply and domestic transmission network.
As it stands, Moldova currently imports 80% of its electricity needs. This new deal will see them borrow an initial sum of EUR80 million as part of a total EUR270 million investment provided by European Investment Bank, the World Bank and the European Commission Neighbourhood Investment Facility.
The loan will allow for the placing into operation of ‘a back-to-back connection between the electricity systems of Romania and Moldova’.
The project report states that this deal ‘will enable Moldova to import additional energy from the ENTSOE network. This will considerably enhance stability and reliability of power supply that are prerequisites for private sector development. This will in turn contribute to the long-term sustainability and security of the Moldovan power sector. The project will also enable Moldova to enhance its cooperation with Romania and ENTSO-E countries, allowing more regional integration.’
Moldelectrica, a 100% state-owned entity, are the company who will be the beneficiary of the loan while the borrower is the Republic of Moldova itself.
Public consultations will be carried out until the final tabling of the deal in November 2017.