Energy Crisis Update: PM Addresses Parliament, Preparations for January Continue
December 17, 2024
Last Thursday, December 12th, we covered how Prime Minister Recean was asking parliament to declare a state of emergency. The assumption at that time was that the vote would go through Thursday but after a marathon session in parliament the motion was finally voted through at 12:20 am on Friday December 13th.
** Correction: The original version of this article referred to a “State of Emergency in the Energy Sector.” This was originally reported as the intention but later it became apparent that they declared a general State of Emergency giving the government broad powers - not only in the energy sector.
The day saw combative speeches in parliament as long hearings were first held on reports of election interference and hybrid attacks against Moldova by the Russian Federation. When business finally moved to declaring the state of emergency Prime Minister Recean addressed the parliament outlining the crisis, the stakes and what the government is planning to do.
I’ve chosen to print his speech here in full.1 Russia’s threat to cut off natural gas to Transnistria is a political choice to create a crisis. As such, in addition to there being a technical problem, there is also a political one where competing narratives will seek to explain to citizens what is going on. This statement is the fullest political statement about the impending crisis from the government to date and as such is worth reading in full.
Note: Throughout the speech I have inserted footnotes to help clarify certain points or provide context by linking past articles (recall - it is easier to read with footnotes on the website or in the substack app).
Following the speech text we will have additional updates on the energy crisis.
Prime Minister Dorin Recean to Parliament:
“There is no risk of us running out of gas and heat. However, consumers on the left bank2, our citizens, remain dependent on a single import source – Gazprom. According to contractual provisions, Gazprom is obligated to supply natural gas to the Republic of Moldova until September 30, 2026. As of today, Gazprom, which is contractually obliged to deliver at least 5.7 million cubic meters of gas per day to the left bank of the Dniester, conditions gas deliveries to the Cuciurgan Power Plant3 on a supposed debt for which there is no justification. They want the citizens of the Republic of Moldova to pay a $700 million fictitious debt as a condition for Gazprom to fulfill its contractual obligations.
In the middle of winter, Russia can leave the region in cold and darkness. This represents not only an economic risk but also a humanitarian threat, especially for the citizens on the left bank of the Dniester. Similarly, shutting down the Cuciurgan Power Plant creates risks for the electricity supply on the right bank as well.
The Kremlin’s war in Ukraine has completely changed the situation regarding the supply of electricity to the Republic of Moldova. If until 2022 we had access to a stable energy market, and Moldova balanced its electricity supply from Ukraine, today we have only two options: the Cuciurgan Power Plant and the high-voltage line Isaccea–Vulcănești–Cuciurgan–Dnestrovsk–Chișinău.4
The situation is aggravated by the continuous bombing of electricity production and transport infrastructure in Ukraine, particularly near the Moldovan border, which puts pressure on the energy system throughout the region.
For example, the Transnistrian region has already been directly affected by these attacks. The Metallurgical Plant in Rîbnița can no longer receive electricity because the station in Podolsk, Ukraine, through which the high-voltage line passes, was bombed. 2,500 people – I repeat, 2,500 employees of the enterprise – are now without jobs and income. If anyone still harbors illusions that Russia cares for or protects the people of the Transnistrian region, it must now be clear to everyone that they are being held hostage and used for Russia’s interests to destabilize Moldova and the region.
I have a message for both the ordinary citizens and the business community on the left bank of the Dniester. We will help, but we will not discriminate against citizens on the right bank. Energy resources must be paid for. Free gas was a bait, and now you see this yourselves. For its petty geopolitical interests, Putin’s regime wants to leave the people on the left bank of the Dniester in the cold, without income, without pensions, without salaries, and, once again, as hostages.
First, they waged a war on the territory of our newly independent country, then stationed troops, then blocked reintegration for decades, and now they throw these people into a crisis intentionally created. Why are they doing this? To destabilize Moldova. Moscow continues to use an information war to shift blame for the crisis they themselves provoke onto Moldova and Ukraine. I have already explained that this is false! But they will continue trying to convince us that we are to blame.
The Kremlin regime essentially wants our budget to be burdened with costs related to electricity, the humanitarian crisis on the left bank of the Dniester, and limited resources for pensions and social assistance. After this, the Kremlin’s lackeys in Chișinău will exploit the poverty and economic crisis during the next parliamentary elections. Now you can realize the cynicism and cruelty of this method to seize power in Moldova. They failed in 2022 and 2023 with their paid protests and provocations, they failed in 2024 with mass vote-buying. Now they will try a different approach – through destabilization.
