EU4Energy: Moldelectrica Power Transmission Network Rehabilitation

Project duration

2012-2020

Budget

€8 million
High-voltage transmission lines in the Republic of Moldova
High-voltage transmission lines in the Republic of Moldova

Brief Description

While the Republic of Moldova recognises the need to reduce energy losses and integrate with the energy market of Europe, overhauling the country’s state-owned electricity transmission system requires investment and expertise. The Moldelectrica Power Transmission Network Rehabilitation programme co-funded by the EU is facilitating this transformation through targeted grants and technical assistance.

Objectives

Why is this needed?

The Moldovan energy sector faces severe challenges in terms of a shortage of domestic primary energy sources and high dependence on energy imports. It experiences high losses due to poor infrastructure, a lack of investment, and a shortage of interconnectors with neighbouring countries.

The rehabilitation of a number of substations and transmission lines is therefore crucial to improve security in the transmission network and achieve greater energy efficiency. Replacing the existing fleet of transformers could lead to efficiency gains of around 30%, reduce CO2 emissions by 15,000 to 20,000 tonnes of CO2 per year, and replace the use of toxic oil (polychlorinated biphenyl) with non-toxic oil.

Actions in brief

How can this project help?

The project provides the financing and expertise necessary to overhaul the existing internal power transmission network of Moldelectrica, the state-owned transmission system operator of the country. This will facilitate future regional interconnections and develop trade in regional electricity. The EU is contributing €8 million in the form of technical assistance and investment grants. The remainder of the project cost, estimated at around €39 million, is provided by loans from the EU's Bank the European Investment Bank (EIB) and the EBRD.

Integration with the European electricity system will help cement Moldova’s association with the Energy Community Treaty as well as with the European Network of Transmission System Operators for Electricity (ENTSO-E).

What results have been achieved?

So far, thanks to the project, 30 km of overhead high-voltage lines have been reconstructed out of a total of 128 km still to be rebuilt through the project. Additionally, eight substations have been reconstructed and work is ongoing on another five transformer substations. The project is expected to finish at the end of 2020.

As a result Moldelectrica will introduce the latest technologies in the energy sector and bring European experience that will improve security of supply for consumers, lower the losses in the transport network, and improve the environment impact by exchanging old equipment.

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