Romania could buy the company “Rețele Electrice de Distribuție Nord” (RED Nord) from the Republic of Moldova, which distributes electricity in all localities in northern Moldova. The statement was made by the Romanian Prime Minister Marcel Ciolacu during a press conference.
The Government of the Republic of Moldova is seeking strategic investors for the state companies “Rețele Electrice de Distribuție Nord” (RED Nord) and “Furnizarea Energiei Electrice Nord” (FEE Nord), and Romania has “vast” experience in implementing European standards in the electricity sector.
This clarification was made by the Minister of Energy Victor Parlicov after Romanian Prime Minister Marcel Ciolacu declared that Romania could purchase RED Nord. Victor Parlicov mentioned that the authorities aim to make Moldova part of the EU energy market by 2029, before joining the community bloc, through the coupling of the energy markets of the Republic of Moldova and Romania.
Romanian Prime Minister Marcel Ciolacu stated at a press conference held on July 15 in Bucharest that the Romanian state could buy the supplier “Rețele Electrice de Distribuție Nord” from the Republic of Moldova.
Marcel Ciolacu made the statement in the context that, according to him, Romania produces more electricity than it consumes and does not have storage spaces.
“If we expand to the Republic of Moldova, which we are doing now, maybe we will buy Distribuție Nord, then the system will balance,” Marcel Ciolacu said.
Marcel Ciolacu, Prime Minister of Romania: “When we implement these storage parks, some on sulfur, some on water, I also spoke to hydro – that’s why I was at Vidra… All these things will lead to a system balance and a major reduction in the price (of electricity – ed.). We have an interconnection, one of the largest in Europe. For example, we have three times more than Spain. If we also expand to the Republic of Moldova, which we are doing now – maybe we will buy Distribuție Nord from the Republic of Moldova – then the system will balance. We have the best energy mix.”
At the same time, Parlicov mentioned on his Facebook page that “In principle, I don’t see anything new here (in Marcel Ciolacu’s statement – ed.), because I previously declared that the government is preparing the two enterprises (RED Nord and FEE Nord – ed.) for privatization. The government is looking for strategic investors for the two enterprises and welcomes the Romanian side’s interest in them. Romania is a member state of the European Union, with advanced experience in implementing European standards in managing the electricity sector. We already have a close collaboration with Romania and aim to become part of the European Union’s energy market by 2029, before becoming an EU member state, through the coupling of the energy markets of the Republic of Moldova and Romania.”
Additionally, Minister Parlicov emphasized that the privatization process of the enterprises is not managed by the Ministry of Energy and that the government is looking for strategic investors for the two enterprises and welcomes the Romanian side’s interest in them.
“Romania is a member state of the European Union, with advanced experience in implementing European standards in managing the electricity sector. We already have a close collaboration with Romania and aim to become part of the European Union’s energy market by 2029, before becoming an EU member state, through the coupling of the energy markets of the Republic of Moldova and Romania,” he added.
Attracting investors since August 2023
In August 2023, the Minister of Energy of the Republic of Moldova, Victor Parlicov, stated that there are companies interested in investing in electricity production in Moldova.
“We would like to attract strategic investors from Romania in this area. So far, a final formula has not been decided, but signing an international agreement is being considered,” said Victor Parlicov.
Protests against privatization
On Saturday, July 27, protests were organized in northern Republic of Moldova against the privatization of the RED Nord enterprise. People took to the streets at the call of the Victory Bloc, after the Romanian Prime Minister announced Romania’s interest in buying the electricity distributor. The demonstrations were marked by incidents.
Nothing official
The President of the Parliament of the Republic of Moldova, Igor Grosu, leader of PAS, says that “at the moment, there is nothing official to start a discussion.”
“Currently, there is no actual negotiation process. Romania or the Prime Minister obviously thinks in terms of interconnections. The interconnection on the gas dimension was a very good, strategic, correct investment and drastically reduced our dependence on gas pipelines coming from the east. Potential opportunities are analyzed in the same key. At the moment, there is nothing official to start a discussion,” mentioned Igor Grosu.
The Joint Stock Company RED-Nord was created in 1997, and in 2017 it was reorganized through a merger with Rețelele Electrice de Distribuție Nord-Vest. The company serves approximately 500,000 consumers in northern districts and ensures the distribution of 30% of the country’s electricity.