Moldova produces only about 20% of its annual electricity consumption from natural gas-fired combined heat and electricity power plants. As it lacks energy resources, it is primarily dependent on fossil fuel and electricity imports to meet domestic demand. With this in mind, the government plans to diversify the energy mix with renewable energy, which currently makes up 6% of electricity generation (including hydropower, wind, and solar photovoltaics).
Moldova has been a contracting part of the Energy Community (EC) since 2010, working with other members to create a stable and single regulatory framework and energy market that provides a reliable energy supply and can attract investment in the electricity and natural gas sectors.
In recent years, Moldova has successfully transposed most of the European Union (EU) Third Energy Package, but has not yet fully implemented transparent and competitive measures in both the electricity and gas sectors. The electricity wholesale market is not yet competitive, and the unbundling of all the electricity and gas transmission system operators must be completed. However, the implementation of energy efficiency and renewable energy measures is moderate to advanced, and Moldova surpassed its 2020 target of 17% for its share of renewable energy in gross final energy consumption by reaching 23.84% in 2019.
Energy utilities in Moldova are regulated by the National Agency for Energy Regulation (ANRE). ANRE was established in 1997 and has the authority to regulate and monitor Moldova’s energy sector (e.g., natural gas, electricity, thermal energy, renewable energy, petroleum products), water supply, and sewerage. Its main responsibilities are licensing, tariff setting and regulation.
With the support of the United States Agency for International Development (USAID), the Moldova Energy Regulatory Partnership aims to support further alignment with EU directives. NARUC is engaged with ANRE on both gas and electricity market reform. In addition to increasing ANRE’s regulatory capacity to oversee the energy sector, specific topics include:
ANRE also participates in NARUC’s regional initiatives, such as the Electricity Market Performance Initiative, the Europe and Eurasia Cybersecurity Initiative, and the Improving Service Quality through Investments Initiative.
Determining Gas Distribution Technical Losses
Technological consumption and technical losses in gas distribution tariffs have been an issue of dispute in the Moldovan gas sector for almost a decade. In 2020, through the dispute resolution process of the Energy Community, both ANRE and Moldova’s gas distribution company (Moldovagaz) committed to resolving technical losses in gas distribution tariffs as a matter of priority. In 2021, NARUC provided technical assistance on this subject by conducting a peer review of ANRE’s draft methodology for the calculation of technical losses. Following the peer review, the concept of the draft methodology was changed to focus on measured inputs, and the regulator reshaped the methodology to maximize the accuracy of its results.
Developing Gas Balancing Methodologies
ANRE has an obligation to transpose the EU Regulation No 312/2014 of 26 March 2014, establishing a Network Code on Gas Balancing of Transmission Networks, which is also known as Balancing Network Code (BAL NC). The BAL NC sets gas balancing rules, including network-related rules on nomination procedures, imbalance charges, and more. In 2021, NARUC held a webinar series on natural gas balancing rules, which are key to furthering harmonization with the EU and giving network users the certainty that they can manage their balance positions in different balancing zones in an economically efficient and non-discriminative manner.
During the series, participants learned about key principles for commercial gas balancing and discussed final drafts of methodologies for calculating natural gas daily imbalance charges and neutrality charges to be applied in Moldova. As a result, ANRE is now better able to develop the necessary rulesets to facilitate gas trading across balancing zones, which will contribute to developing market liquidity.
Electricity Wholesale Market Formation
In 2021, NARUC held a webinar series designed for ANRE and Moldelectrica, which is the operator of the transport system for Moldova. It covered key issues related to electricity market formation and increasing regulatory capacity, including risk management methods for market operators and load profile calculation methods. During the series, NARUC experts from the U.S. and the Republic of Georgia discussed topics such as increasing creditworthiness, defining load profiles, and the responsibilities of market operators in terms of market clearing.
The lessons that participants learned from the webinar series on risk management will aid them as they work to ensure that market operations are provided without unreasonable financial risk on either the market operator or the market participants. Additionally, by learning how to calculate load profiles for settlement purposes, participants will have the tools to introduce further competition in the retail sector through both increasing the number and volume of the retail portfolios and increasing liquidity.
Electricity Installation and Siting Supervision
In 2019, ANRE assumed new responsibilities with regard to the oversight of energy utilities and installations. With this in mind, it seeks to gain knowledge on how to best exercise its supervisory authority over electrical installations, and is also required to establish a series of norms and regulations in this arena. Leveraging the experience of expert volunteers, in 2021 NARUC shared U.S. best practices to support the supervisory work of the regulator in processing siting applications, defining and enforcing protection zones, using international standards to prevent deviations, violations, accidents, electric shocks, and other related subjects. Following this exchange, ANRE expressed that the information provided was very useful, and asked for further assistance in the form of sharing international best practices.
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Project Dates:2002-2004; 2010-2016; 2021-Present
National Agency for Energy Regulation of Moldova (ANRE)
 “Energy.” International Trade Administration. https://www.trade.gov/country-commercial-guides/moldova-energy
 “Moldova Energy Profile.” International Energy Administration. https://www.iea.org/reports/moldova-energy-profile
 “Moldova Annual Implementation Report.” Energy Community. 2021. https://www.energy-community.org/implementation/Moldova.html
 “Moldova Energy Profile.” International Energy Administration.