EconomyMoldova braces for winter energy crisis amid gas cut-off

Moldova braces for winter energy crisis amid gas cut‑off

Starting December 15, a state of emergency will be enacted across the Republic of Moldova for 60 days. This decision was made by parliament on Friday night due to the expected cessation of Russian gas supplies starting January 1.

Night session of the government. Moldova introduces a state of emergency
Night session of the government. Moldova introduces a state of emergency
Images source: © Getty Images
Mateusz Czmiel

The state of emergency was proposed by the government based on a report from the Commission on Emergency Situations of the Republic of Moldova (CSE), as the shortage of energy resources directly and immediately impacts the security of the state and its citizens.

The motion presented by Prime Minister Dorin Recean was approved by 56 deputies, while 17 opposed, and three abstained, according to the MOLDPRES agency.

Concerns about the cut-off of supplies

The motion was presented in parliament by Prime Minister Dorin Recean.

- This winter must be the last winter in the country’s history during which we can be still threatened in the energy sector. We got rid of the gas blackmail on the right bank of Dniester and will get rid of the energy one with the finishing of the high-tension power line Chisinau-Vulcanesti, emphasized the head of government.

The Prime Minister noted that the halt of natural gas supplies to the Transnistrian region by "Gazprom" could lead to a humanitarian crisis in the region as well as pose a threat to the functioning and stability of Moldova's energy sector.

In such circumstances, greater engagement from Moldovan authorities and financial support from development partners will be necessary.

The electricity deficit is expected to be offset by purchases from the Romanian electricity market, managed by the Romanian market operator OPCOM, within the transmission capacities (NTC) for electricity imports from the ENTSO-E offering area to the Ukraine–Moldova common regulatory block.

The situation is worsened by limited electricity import capacity allocated to Ukraine and Moldova, which could lead to an increased risk of rising electricity prices and the inability to cover the entire deficit, given the inability to increase NTC between Romania and Moldova beyond 315 MW.

An additional challenge is posed by the Isaccea-Vulcănești power line, which runs through Ukrainian territory, making it susceptible to interruptions in the event of new attacks on energy infrastructure in that country.

For these reasons, the state of emergency is necessary, as it enables immediate implementation of a range of measures by the Commission on Emergency Situations.

These measures will aim to prevent, mitigate, and resolve the consequences of the situation that led to declaring a state of emergency. According to MOLDPRES, this will particularly allow for the introduction of a special regime for rapid procurement of electricity and natural gas and allocation of funds for this purpose. The government will also be able to authorize suppliers and system operators to acquire, transport, and distribute electricity and natural gas throughout the country's territory.

Furthermore, the Commission on Emergency Situations' provisions will allow, if necessary, for rationing energy consumption and ensuring the public is informed about the scope of the extraordinary situation and protective measures for the population.

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