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Procedia - Social and Behavioral Sciences 149 (2014) 896 – 900

LUMEN 2014

A SWOT Analysis of Bio-Energy Production in Republic of

Moldova
Oxana Soimua,*
a
Bilbao, 48014, University of the Basque Country

Abstract

The key human concern of all times has been the energy in its twofold perception: as the necessary energy for human body that
could be achieved by feeding, and as the vital source for every economy, particularly, for production and living purposes
(electricity, fuels and so on). Besides all the currently well known challenges, these energy objectives are now facing an
additional problem - the climate change. The world is put in the position to choose between producing green energy at the risk of
a potential food crisis or continuing to explore fossil fuels and augmenting the greenhouse gas emissions at the risk of further
negatively impacting the environment.
Through the application of SWOT analysis, this work aims to showcase the impact that a rushed shift to bio-energy production
(for example the bio-ethanol) could have on Republic of Moldova’s economic and social systems. As such, it is considered
opportune to refer to a consistent body of literature that reveals those important risks this new energy trend could bring.
This work will prove why we should not make a “hurried” shift towards massive bio-energy production and instead, start with a
small share of bio-energy (bio-ethanol) production for the purpose of self-consumption in agriculture.

© 2014
© 2014 The
The Authors.
Authors. Published
Published by
by Elsevier
Elsevier Ltd.
Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Organizing Committee of LUMEN 2014.
Selection and peer-review under responsibility of the Organizing Committee of LUMEN 2014.
Keywords: Bio-energy; bio-ethanol; food security; Republic of Moldova

1. Introduction

In the Third Millennium, the world faces a number of pressing issues, such as, energy, global warming,

* Corresponding author. Tel.:+34-66-00-86-898

E-mail address: oxana.soimu@gmail.com

1877-0428 © 2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Organizing Committee of LUMEN 2014.
doi:10.1016/j.sbspro.2014.08.277
 Oxana Soimu / Procedia - Social and Behavioral Sciences 149 (2014) 896 – 900 897

economic, food and demographic issues, and Republic of Moldova (henceforth: Moldova) is very sensible to these
changes. So far, joining international agreements on environment (Ministry of Environment and Natural Resources,
2004) in order to prevent disasters due to human factor did not compel Moldova to be as responsible as the
European Union. Furthermore, it is really difficult to engage Moldova in large green projects to cover at least half of
imports of energy resources. In this work, it is hypothesized that taking into account current economic and energy
situation of Moldova, in terms of bio-fuels (bio-ethanol) production, the country is not prepared for a project of such
magnitude. A reckless upsurge in this sector could generate a series of imbalances related to the use of land and food
security. Therefore, the main objective of this work is to identify the strengths, weaknesses, opportunities and the
threats of the bio-ethanol production in Moldova, by using the SWOT analysis methodology.
The production of energy from biomass in Moldova would mainly fail due to its most precious resources: the
unconsolidated land, as well as, the households that require urgent reorganization, not to mention the lack of an
appropriate legal and technological infrastructure. In order to highlight these facts, in parallel with trends of
increasing prices for cereals and increasing consumption of both energy and food, the author has researched through
an extensive body of literature relevant to this topic.
Moldova was chosen as the focus of this research mainly because of its “interesting” and complex political and
economical circumstances: its continuous systemic transformation towards democratic values while under
continuous internal and external pressures and under almost total dependency of one provider of energy resources.

2. Literature review

The biofuel production is not an yesterday finding, but despite much success in terms of the replacement of fossil
fuels, reduced carbon emissions, increased farm income, improved energy security and new jobs creation (Rajagopal
& Zilberman, 2007, pp. 7-8) the scientific community is now concerned about its negative effects,such as, food
insecurity, boosted prices on cereals, ineffective land-use, and water depletion (Rajagopal & Zilberman, 2007).
Taking into consideration the cause – effect aspects related to bio-fuel production boom, where Brazil, Argentina,
Colombia, Guatemala, Mexico, El Salvador and the US are among important producers of bio-fuel on American
continent (Solomon & Bailis, 2014), a number of inconsistencies exists between food prices, policy applied and
demand for land. As a result, when aplying the “universal carbon tax” the food prices boost (Calvin, et al., 2014).
An increased price of commodities boosts the price of crops as well as the cropland (Langpap and Wu, 2010, p.
167). According to Hausman, et al., (2012) that revisited the issues related to bio-fuels production, land use and corn
prices, significant oscillation in corn prices were observed during 2001-2008 due to bio-ethanol production (p. 135).
Tao and Aden (2009), discussing the present and the future of bio-fuels, highlight the large share of feedstock price
that in the end generates increased prices for food.
Finally, being an international matter, issues and debates related to bio-fuel (the imbalance between bio-fuel
production and food security) reached a level that requires pushing the boundaries and going beyond biological,
econometric, technical, chemical or physical approaches and engaging a mediated approach relying on “agricultural
ethics” and philosophy as well (Thompson, 2008). This type of approach needs Moldova, not because it is the
poorest country in Europe, but because of its tragedy of having one arm tied to the past, in all sectors, including
agriculture and energy, and with another one caught in the possibility of choosing the development strategy and the
energy providers.

