Moldiva Case

Contents

Moldova 1

Moldova current Energy sector status 1

Oil 2

Exploration and Reserves 2

Production and Consumption 2

Gas 2

Reserves and Exploration 2

Production and Consumption 2

Renewable energy 2

Solar Energy 3

Biomass 3

Wind Energy 5

Hydropower 5

REPUBLIC OF MOLDOVA TARGETS IN RENEWABLE ENERGY 5

Moldova

Moldova, officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the west and Ukraine to the north, east and south. Moldova is one of the poorest countries in Europe, but the economic progress is being made. The population is 4.3 million, population below poverty line is 26%. Moldova is a member state of the United Nations, Council of Europe, WTO, and other international organizations. Moldova currently aspires to join the European Union, and has implemented the first three-year Action Plan within the framework of the European Neighborhood Policy (ENP).

Moldova current Energy sector status

The energy inefficiency is so widespread that the country uses 2.4 times more energy than the EU average. As Moldova imports 99% of the energy that it consumes, the impact on the economy is huge, and so are the consequences for the environment. European Bank for Reconstruction and Development EBRD with Moldova's sustainable energy financial facility or MoSEFF is working to improve energy efficiency, providing 20mln Euro credit line for unlading to private companies, in order to improve the current energy efficiency status by reducing energy consumption and CO2 emissions.

Moldovan energy sector status is characterized by four main elements:

* Significant difficulties within the national economy

* Lack of local energy resources

* Lack of funds coupled with the country's debt accumulated towards external gas suppliers (Russia) and electricity suppliers (Ukraine and Romania).

* Energy system inefficiency

Oil

Exploration and Reserves

The share of indigenous production in Republic of Moldova's oil and gas sector is very small. Oil reserves in Valeni, Cahul district are estimated at 0,5 mln tones. These reserves have been explored since 2004 to an amount of 14,500 tons of oil, at a maximum annual extraction rate of 8,000-9,000 tones. Extracted oil has been processed at the Comrat mini-refinery. Exploitation of these oil reserves is set to resume when a new concession agreement is signed.

Production and Consumption

Moldova does not have any oil refineries, so it is entirely dependent on imports of petroleum products to meet its needs. Almost all of these imports are from Russia, Romania and Ukraine. Oil products comprise about 40% of Moldova's energy imports.

Gas

Reserves and Exploration

In addition to its relatively small oil reserves, Moldova also has relatively small natural gas reserves that were estimated, in 1999, to be just under 900 billion cubic feet (bcf). Almost all of these reserves are located in the Viktorovskoye field in south central Moldova, which the Moldovan government wants to develop with the assistance of foreign investors. The goal is for the field to produce about 175 million cubic feet of gas per year.

Production and Consumption

The national natural gas system includes upstream gas pipelines and a network of connecting pipes of total length about 1,400 km, four compressor stations, 74 distribution stations and several low pressure distribution networks. Moldova is also an important gas transit country. More than 20 bln m3 of gas were transited through the Republic of Moldova in 2006.

Natural gas supply is highly uneven during the year; consumption during the cold season is 8-10 times higher than in the summer season. To cover seasonal consumption peaks natural gas stored at the Bogorodceni (Ukraine) natural