Moldova’s Energocom opens landmark electricity transit route to Ukraine

Aura Sabadus

21-Mar-2023

LONDON (ICIS)–Moldova has reached another milestone opening a new transit route linking Ukraine to the EU.

Victor Binzari, director general of the state electricity and natural gas wholesaler Energocom, told ICIS that the company had carried out the first test for electricity exports from Romania to Ukraine on 18 March.

The company bought 1MWh on the Romanian electricity exchange OPCOM and transited it to Ukraine on Saturday.

Although the transit was done in test mode, Energocom plans to expand it. The company joined JAO, Europe’s single trading platform for cross-border transmission capacity rights, earlier in March.

By joining JAO, Energocom has now an opportunity to trade with many European companies, booking capacity for imports or transit into its market or to Ukraine.

EFET CONTRACTS

Binzari said Energocom was pushing to sign 15-20 master agreements developed by the European Federation of Energy Traders (EFET).

“Our intention is to cast the net wide and trade with as many European companies as possible,” he said.

“Right now we are looking to sign EFET contracts with companies in Bulgaria and Hungary,” he added.

“Last year, we bought electricity from the Ukrainian hydro producer Ukrhydroenergo. Now we wanted to test the opposite direction and export electricity. Right now, Ukraine has a surplus of electricity but it was important to test both directions in case there is a need to transit or import electricity later this year,” he said.

He said the test was also necessary to understand the regulatory and technical issues that may occur.

Binzari said Moldova already has seven EFET contracts for natural gas but would like to sign more in the upcoming weeks and months to ensure it can purchase more volumes from different sources.

Energocom was tasked by the Moldovan government to find and develop new sources and routes of electricity and gas supplies in a bid to break the country’s dependence on Russian deliveries.

In less than year, the company managed to tighten up links with Ukraine by increasing injections in local storage facilities. It also started buying natural gas on Ukraine’s borders with EU neighbouring countries and has also been storing gas in Romania, which it can import in case of high demand.

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