Group of Observers publishes report on Moldova’s 2020 procurement of electricity

The 2020 electricity procurement process in Moldova showed no improvements compared to previous years. Suspended for three months due to the covid-19 pandemic, the procurement procedure resulted again in JSC Energocom winning all five parallel tenders (organised by the transmission system operator, the two distribution system operators and the two suppliers of universal service and suppliers of last resort).

The Group of Observers notes that the additional conditions imposed this year could not have been fulfilled by Ukrainian tenderers and small Moldovan producers. On the one hand, certain provisions from the Law on Electricity were interpreted as imposing an obligation to have one winning price and thus only one source for 100% of the tendered electricity quantities (including balancing electricity). On the other hand, this year’s tenderers were requested to provide a letter of support from SE Moldelectrica confirming compliance with power system stability principles. Absent clear cross-border capacity rules for the Ukrainian-Moldovan interconnection, it is unclear whether Ukrainian tenderers could have obtained such a letter.

Looking forward, the Group of Observers salutes the entry into force of a new procurement procedure as of 1 January 2021. However, it also warns that, if rules on cross-border capacity allocation and compensation for unscheduled electricity flows are not implemented also by 1 January 2021, next year’s procedure will bring no improvements. The Group of Observers urges all stakeholders involved to work together and ensure that the 2021 procurement procedure will be a fair, non-discriminatory and transparent one.

The 2020 procurement procedure was monitored by a Group of Observers led by the Energy Community Secretariat, and composed of representatives of the Moldovan regulator ANRE, the Delegation of the European Union to Moldova and the EU High Level-Advisor for Energy.