The European Bank for Reconstruction and Development (EBRD) has awarded a $20m loan to Moldova to modernise its power sector, especially its transmission network. The EBRD loan will be used to part-finance the design and rehabilitation of a number of substations, transformers and transmission lines, which will enable Moldelectrica to improve the efficiency and reliability of its transmission network.
Moldova is almost completely dependent on imports of primary energy (natural gas) for electricity generation and security of supply is a key concern for the country’s power sector. The Moldovan transmission network is connected to Ukraine and Romania and strengthening links with the European electricity system is one of the country’s high priorities. While there has been progress in liberalisation of Moldova’s power sector, due to lack of investment the power infrastructure remains in urgent need of rehabilitation and upgrade works. Additionally, the project will benefit the existing interconnections with Romania and will help create the necessary infrastructure for future potential interconnection to the European network.