In this entire context, we are also discussing with those on the left bank of the Dniester. What we will undertake is to avoid a large-scale humanitarian crisis in that region caused by these imperialist ambitions of the Kremlin. If Gazprom completely halts deliveries, the Cuciurgan Power Plant informs us that it has coal reserves that could cover the electricity consumption of the Transnistrian region for a very limited time, with significant risks to network stability.
In the absence of energy production at the Cuciurgan Power Plant, we will ensure Moldova’s electricity supply through the European ENTSO-E network, particularly from Romania. It is worth mentioning that Romania and other European states have also faced electricity deficits in recent months because much of the energy produced in Europe is covering the deficit caused by Russia’s bombings in Ukraine. These ongoing bombings, which intensify with the onset of the cold season, are destroying both production and transport capacities.
At present, Moldova’s electricity import capacity is limited to 315 MW through the interconnection with Romania. This is insufficient to cover peak-hour demand on the right bank. The vulnerability is also worsened by the fact that the Isaccea-Vulcănești power line crosses Ukrainian territory, making it susceptible to new attacks on Ukraine’s energy infrastructure.
Thus, even if the energy deficit is covered across the entire country, the price will increase, especially for residents on the left bank of the Dniester. There is a risk of a major crisis, and it would be irresponsible of you5 to politicize such a serious matter. Do not mix things up, and I urge you not to speculate. If the Kremlin wants gas in the Transnistrian region, then there will be gas.
The so-called transit issue is an artificial problem, intentionally created. There is no problem with gas transportation to Moldova, particularly the left bank of the Dniester. Gazprom must respect the contract, just as Russia must respect Moldova’s territorial integrity. There are sufficient routes and capacities for gas to reach our country.
Looking ahead, we must make this winter the last in which the Kremlin can influence our security. We have freed the right bank from gas blackmail, and we will free ourselves from energy dependence once the Chișinău-Vulcănești high-voltage line is completed. We are closely monitoring this project, which must be finalized and operational by the end of next year.
The government is solving the problems you failed to resolve during all the years you were in power. You can criticize, pretend you don’t remember how you sat idly in Moscow’s or St. Petersburg’s waiting rooms, or act like you forgot. But now we are talking about people and their safety and even their security. If we do not pay proper attention, the humanitarian crisis will escalate into a security crisis in the left bank of the Dniester, which in turn will affect the security of the state.
We are acting decisively, investing in our independence, and caring for every family in Moldova, regardless of which bank of the Dniester they live on. Yes, full independence takes time, especially when Kremlin agents, including those in this Parliament, have sabotaged our energy independence over the years. Yes, it requires will and costs, but we can no longer afford to be without light or heat in winter. We can no longer endanger the safety and security of the state and our citizens because of the Kremlin and your inaction.
We call on Parliament to give the Government the legal tools to act quickly and decisively to avoid all risks to state safety and security. The existing legal framework does not allow for rapid decision-making in such situations.
We anticipate the need for urgent decisions by derogating from the following laws in the following situations:
Law on Industrial Emissions 227/2022: allowing additional emissions from the import and use of coal.
Law on Payment Services and Electronic Money 114/2012: imposing the positive obligation to collect and make payments for citizens and companies on the left bank of the Nistru River that do not have the corresponding registrations on the right bank of the Nistru River with the constitutional authorities.
Law on medicines 1409/1997 and Law on pharmaceutical activity 1456/1993: for exceptions related to humanitarian aid in the medical field. Substances, equipment that are not in our nomenclatures, etc.
Law on Local Public Administration 436/2006 and Law on Administrative Decentralization 435/2006: to accommodate the needs of internally displaced persons. They are citizens of the Republic of Moldova and cannot be treated as refugees.
Labor Code 154/2003: in case some state employees from the public sector, but also private sector employees, should be urgently seconded to Ukraine – which is in a state of war – to carry out maintenance, repair or restoration work on electrical networks.
The law on the state budget: for cases of allocations of funds and aid from abroad. The aid will come specifically so that the Republic of Moldova can help its citizens on the left bank of the Nistru River.
Customs Code 95/2021 and Fiscal Code 1163/1997: import for humanitarian needs – without customs duties, VAT, excise duties, for humanitarian aid, from true friends of the Republic of Moldova. We have seen a lot of manipulation on the state of emergency – that it is being done for certain non-transparent purchases or inefficient spending of public money.
