To the Prime Ministe rNatalia Gavrilița
OPEN LETTER
Dear Ms. Prime Minister, Natalia Gavrilița,
I am, as a foreign investor,writing to you becauseI have reached total disappointment in the law’s and right’s respectingin the Republic of Moldova and I amnow on the verge of bankruptcy of the business that I developed in your country.
I came to the Republic of Moldova from Poland in 2016. Having more than 10 years of experience in the renewable energy sector and seeing enormous potential in the Republic of Moldova, I started a business here in this sector. Having a company in Poland that producing electricity from renewable sources and another company that deals with the installation and commissioning of wind turbines, I know the specifics of this business in every country in Europe practically. Studying the energy potential of the Republic of Moldova in terms of the wind technologies’ implementation and examining the local legislation in the energy sector, I was excited to start a business in this field in the country, where the market needs local energy in large quantities.
But from the beginning I was disappointed, by the fact that the guarantees provided by the laws, which correspond to those in the European Union, but in some aspects are even more progressive, are not respected by the state institutions. I am one of the several dozen people who in 2018 were "fooled" by the ANRE management by the approving of the 15-year state-guaranteed tariff. They "killed" this sector with a tariff, which does not even cover the recovery of investments. This became possible by changing the methodology at the last-minute, already when all the documents were submitted and the 4 wind turbines, our investment, were already installed and working.
Even at that time I wanted to sell the business and leave Moldova like investor, but seeing the enthusiasm of other colleagues from Moldova and their firm confidence that will come the times when the producers, who ensure the national energy independence, will be supported here in this country, I decided to "be a fighter" and arm myself with patience in the searching for solutions.
When really European visionary persons came to lead the country, who promised to transform the Republic of Moldova into a truly European country, I hoped that the sector of renewable energy production would enjoy more support from the state, and we, who invested but were "be scammed", will be noticed and motivated to share our experience and to expand the business. Thus, the Republic of Moldova would also have gained more energy independence. But it was not to be!
Since the beginning of 2022, we are going through a real ordeal and instead of talking about how we are developing business in one of the strategic sectors, we have reached the brink of bankruptcy. The epic began with the signing of the contract with a state-owned enterprise JSC "FEE-Nord". A more negligent attitude by the management of the company towards us, as a production company, I have not had in all my practice of activity in energy sector. This was followed by a period of total uncertainty and lack of clarity regarding the implementation of the new electricity market rules. I was shocked by the total lack of cooperation between the state institutions, the bodies responsible for the implementation of a fundamental norm for a strategic and vital sector for every country, and the business environment, which must to work based on the norms that must being implemented. The climax was the introduction of the new rules without the period of real testing, simulations and without a well-established normative base.
The haste and superficial involvement of the generality state institutions caused the necessity for several interventions by the Emergency Situations Commission that you lead. But here too, many decisions that had a major impact on the sector were taken without a multilateral analysis of the effects on market participants.
I will also give you an example: I personally produced over 200,000 kWh of renewable electricity in June 2022, which was paid by SA "FEE-Nord" with 0.88 lei/kWh. But I buy balancing energy at an average price of 4.50 lei/kWh! As a result of the lack of all the necessary instruments for the proper functioning of the electricity markets, which are guaranteed by law, as a result of the activity in June I am indebted to the state... How is this possible? What business are we talking about?
I was already examining the possibility of selling the electricity produced in Moldova to my company in Poland, to ensure the recovery of the investments made. But here too the Commission for Exceptional Situations intervened by banning exports, without offering any alternative solutions.
To say I reached the brink of despair is an understatement. I am totally disappointed! I came to the Republic of Moldova, invested a lot of money, created jobs, paid taxes, and now I am forced to close the business. I want to leave the energy sector of the Republic of Moldova and will urge others to do the same. Is this aim what the Chisinau Government wants? Is this the promised favorable investment climate?
I joined the Japanese Strike initiated by several producers of electricity from renewable sources. We have all been knocking on the doors of dignitaries for months, but we are not heard. And it seems very strange to us why the Moldovan state does not want to procure local energy, at a much lower price than it procures energy from outside the country? Where, in what country, have you seen something like this before? Kill local production in favor of overpriced imports? Does this mean European integration for the Republic of Moldova? Don't you want the country govern by you to become energy independent, and the citizens to pay less for the electricity they use?
Dear Ms. Natalia Gavriliță, I still hope that the local renewable energy producers will be heard by the decision-makers in the Republic of Moldova and, together we will find solutions to the problems arising in the sector in the narrowest possible terms. Each day of waiting brings enormous losses, which will not be recovered in a short time.
Personally, with my colleagues, we are open to coming with the experience and practices already tested in the EU, so that we can continue our activity here too, and all those who came to the Republic of Moldova as investors from the EU, could recommend this market as safe and based on truly European principles.
With respect,
PANKA JACUB
Administrator ”WINDMD-JT” LLC
Investor from Poland
05 December 2022
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