To meet its electricity needs, Moldova relies primarily on fossil fuel based generation from the Kuchurgan power plant located in Transnistria and on electricity imports from Ukraine, which together account for nearly 80% of total electricity demand.
Moldovan authorities are committed to reach a target of at least 10% of total electricity generation from RE sources by 2020, under the National Renewable Energy Action Plan (NREAP). This is a significant increase relative to the 2% share achieved in 2016. According to the local TSO (Moldelectrica) there is high wind and solar PV generation potential and the grid has the capacity to absorb additional intermittent generation. Currently, most RE electricity generation is wind and hydro-based with the share of solar PV being negligible.
As part of their commitment to support the development of renewable energy sources, Moldovan authorities have improved the policy and regulatory frameworks to attract investments in RE through several reforms including Law 10/2016, which transposes the EU directive 28/2009/EU and follows the principles set in the EU’s Guidelines on State aid for environmental protection and energy 2014-2020. Importantly, as part of these reforms, the Moldovan authorities aim to replace the previous cost-plus administratively set Feed-in Tariffs (FiT), which were unsuccessful in attracting substantial investment, by a strategy for supporting large RE projects based on competitive procurement.
Scaling-up investments in renewable energy (RE) will be an important means for Moldova to: meet its climate change mitigation commitments; increase private sector participation in its electricity sector; expand electricity generation capacity and increase the resilience of its electricity sector by reducing dependency on electricity imports and on generation from the Kuchurgan power plant, with solar and wind being the two priority renewable sources to be developed in the short and medium term.
In this context, the Moldovan Ministry of Economy and Infrastructure requested the Bank's assistance in further developing the necessary framework for the successful implementation of support and selection mechanisms based on competitive bidding processes. The request of the Moldovan authorities builds on the strong engagement of the EBRD in Moldova’s energy sector. The work on the Moldova-Romania Power Interconnection (Phase I) contributes to the resilience of the Moldovan electricity sector by allowing it to integrate with the continental European ENTSO-E electricity grid (BDS17-169). This interconnection also catalyses the reform of the Moldovan power sector through the implementation of the Power Sector Action Plan (PowerSAP), a comprehensive reform package prepared in cooperation with the Energy Community Secretariat and designed to bring Moldova’s electricity sector into compliance with the EU’s Third Energy Package.
This Project consists of a comprehensive package of technical assistance to support Moldovan authorities in developing and strengthening the overall regulatory and institutional framework necessary for the successful implementation of the competitive procurement of renewable energy. The project also includes support to the relevant institutions for the implementation of RE auctions.
The Project includes a comprehensive technical assistance package that will provide the necessary support to the relevant institutions for the successful implementation of RE auctions. This implementation support to the national authorities for administering RE auctions the relevant institutions (including but not limited to the Ministry of Economy and Infrastructure, the regulator and the offtaker) with the necessary support for the practical implementation of competitive auctions for RE.
The objective of the ‘Transport Infrastructure Delivery Unit’ (TIDU) will be to ensure more efficient cross-minister coordination and implementation of the committed transport projects. The outcome of this Assignment is expected to be an acceleration of implementation of the transport projects and a significant decrease of the undisbursed loans’ amount. EBRD proposes that the TIDU comprises 4 international experts and one local expert funded by the Bank: two international Senior Experts in International Federation of Consulting Engineers (FIDIC) standards, one international Environmental Expert with significant expertise in IFIs’ environmental policies, one Social Expert with relevant experience in land acquisition and expropriation, and one local expert to coordinate activities with the relevant ministries and state agencies, and to identify and facilitate the provision of capacity-building trainings by the international experts.
Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.
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