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How much renewable energy is there in Moldova and how much can be?


https://www.ipn.md/en/how-much-renewable-energy-is-there-in-moldova-and-how-7966_1101596.html

The Republic of Moldova consumes 4 million MWh of electricity annually. Households account for 45% of this amount, while the industry for only 15%. Such consumption structure generates peak consumption of about 700 MW in the morning and evening, when everyone prepares for a working day or returns home and plugs in all the appliances they may need. Instead, at night consumption drops to 180 MW.

Moldova cannot integrate into the energy system more wind energy than the minimum consumption at night and more solar energy than the maximum consumption during the day, reads an article of the Ministry of Energy, which is quoted by IPN. On June 1, 2022, Moldova introduced the European market rules, which require balancing the electricity grid by a mechanism that balances unplanned fluctuations in energy production or electricity consumption.

Owners of photovoltaic panels deliver more energy to the grid in summer, when there is more sun. In winter, when less is generated, the necessary amount is consumed from the universal service provider with which a contract had been signed, for example Premier Energy. Similarly, they produce more electricity than they consume throughout the day, and in the evening and at night they consume from the grid. This way, they use the network as an accumulator, but the network costs, for the operation and maintenance of the so-called battery, are paid by all other consumers.

The mechanism is called net metering and was applied at the initial stage to encourage self-generation, but not as a business, but only to cover own consumption. Now, all the member states of the European Union are switching over to another system, net invoicing. After January 1, 2024, households and companies that will install photovoltaic panels for their own consumption will operate according to the new system. Net invoicing will enable to cover grid transmission, distribution, supply and balancing costs, the balancing energy being sometimes up to 5 times more expensive. Those who will have installed panels by December 31, 2023 will benefit from net metering by the end of 2027.

In Moldova, the state has three support mechanisms for green energy producers, guaranteeing the purchase of surplus energy delivered to the grid and thus helping them recover their investments. This is net metering, which will be replaced from January 1, 2024 by net invoicing – valid for small producers with installations for their own consumption. There will be a fixed charge for 15 years, for parks and plants up to 1 MW photovoltaic or 4 MW wind, and a fixed price, also for 15 years, in the case of parks and plants larger than 1 MW photovoltaic or 4 MW wind - capacities awarded through auctions. The launch of tender contests for large capacities is planned for the first half of 2024.

Due to limitations related to the consumption structure, renewable energy generation capacities are capped. Thus, 105 MW were allocated for wind energy, and 60 MW for photovoltaic energy. These parks are to be commissioned by 2025.

In 2023, renewable energy represents only 6% of electricity consumption. 54% of it is wind energy, 34% is photovoltaic energy and by 6% is hydro energy and biogas energy.

Moldova has committed itself to increase the share of electricity produced from renewable sources to a minimum of 30% of electricity consumption by 2030.