A Great Case for Hydroelectricity or Nuclear Energy

Imagine being in debt to Russia:

(Sidebar: this Russia.)

Moldova’s recent gas crisis, which left supplies in jeopardy for several weeks ahead of the winter until a new contract was agreed with Russia’s Gazprom to replace an expiring one, came as a surprise for many observers. Yet several unresolved issues had marred the Moldova-Russia gas relationship, notably accumulated debt, which played a major role in the crisis.

Moldova’s gas consumption is very small at about 2.9 billion cubic meters (bcm), of which right-bank Moldova consumes about 1.3 bcm, while the breakaway republic of Transnistria consumes the rest. Moldova has no gas production of its own, and its national gas company, Moldovagaz, imports 100 percent of the country’s requirements from Gazprom. Moldovagaz owns the gas transmission network, as well as local supply and distribution companies. Gazprom owns 50 percent of Moldovagaz, with the remaining shares split between the Moldovan central government (36.6 percent) and the administration of the Transnistrian region (13.4 percent). ...

Debt accumulation has been a constant feature of Russian-Moldovan gas trade throughout the post-Soviet period, with both right-bank Moldova and Transnistria running high debts, although the former’s debt has been significantly lower — and the payment discipline significantly higher — than the latter’s. By October 2021, Moldova’s gas debt stood at about $709 million (principal debt is about $433 million) for right-bank Moldova and about $7 billion for Transnistria. ...

The Moldovan crisis has demonstrated that no European supplier will sell gas at a price below hub level and that any country — especially where the EU acquis is being implemented — can be sure that Gazprom’s price will not be higher than the price set by the European hubs (which makes Gazprom a supplier like any other) and may be lower (which could make Gazprom a preferred supplier in countries with weaker economies).

The ongoing European gas supply crunch this winter has demonstrated the limitations of EU diversification efforts. It is important to recognize this and encourage countries in the shared EU-Russia neighborhood to create gas markets on which both Gazprom and non-Gazprom exporters can compete.

 

Or, rather, the unwillingness to explore options like nuclear power plants or other viable and practical alternatives. 

Moldova's energy plans here.