Republic of Moldova: National Energy Policy Information for Regional Analysis
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UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE Energy Efficiency 21 Programme Republic of Moldova: National Energy Policy Information for Regional Analysis Project Number: ECE/GC/2008/033 Project Title: Financing Energy Efficiency Investments for Climate Change Mitigation Submitted to: United Nations Economic Commission for Europe Submitted by: National Participating Institution / Climat e Change Office under the Ministry of Environment September, 2009 TABLE OF CONTENTS TABLE OF CONTENTS.................................................................................................................................2 1. KEY ENERGY SECTOR DEVELOPMENTS .........................................................................................3 1.1. ENERGY SUPPLY.........................................................................................................................................3 1.1.1. ELECTRICITY PRODUCTION TECHNOLOGIES ............................................................................................3 1.1.2. HEAT PRODUCTION TECHNOLOGIES.........................................................................................................7 1.2. ENERGY MARKETS.....................................................................................................................................9 1.2.1. ELECTRICITY MARKET .............................................................................................................................9 1.2.2. ELECTRICITY TARIFFS ............................................................................................................................10 1.2.3. GAS MARKET..........................................................................................................................................11 1.2.4. GAS TARIFFS...........................................................................................................................................15 1.2.5. HEAT MARKET........................................................................................................................................16 1.2.6. HEAT TARIFFS.........................................................................................................................................16 1.3. ENERGY EFFICIENCY ...............................................................................................................................17 1.3.1. ENERGY INTENSITY ................................................................................................................................17 1.3.2. ENERGY LOSSES FROM ELECTRICITY, GAS TRANSMISSION AND DISTRIBUTION GRID .........................17 1.3.3. ELECTRICITY AND GAS METERING.........................................................................................................18 1.3.4. DISTRICT HEATING .................................................................................................................................19 1.3.5. SPECIFIC OBJECTIVES IN THE FIELD OF ENERGY SAVING AND INCREASING ENERGY EFFICIENCY .......19 1.3.6. ENERGY EFFICIENCY MARKETS .............................................................................................................20 1.4. RENEWABLE ENERGY SOURCES .............................................................................................................21 1.4.1. DEPLOYMENT OF RENEWABLE ENERGY SOURCES.................................................................................21 1.4.2. RENEWABLE ENERGY SOURCES MARKET..............................................................................................28 1.4.3. ESTIMATED POTENTIAL FOR RENEWABLE ENERGY SOURCES ...............................................................28 2. PROGRESS OF REFORMS IN ENERGY SECTOR............................................................................32 2.1. LEVEL OF PRIORITY GIVEN TO COUNTRY’S ENERGY POLICY.............................................................32 2.2. LIBERALIZATION OF ENERGY MARKETS ...............................................................................................34 2.3. INVESTMENTS IN THE ENERGY SECTOR .................................................................................................35 2.4. FINANCIAL ENVIRONMENT IN ENERGY EFFICIENCY AND RENEWABLE ENERGY POLICIES..............37 2.4.1. INSTITUTIONAL, LEGAL, REGULATORY AND POLICY FRAMEWORK ......................................................37 2.4.2. NATIONAL PRIORITIES FOR MEETING THE DEMAND FOR ENERGY SOURCES ........................................39 2.4.3. NATIONAL PRIORITIES FOR HEAT SUPPLY .............................................................................................43 