Thursday 26 September 2019

EU grants €40m for Moldova-Romania power link

EU grants €40m for Moldova-Romania power link

The EU is providing a €40 million (£36m) investment grant for Moldova to be able to connect its electricity network with Romania.

It will co-finance the construction of a 600MW converter substation in Vulcănești, being developed by Moldova’s public utility Moldoelectrica.

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) previously provided a €160 million (£142m) loan and the World Bank committed $70 million (£57m).

The investments will also support the construction of a new 400kW high-voltage overhead line between Vulcănești and Moldova’s capital of Chisinau, as well as the expansion and upgrade of associated substations.

According to the EBRD, Moldova currently relies heavily on a power plant fuelled by natural gas, oil and coal and on electricity imports from Ukraine for up to 80% of its power supply.

The new interconnector that will be linked to the Romanian electrical network is expected to considerably enhance the stability and reliability of Moldova's electricity supply when completed in 2024.

Natalia Gavriliță, Finance Minister of Moldova said: “This joint financing operation has been designed as an ambitious and comprehensive energy development project whose overall objective is to increase capacity and improve reliability of the power transmission system in the Republic of Moldova.

“I am delighted to witness the Government of Moldova making a strategic decision to interconnect asynchronously with Romania, as the optimal solution to resolve the security of supply issue.”

Written by

Bruna Pinhoni

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