ASSESSMENT OF LOCAL POWER GENERATION OPTIONS IN MOLDOVA, Progress Report, December 2019

The project aims to identify viable alternatives to the existing centralized power generation infrastructure, with a focus on increasing energy efficiency and reducing greenhouse gas emissions. Task 1, Assessment of existing Combined Heat and Power (CHP) plants and related district heating (DH) facilities, was initiated on May 31, 2019. The task involves evaluating the current state of existing CHP plants and DH facilities, with a view to identifying areas for improvement and potential upgrades. The assessment is expected to inform the development of a comprehensive plan for the modernization of Moldova's energy infrastructure. Task 2, Heat and Electricity Demand and Supply, was initiated on May 14, 2019. This task involves analyzing the current demand for heat and electricity in Moldova, with a focus on identifying areas where energy efficiency improvements can be implemented. The analysis is expected to inform the development of a comprehensive energy plan that takes into account the country's energy needs and resources. Task 3, Gas and Water Supply, was initiated on May 1, 2019. This task involves assessing the current state of Moldova's gas and water supply infrastructure, with a view to identifying areas for improvement and potential upgrades. The assessment is expected to inform the development of a comprehensive plan for the modernization of Moldova's energy infrastructure. Task 4, Land and Structural Issues, was initiated on April 24, 2019. This task involves assessing the current state of Moldova's land and structural infrastructure, with a view to identifying areas for improvement and potential upgrades. The assessment is expected to inform the development of a comprehensive plan for the modernization of Moldova's energy infrastructure. Task 5, Legal and Regulatory Consideration, was initiated on May 16, 2019. This task involves assessing the current legal and regulatory framework governing Moldova's energy sector, with a view to identifying areas for improvement and potential reforms. The assessment is expected to inform the development of a comprehensive plan for the modernization of Moldova's energy infrastructure. Task 6, Technology Options, was initiated on August 5, 2019. This task involves evaluating various technology options for power generation, with a view to identifying the most viable alternatives to the existing centralized power generation infrastructure. The evaluation is expected to inform the development of a comprehensive plan for the modernization of Moldova's energy infrastructure. The project team has completed technical screening of suitable technologies, including gas turbines and reciprocating engines models. The team has also completed evaluation basis for the Task 6 Technical Options and technical analysis and performance for Task 6 Technology Options. Additionally, the team has provided comments to the draft of the Moldova Electricity Market Rules (EMR) and anticipated changes to the Moldova law 107/2016. The project team has also developed a model for economic screening analysis of the Task 6 Technology Options and submitted drafts of the Task 3, 4, and 6 (Note) sections of the report. However, the draft of Task 6 report has not included economic analysis. The project team has faced a significant setback due to the passing of Dr. James Simpson, a key team member, on November 4. Dr. Simpson was in the process of modifying the Levelized Cost of Electricity (LCOE) model to perform the required Task 6 analysis for the Moldova Energy project. The loss has caused a delay in project delivery, and Lazar Bataklieva has taken over the responsibilities of the late Dr. Simpson. The project team is projected to complete the following activities during January 2020: finalizing the draft final report, revising the draft final report to incorporate USAID comments, and presenting the CLIN 01 study results in Moldova. The team is also expected to prepare a draft of the presentation and submit it for USAID review, plan meetings in Moldova in February, and submit a request for contract amendment to USAID to address revised project scope.