Moldova must be ready to buy all electricity from Ukraine - Dep. PM
CHISINAU. Aug 3 (Interfax) - Moldova must be ready to buy all of the electricity it needs from Ukraine, Deputy Prime Minister and Infrastructure and Regional Development Minister Andrei Spinu said Tuesday at a press conference on the authorities' action plan for the upcoming winter.
He said it is important to hold a dialog with Ukraine on electricity supplies so that "in the event of emergency circumstances we can buy electricity from them to cover consumption 100%."
However, he said Moldova would prefer to avoid the scenario of suspending electricity purchases from the Moldavskaya GRES power plant, which is located in the breakaway Transnistria region and owned by Russian power company Inter RAO .
"We would like to sign a long-term contract with Moldavskaya GRES, but we cannot manage to do this due to uncertainty regarding gas supplies to the left bank of the Dniester," Spinu said, referring to Transnistria.
Contracts with Ukraine have already been prepared in order to ensure uninterrupted supplies in the event that supplies from Moldavskaya GRES are suspended, he said.
The price has "yet to be discussed, taking into account the situation on the market," Spinu said. "We hope that the price will remain at the level at which we now buy 30% of our electricity needs from Ukraine."
Moldova currently buys electricity from Moldavskaya GRES, but contracts have been signed for periods of only one month since March due to the energy crisis and volatility of gas prices.
After Russia's Gazprom reduced gas supplies to Transnistria in May, the power plant warned Chisinau that it will only be able to supply Moldova with 70% of the required amount of electricity. Moldova has been making up the shortfall with electricity imports from Ukraine since May.
In August, Ukraine's Energoatom and Ukrhydroenergo are supplying Moldova with 30% of its electricity, with Energoatom supplying 20% and Ukrhydroenergo supplying the other 10%.
Spinu said at the press conference that Moldova would like to sign a long-term contract for gas supplies from Romania.
"We would like to sign such a contract in order to ensure the country's energy security," he said, recalling that the subject of gas supplies was discussed during Moldovan President Maia Sandu's recent visit to Bucharest.
"There are no details about prices and volumes at this point. We are continuing to discuss this matter. In addition, already for this winter we intend to buy fuel oil, coal and firewood in Romania in order to secure various types of fuel in the winter period. In conditions of very high gas prices, switching the operation of combined heat-and-power plants to fuel oil could become a real alternative," Spinu said.
However, he said maintaining the gas contract with Gazprom will make it possible to secure a lower price, considering that in October the calculation formula changes. It will be 70% the oil basket and 30% spot prices for gas.
"We are considering three scenarios: reduction of gas supplies by 35%, reduction of supplies by 50% and the end of the contract with Gazprom. We are in favour of preserving the current contract, but we must also keep in mind certain risks. In any case, I want to assure everyone that Moldova will not be left without gas. The whole question is the price, but there will be gas, if not from Gazprom then from alternative sources," Spinu said.