I provided the examples above specifically to clearly show why the state of emergency is necessary. What concerns us most is ensuring the supply of electricity to both banks of the Dniester so that our people can make it through this winter – which, as I mentioned, must be the last winter in our country’s history when we can still be threatened energetically.
During the state of emergency, the Commission for Exceptional Situations of the Republic of Moldova will issue decisions to resolve the real problems faced by citizens. I have outlined above a list of examples regarding the tools and legal framework necessary for the emergency situation we are preparing for.
The Government will ensure that the population is informed about the existing risks and the measures that will be taken. At the same time, it will have all the legal levers needed to prevent, mitigate, and eliminate the consequences that led to the state of emergency. The Government will always remain accountable to you, esteemed deputies, to subject every decision made and implemented to Parliamentary oversight in defense of the interests of Moldovan citizens.
Now! Let it be very clear to Russia’s agents of influence, especially those present in this parliamentary hall – the plan to destabilize Moldova will not succeed! The purpose of this destabilization is to consolidate military power on the left bank of the Dniester. Esteemed deputies, I am counting on your responsibility and support. Citizens will see today who, from this evening onward, stands with the Kremlin or with the people.”
56 MPs voted for the motion, 17 against and 3 abstained.
Energy Crisis Updates
Here is a roundup of the other top news related to the energy crisis of the past week:
Energy companies call on consumers to ration power. The nation’s largest power company Premier Energy has called on consumers to reduce energy in peak hours from 7 - 11 am and 6 - 11 pm. Specifically people are asked not to use energy intensive appliances in those hours, to take the stairs rather than the elevator, to turn off unneeded lights and not to use space heaters. They have also called on the government to reduce street lighting and lighting in parks. MoldovaGaz has also called on consumers to reduce household heating to conserve gas. MoldovaGaz also announced that they completed gas purchases for the winter and have 100% of the right bank’s (Moldova controlled territory’s) gas needs for the year.
MGRES may have trouble with coal. Sergei Obolonik, Transnistrian “Minister of Economic Development,” says that the power station has 2 coal units but that they are both badly worn out. In the case that one unit is forced to shut down for repairs it will take 10 hours to power up the second unit leading to prolonged blackouts.
Romania’s Energy Minister Sebastian Burduja pledged more support. He stated that "Our brothers beyond the Prut need Romania's help in the face of enormous pressure from Russia" and that Romania is exploring ways of increasing electrical supply to Moldova.
GazProm missed the deadline for reserving natural gas flows through alternate routes. December 16th was the last day for Russia to book transit capacity through the Trans-Balkan pipeline to supply Transnistria. It always possible that they can come back and book more space later at higher cost.6
Moldova’s is making huge strides in renewable energy. The country has 55% more renewable energy than a year ago and 6x more than 2018. Of the total 383 MW of production capacity, 206 are solar, 154 are wind. Solar capacity doubled in the first 9 months of 2024. Long term, private investment and forward leaning policies from the Ministry of Energy will pay substantial dividends in price reduction. Short term, without MGRES or some replacement, there is no base load to balance out demand as sun, wind and consumer consumption vary throughout the day.
News outlets are posting guides about how to deal with prolonged power outages. Newsmaker makes recommendations around candles, battery backups and more. Much of the advice deals with prolonged outages and the need to gather families in a single room for warmth. In the 1990s much of the country only had electricity for a few hours a day - so none of this is theoretical for most people.
The government is making preparations to evacuate the most vulnerable from Transnistria. Minister of Reintegration Oleg Serebrian emphasized that the preference is to help residents where they live but explained that plans are being made to evacuate intensive care units, orphanages and children’s homes, people with special needs, etc.
Text accessed on ZdG translated into English
Left Bank (of the Nistru River) = the Transnistrian region, Right Bank (of the Nistru River) = areas of Moldova controlled by the Chisinau government.
This is the large power plant in the Transnistrian region. We usually call it MGRES at Moldova Matters but its the same thing.
See my recent article about the infrastructure questions and the electrical transit lines map.
“You” here refers to the pro-Russian parties in parliament, the Communists, Socialists and former Shor party members.
If this is a game of chicken it wasn’t likely they would blink this early. If it isn’t a game of chicken then it’s just one more signal that a crisis is coming. Basically - read this how you will.