2.4.4. NATIONAL PRIORITY AREAS FOR ENERGY EFFICIENCY.........................................................................46 2.4.5. NATIONAL PRIORITY AREAS FOR RENEWABLE ENERGY SOURCES .......................................................48 2.4.6. INTEREST FOR RECEIVING EQUITY AND MEZZANINE FINANCING .........................................................49 2.4.7. BARRIERS TO FINANCING ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES .........................49 2.4.8. ESCOS ....................................................................................................................................................50 2.4.9. BANKING SECTOR...................................................................................................................................51 2.4.10. CONCLUSIONS ON THE STATE OF FINANCIAL ENVIRONMENT FOR PROMOTING EE AND RES ............52 3. ENERGY EFFICIENCY AND CDM PROJECTS IMPLEMENTATION..........................................52 3.1. ENERGY EFFICIENCY PROJECTS.............................................................................................................52 3.2. CDM PROJECTS .......................................................................................................................................56 3.3. STAKEHOLDERS INVOLVED IN EE, RES AND CDM PROJECTS IMPLEMENTATION ............................57 REFERENCES ...............................................................................................................................................59 LINKS .............................................................................................................................................................62 ANNEXE 1: ENERGY CONSUMPTION INDICATORS AND ENERGY INTECITY ........................63 2 1. KEY ENERGY SECTOR DEVELOPMENTS 1.1. Energy Supply 1.1.1. Electricity Production Technologies The energy system of the Republic of Moldova includes one large Thermal Power Plant (TPP) lo- cated in the Transnistrian Region (Administrative Territorial Units on the Left Bank of Dniester River); 3 municipal Combined Heat Power Plants (CHP); 9 CHP plants beside sugar factories; and 2 Hydroelectric Power Plants (HPP). Table 1 shows the installed capacities of the power plants in the Republic of Moldova. As per information above, the country has the following power generating sources: CHP-1 and CHP-2 Chisinau; CHP-North Balti; Moldovan Thermal Power Plant in Dnestrovsc (MTPP); and two HPP in Dubasari and Costesti. The total installed capacity of the country’s power stations are about 3000 MW, but there are used only about 1600 MW. The available capacity of hydroelectric power plants constitutes around 40 MW. Sugar factories power plants have an installed capacity of 97.5 MW and are operated mostly seasonally to cover energy needs at the stage of processing sugar beet. Table 1: Characteristics of Power Plants in the Republic of Moldova Installed electric Installed thermal Year of Power Generation Unit Fuel capacity, MW capacity, Gcal/h construction CHP-1 Chisinau 66 254 gas, HFO 1951-1961 CHP-2 Chisinau 240 1200 gas, HFO 1976-1980 CHP-North, Balti 28.5 200 gas, HFO 1956-1970 9 CHP of sugar factories 97.5 gas, HFO 1956-1981 HPP Costesti 16 0 (hydro power) 1978 HPP Dubasari* 48 0 (hydro power) 1954-1966 Moldovan Thermal Power Plant (MTPP)* 2520 0 Gas, coal, HFO 1964-1982 Source: * - left bank of Dniester River CHP-1 from Chişinău was built during 1951-1961. It has an installed capacity of 66 MW, the avail- able being about 40 MW. The main fuel is natural gas, and the reserve one is heavy oil. The wear degree of the equipment is about 60%. CHP-2 Chişinău has an installed capacity of 240 MW, and available one being of 210 MW; it was built between 1976 and1980. The main fuel is natural gas, and the reserve one is heavy oil. The wear degree is of about 50%. The CHP North-Bălţi, with an installed capacity of 28.5 MW and an available power of 24 MW was built between 1956 and 1970. The main fuel is natural gas, and the reserve one is heavy oil. The wear degree of the equipment is about 60%. Technological process at CHPs is based on the classical cycle of steam turbines. At the CHPs are used steam and hot water boilers of Russian production: steam boilers made at the factories from Barnaul and Taganrog during 1951-1993, type TC-35GM-50, TGM-96B, DKBR-6.5/13, BKZ- 75/39-GM and BKZ-120-100GM; hot water boilers made during 1971-1988 at the factories from Barnaul and Belgorod, type PTVM-100 and KVGM-180, and steam turbines made at the factories from Kaluga, Breansk and Saint-Petersburg during 1957-1995, type R-12-35/5M, PT-12/15- 35/10M, PT-80/100-130/13, R-6-90-37, R-27-90-1.2 and R-10-35-1.2. 3 According to the specific fuel consumption level, technologies used in the Republic of Moldova are not as efficient as the similar world