U.S. to allocate $130 mln to Moldova for constructing third power line to Romania

The United States will provide Moldova with $130 million for the construction of a high-voltage power line from Strasheny to Gutinash, which will connect the Moldovan and Romanian power grids, Moldovan Prime Minister Dorin Recean said on social media on Wednesday, https://interfax.com/ reads.   "The investment from the U.S. government will amount to $130 million and will thus cover the entire construction of the line, which will directly connect Moldova with Romania and the European network," he said.   Recean called the investment "an important step in ensuring the country's energy security."   The project aims to increase the stability of the national energy system, increase transmission capacity, and ensure a reliable electricity supply.   The length of the new power line from Strasheny (Moldova) to Gutinash (Romania) will be 190 km. Along with the projects to build power lines to Romania - Chisinau-Vulcanesti and Balti-Suceava - it is part of the national strategy to integrate with the continental European energy system ENTSO-E.   The Strasheny-Gutinash power line project will not only strengthen Moldova's electrical grid but also "create significant opportunities for U.S. firms by enabling Moldova to adopt and utilize U.S. technologies", the U.S. Embassy in Chisinau said.   "It will unlock potential across multiple sectors, including transmission infrastructure, grid optimization technologies, information and communication technologies (ICT), nuclear power, and battery storage. Through the targeted support of our $130 million initiative, the U.S. Government aims to maintain its regional leadership in critical industries such as gas, nuclear energy, and grid optimization technology. Increased investment opportunities for American businesses in Moldova advance both countries' economic interests and strengthen our bilateral relationship" the embassy said in a statement.   In the spring of 2024, the Moldovan Energy Ministry and the United States Agency for International Development (USAID) signed a memorandum of understanding regarding the financing of the 400 kV Strasheny-Gutinash power line - the third interconnection line with Romania.   Currently, Moldova is building the first 400 kV power line with Romania, Chisinau-Vulcanesti, with a length of 158 km. Full integration of Moldova's electricity market with the EU is planned for 2027.   External electricity supply to right-bank Moldova is carried out via the 330 kV overhead power line Podolsk-Rybnitsa, which is classified as an inter-system line between the energy systems of Moldova and Ukraine. This power line passes through the territory of Transdniestria, which according to Moldovan authorities makes the system vulnerable to technical failures or a sudden increase in demand from Ukraine.