The greatest pressure in the energy sector of Moldova in 2022 will be caused by rising gas prices, and the authorities will have to look for new solutions to improve energy security - IDIS „Viitorul”.
This opinion was expressed by energy policy expert Ion Muntean for the publication "Forecasts 2022", prepared by the Institute for Development and Social Initiatives. The expert emphasized that the energy crisis in the second half of 2021 hit gas consumers in Moldova hard. The sharp rise in prices in regional markets, the signing of a new gas contract with Gazprom will have a significant impact on the local natural gas and electricity market, and will lead to a number of structural and functional consequences in this sensitive area in 2022. Among the expected notable events of this year, mentioned by the expert, is the opening of an office of the Energy Community Secretariat in 2022 in Chisinau in order to strengthen the competence and institutional capacity of the executive and regulatory bodies; conducting an external public audit in Moldovagaz. According to the expert, in 2022 the greatest pressure in the energy sector will be caused by rising gas prices. Speaking about the provision of compensations to consumers of gas and heat from the centralized system, Ion Muntean noted that it is necessary to improve this mechanism in terms of targeting the most vulnerable consumers. Thus, the resources allocated for 2022 totaling approximately 1.6 billion lei should be directed to the neediest consumers, and the amount of compensation for them should increase if there is a new price increase. The expert emphasized that the increase in natural gas prices will lead to a chain increase in food prices, in particular, this will affect everyday goods and building materials. Rising prices for basic energy resources will stimulate the search for investments in energy efficiency projects, both in the public and private sectors. “The priority in 2022 is to increase the capacity of renewable energy production, with the competent authorities granting the status of “eligible producers” to future producers in the field of renewable sources and approve tariffs for electricity generation. According to our estimates, from 2022 to 2025, the share of renewable electricity in the total electricity consumption in Moldova will increase by 20%,” the expert said. In his opinion, significant changes will also take place in terms of strengthening the security of gas supply. In this regard, amendments to the Law on Natural Gas have been initiated, according to which the supplier of last resort will be obliged to provide gas reserves equivalent to consumption during 2 winter months. However, according to Ion Muntean, this change will entail high costs for the purchase and storage of gas. In addition, delivery of these gas reserves in the summer of 2022 may not be possible, as it is currently assumed that natural gas prices will not fall sufficiently if strong demand for replenishment of reserves from large consumers in the region, depleted 2 years ago, continues. Another important event for the energy sector of Moldova in 2022, according to the expert, is the audit of the debt to Gazprom for the natural gas consumed on the right bank of the Dniester and the development of a phased plan for repaying this debt. In his opinion, the task of achieving a satisfactory solution to this problem within the established time frame in 2022 is unrealistic, so the time frame should be extended. According to him, also in the field of electricity supply in 2022, additional efforts will be made to implement the Electricity Market Rules, which may contribute to the entry of new suppliers, including from Ukraine. Moreover, in order to enhance the security of electricity supply, the government intends to diversify electricity imports from at least 2 suppliers. It is also planned to start work on accelerating the construction of the Vulcanesti-Chisinau transmission line, which will ensure the interconnection of Moldova through Romania with the European energy system. Ion Muntean expressed his conviction that the current energy crisis will lead to many changes in the structure of energy consumption, which will make it possible to try to identify new energy security solutions, viable alternatives to imported natural gas. Most likely, this trend will take place in agri-food companies, where alternative resources are available, as well as waste that could be used for energy purposes. “Another area for study could be the recycling of household waste for energy purposes. At the political level, we expect coincidences in the field of climate change and recent developments in the energy market in Moldova. Thus, even without strong incentives from politicians, businesses will increasingly be oriented towards alternative/renewable sources, following the aspirations of the EU. In 2022, Moldova will develop and adopt a comprehensive national energy and climate plan, which will focus on a balanced diversification of energy sources and increasing consumer resilience to energy crises,” the expert said. // 04.02.2022 – InfoMarket
