ANRE fulfil the commitments under the Third Energy Package

ANRE fulfil the commitments under the Third Energy Package

On August 7 2020, the Administration Council of ANRE has approved the draft of the Wholesale Electricity Market Rules.

 

By approving this set of rules ANRE fulfil the commitments of the Third Energy Package related to the electricity market undertaken by the Republic of Moldova under the Association Agreement with the EU and Moldova-EU Action Plan for 2020.

 

The Wholesale Electricity Market Rules market create the necessary grounds for the development of a competitive electricity market in the Republic of Moldova. The rules will contribute to the development of domestic sources of electricity production and the electricity networks for cross-border exchanges as well as foster regional and European electricity market integration.

 

The rules stimulate the electricity trading in organized markets by trading at lower costs, attracting additional market participants, increasing competition and forcing electricity suppliers to use different types of bidding strategies.

 

Thus, by developing the secondary regulatory framework related to the Law on Electricity, suppliers will be stimulated to identify new sources of electricity at competitive market prices. The diversification of electricity sources would lead to a higher competition which would benefit the final consumers and the national economy.

 

In the long-run the new electricity market model will achieve the following:

 

• Set a clear legal framework, facilitate the electricity trade, ensure the electricity system reliability, ensure the availability and the exchange of necessary data between system operators and the stakeholders, facilitate the integration of renewable energy sources, achieve a more efficient use of the electricity grid and higher competition that would benefit the final consumers;
• Create the necessary grounds to integrate the Moldovan market with regional and European electricity markets;
• Introduce a separate entity to manage the transactions on a short-term basis (the electricity market operator) in order to reduce the financial risks for market participants.

 

In order to implement competitive mechanisms in the electricity procurement process, the Electricity Market Rules set the standards for the electricity procurement procedures for universal service providers, last resort suppliers and system operators. But also, create the necessary conditions for the new suppliers to enter the wholesale electricity market and as a result greater competition.

 

The Electricity Market Rules shall be implemented in several stages:

 

1. Implementing the new electricity procurement procedure;
2. Launching the market for bilateral contracts, the notification rules, the rules of imbalance settlement, contracting electricity balancing according to the final and the transitional provisions of the Rules;
3. Creating the next day market, during the day market and the electricity balancing market according to the provisions of the Law 107/2016 on electricity.

 

The new draft of the Wholesale Electricity Market Rules is the result of a considerable effort made by ANRE, the electricity market participants and public authorities during the last few years.

 

An important role in approving the Wholesale Electricity Market Rules was played by the Energy Community Secretariat, which provided the necessary assistance and support during the last 3 years.

 

ANRE encourages the electricity market operators to make every effort in order to implement the electricity market rules and create the necessary grounds for a proper functioning of the wholesale electricity market.