The Ministry of Energy of Moldova and USAID signed a memorandum agreement on financing the construction of the 400 kV transmission line Straseni-Gutinas - the 3rd direct transmission line between Moldova and Romania, using a US grant.
In particular, this document was signed on April 30 by the Minister of Energy of Moldova, Victor Parlicov, and the Deputy Administrator of the United States Agency for International Development (USAID), Isobel Coleman. The memorandum of agreement signed between the governments of Moldova and the United States, represented by the Ministry of Energy of Moldova and USAID, provides for financing the construction of approximately 70 km of the Moldovan part of the new high-voltage transmission line 400 kV Straseni-Gutinas, with a total length of 190 km, which will become the third direct interconnection between Moldova and Romania and will increase the reliability of connecting Moldova’s energy system to Romanian and European power grids. The construction of the Straseni-Gutinas high-voltage transmission line will be financed by a US grant under the overall Moldova Conectată program, which is a larger USAID program to strengthen Moldova's energy security and independence by connecting Moldovan energy infrastructure with European energy infrastructure. The Moldova Conectată initiative aims to improve the country's energy security, promote economic growth, social well-being and Moldova's independence from foreign influence. In the long term, this high voltage line will provide access to numerous sources of renewable energy, facilitate their integration into the national system, ensure constant energy supply and create new jobs. It is planned that the construction of the Straseni-Gutinas power line will begin before the end of 2025, after a series of feasibility studies, and completion of construction is expected before the end of 2029. The Minister of Energy of Moldova, Victor Parlicov, noted that part of the US grant funds from a large total package of $300 million will be used for the construction of a new power line with Romania. He recalled that the US had previously approved a new package of grant assistance of $300 million to support the energy sector. At the same time, $80 million from this package was allocated to pay compensation for energy resources to vulnerable segments of the population of Moldova, and $220 million remains and will be used for investments in the country’s energy infrastructure, to improve the stability of the electricity system and expand domestic generation capabilities using cost-competitive renewable sources of energy. According to him, the construction of the Straseni-Gutinas power line will be the first infrastructure energy project that will be financed by a grant from the mentioned USAID package of $300 million. The Minister of Energy expressed confidence that after the completion of the projects for the construction of 3 new power lines, which will improve the unification of our country with the Romanian grid and ENTSO-E, Moldova will become part of the common European energy market in 2029, even before it officially becomes a member of the EU. According to Victor Parlicov, this is quite possible, taking into account the help of its partners. The head of the Ministry of Energy emphasized that the construction of the new Straseni-Gutinas power line will increase energy security and create conditions for ensuring economic growth of the country. He explained that companies will be able to plan their activities because they will have enough energy at reasonable prices, and they will know that there is no threat of interruption of electricity supplies, which was quite possible previously in a situation where Moldova was completely dependent on one player, an external partner, who could blackmail or manipulate it. Victor Parlicov emphasized that in such a situation it was difficult to expect large investments in the development of business and industry to come to the country if there were no reliable energy sources and there was 100% dependence on one player and its energy supply infrastructure. Isobel Coleman noted that the United States is ready to continue to support Moldova in the implementation of an extremely important project aimed at increasing energy security and energy independence of our country. “Together, our efforts will contribute to the construction of a high voltage line that will connect Moldova with the European electricity system,” she noted. In turn, US Ambassador to Moldova Kent Longsdon said that from addressing Moldova's immediate energy needs to accelerating the transition to green energy, the US-Moldova partnership is getting stronger. “And the presence of USAID Deputy Administrator Isobel Coleman here today to sign this memorandum of understanding is a symbol of the United States’ commitment to strengthening Moldova’s energy security,” he emphasized. As noted by the Ministry of Energy, US investments in the amount of $220 million are planned in the coming years to improve the stability of the power grid and expand the capabilities of domestic electricity production in Moldova using cost-competitive renewable energy sources. Better integration into regional electricity markets will facilitate Moldova's access to electricity at competitive prices and will enable energy exports to the European market in the future. This approach will allow Moldova to take an advantageous position in commercial relations with regional energy enterprises, will contribute to the economic sustainability of the country, improve the level of social life and create the necessary conditions for the development of the Moldovan economy.// 30.04.2024 – InfoMarket.
