...

Moldova inviting Azerbaijan to invest in its energy sector - Carolina Novac (Exclusive interview)

Oil&Gas Materials 3 June 2025 11:14 (UTC +04:00)
Moldova inviting Azerbaijan to invest in its energy sector - Carolina Novac (Exclusive interview)
Laman Zeynalova
Laman Zeynalova
Read more

BAKU, Azerbaijan, June 3. Moldova would consider the prospect of securing long-term gas contracts with Azerbaijan as a possible option, Secretary of State at the Moldovan Energy Ministry Carolina Novac said in an exclusive interview with Trend on the sidelines of the Baku Energy Week.

“We are looking forward for longer term collaboration with Azerbaijan. We would like to get closer in terms of our energy relations, in terms of gas supplies. I also proposed the Azerbaijani side to consider investments in Moldova. My visit is meant to give a big and positive signal to the Azerbaijani partners that Moldova is eager for investments, is eager to strengthen this collaboration. Evidence stands the remarkable transformation we have seen in the energy sector in Moldova, in terms of both diversification of sources and routes, Azerbaijan’s state oil company SOCAR is welcome to follow all the new auctions - second renewable tender, balancing market and gas tender acquisition, to engage in discussions with Energocom, consider stepping in the market and reflect this collaboration through either a long-term contract or participating in these auctions,” she said.

Novac pointed out that Azerbaijan has proven already to be a reliable partner and that Moldova can further on solidify its energy ties.

“Moldova is interested into a collaboration for gas purchases with Azerbaijani suppliers through its state-owned company Energocom. But such discussion has to be of course addressed in a technical-business format between the companies. We believe that as the transmission system operators for gas in the region coordinate commercially and agreed over a unified tariff structure, this will create a favorable environment for finalizing long-term agreements and reduce the costs and will further provide more liquidity over these pipeline. To address this, Moldova was actively engaged in such discussions with our regional partners to explore the possibility of reducing these tariffs. Our objective from the start was to facilitate more competitive access to natural gas from Azerbaijan or other suppliers and enhance overall energy security for the region,” said the state secretary.

She noted that Moldova has demonstrated its strategic commitment to the region being one of the main users of the Greece-Bulgaria interconnector at that start of its operation and managed to test and benefit from LNG imports at Alexandroupolis.

“Moldova has proven the viability of the vertical gas corridor by transporting gas to Ukrainian underground storage. Natural gas remains vital for Moldova’s energy security, especially as a balancing source for its growing renewable energy capacity. Azerbaijan has the potential to play a pivotal role in Moldova’s strategy to diversify supply routes and deepen regional energy cooperation, particularly through the Southern Gas Corridor and the Trans-Balkan pipeline,” said the secretary of state.

She noted that Moldova does not import any natural gas from Russian Federation since 2022 and recently has passed a Governmental Decision over a full phase out of all Russian energy sources.

“This irreversible shift has been supported by expanded interconnections with Ukraine and Romania, the liberalization of the domestic gas market, and the entry of multiple international suppliers. In this context, Azerbaijan, as a key supplier to the Southern Gas Corridor, offers a valuable and strategic source of non-Russian gas. By leveraging the reverse flow capabilities of the Trans-Balkan pipeline—enhanced since 2020 and currently undergoing further upgrades—Moldova can directly access Azerbaijani gas through interconnections with EU markets in Greece and Bulgaria,” she said.

Novac pointed out that Azerbaijani natural gas can support a competitive and diversified supply environment.

“Azerbaijan can support Moldova’s diversification strategy by supplying competitively priced natural gas through the Southern Corridor, reinforcing Moldova’s access via the Trans-Balkan and Vertical Corridors, and strengthening regional cooperation in line with EU standards and market liberalization goals,” the state secretary explained.

Moldova’s interest in Black Sea Cable Project

She pointed out that Azerbaijan has a fantastic vision on renewables and we also would like to be part of this collaboration.

“We are interested in participating in the Black Sea Cable Project. The secretariat of this project is in Bucharest, and we have fantastic collaboration with Romanian partners. We want to understand first and foremost what procedures we have to follow,” said Novac.

The state secretary went on to add that Moldova is committed to a balanced energy strategy that ensures both energy security and sustainability on its path to a green energy future.

“Over the past four years, Moldova has expanded its renewable energy capacity eightfold, recently launching auctions for 165 MW of photovoltaic and wind projects, with plans to include energy storage systems (BESS) by year-end to improve grid stability. On April 11, 2025, a Memorandum of Cooperation in the fields of energy efficiency and renewable energy was signed between the National Center for Sustainable Energy Development (IP CNED) and the Renewable Energy Agency of Azerbaijan. The signing took place during a working session of the Moldova-Azerbaijan Intergovernmental Commission.

The key areas of cooperation outlined in the Memorandum include:

- Exchange of information on legislation, studies, and other materials related to the promotion of renewable energy sources;

- Collaboration on research initiatives aimed at developing renewable energy technologies, improving energy efficiency, and creating innovative solutions;

- Sharing of knowledge and expertise regarding the implementation of energy-efficient technologies and applications, including battery technologies, hydrogen, and smart grid technologies,” she said.

Novac noted that despite strong progress in renewables and energy efficiency—especially in residential and public buildings—natural gas remains essential for local power generation and as a flexible balancing resource for intermittent renewables.

“Partnerships with countries like Azerbaijan are critical to securing stable, diversified, and long-term gas supplies, helping Moldova maintain uninterrupted energy delivery during the transition to greener sources. Moldova’s engagement with Azerbaijan through the Southern Gas Corridor aligns with European energy standards by supporting market integration, transparency, and the development of unified tariff structures. Ensuring commercial viability and sustainability of these supply routes, including collaboration on tariffs, will enable Moldova to meet EU energy security and environmental goals while maintaining reliable access to natural gas. Ultimately, Azerbaijan’s role supports Moldova’s dual priorities of energy security and decarbonization, fostering a resilient and sustainable energy system compliant with broader European frameworks,” she added.

Moldova’s energy transformation

Novac noted that over the past years Moldova has undergone a significant transformation of its energy sector.

“First and foremost, we do not consume any Russian gas since 2022. Also, we've tested for the first time the Trans-Balkan pipeline and used the Vertical Corridor. Moreover, the state-owned company Energocom got gas via the Interconnector Greece-Bulgaria (IGB). Likewise, at some point in 2022, we've been even one of the biggest users of the underground gas storage in Ukraine. In the electricity sector we are aiming to finalize the construction of the power line, which connects us to Romania. A huge win for us was the connection to the European continental grid on March 16, 2022, because that allows us to import electricity from Romania,” she said.

The state secretary noted that Moldova has fantastic results in the sphere of renewable energy.

“We have increased the capacities by eight times over the past four years. Now the challenge for us is to make sure that we maintain the flexibility, that we have a stable electricity sector. In parallel, we are also aiming to test by the end of this year the day-ahead and intraday markets. That will allow renewables’ producers to sell their electricity on this market. Another power line of 400 kV will be built with Romania, I would hope, by the end of 2027. By the end of 2028 we expect to be done with the transposition of the EU legislation in the energy sector,” the state secretary concluded.

Tags:
Latest

Latest