3. Is the bio-ethanol needed in Republic of Moldova now?

Basically, the bio-energy production boom in Moldova could really occur in two cases. Firstly, it could occur in
the case of a feedstock excess (Fig 1.a) when there is no risk of hunger for the population, and Moldova could
decide to minimize the dependency on imported energy. Secondly, in the case of a real deficit of energy sources (Fig
1.b) that could stimulate the creation of alternative energy resources, mainly the renewable ones, as well as the
development of energy production technology. Both of these scenarios could easily achieve a trading capability and
solve Moldovan dependency on imports of energy resources, as well as place Moldova on a good position on the
European market.
898 Oxana Soimu / Procedia - Social and Behavioral Sciences 149 (2014) 896 – 900

(a) ( b)

Feedstock excess Energy deficit

A mere production technology
Development of energy products

Consumption devices
Development of production

technology
Trading possibility

Fig. 1. (a) feedstock excess; (b) energy deficit.

These two scenarios (Fig. 1 (a) and b)), can be further explained by looking at the real situation that Moldova is
currently facing. Generally, there is no energy deficit that can be observed in Moldova (Fig. 2) and more than that, at
the end of the year, there are even stocks of fuel, though an insignificant amount, that are exported. In addition, the
agricultural sector requires the least amount of energy in terms of production-technological needs (Fig. 3). This
situation explains one obvious paradox that Moldovan economy cannot be considered agriculture based but rather an
economy with agricultural history. Finally, there is no evidence of feedstock excess. It is also important to note that
Moldova has no consolidated farmland and many regions are affected by soil erosion. By looking at the data
provided by the National Bureau of Statistics of Moldova it can be concluded that during 1995-2001 the
consumption of water by agriculture decreased drastically and until recently it maintained almost same levels. That
is another supporting argument that indicates that agriculture and industry in Moldova are in decline, but
comparatively, wastes are growing.

Fig. 2. Energy balance of Republic of Moldova Fig. 3. Energy share in production-technological needs in main
sectors

Source: Authors calculations. Data retrieved from National Bureau

Source: Data retrieved from National Bureau of Statistics of Moldova,
of Statistics of Moldova, Statistics by themes, Energy and fuel
Statistics by themes, Energy and fuel resources, “Energy balance
resources, “Energy balance (terajouli) (2005-2012)” (www.
(terajouli) (2005-2012)” (www. statistica.md)
statistica.md)

4. SWOT analysis

It is incontrovertible that, “…in the future agriculture will become a significant supplier of energy along with
food.” (Rajagopal and Zilberman, 2007, p. 6). Nevertheless, as shown above, Moldova is not prepared for a project
 Oxana Soimu / Procedia - Social and Behavioral Sciences 149 (2014) 896 – 900 899

of such great tecnological, consumption and production change. The following SWOT analysis (Table 1) which is
based exclusively on current realities, which many times are linked to the Soviet legacy, clearly portrays this
situation.

Table 1. The SWOT analysis of bio-ethanol production in Republic of Moldova

STRENGHTS WEAKNESSES
No greenhouse gas emissions; Lack of concrete legal approach to bio-fuels productions in
Energy security – reducing the imports; Moldova;
New Energy Strategy for the Country; Lack of Bio-fuel productions (Bio-energy) Strategy;
Moldova back to roots - agriculture; Lack of advanced technology for bio-energy;
More work places; Lack of land-use policy for biomass;
Biomass potential; Lack of a cost – benefit analysis;
Lack of coordination among decision making, academia and
producers;
Backward technology used in agriculture;
Lack of mechanisms and incentives like tax exemption from
Government;
OPPORTUNITIES THREATS
Energy efficiency; Defforestation -> landslides ;
New incentives for R&D (technology, Irrational and excessive utilization of pesticides and fertilizers;
green technology); Water pollution;
Foreign Direct Investment; Food insecurity, risking with “hominy (mamaliga) crisis”;
Changing the consumption culture; High prices for grains;
Export of biodiesel; Political interests, monopolization of biomass production;

One can easily observe (Table 1), how the greater weight of weaknesses and threats over the strengths and
opportunities highlights that the energy security of Moldova is threatened by massive imports (more than 90%
according to the data provided by the National Bureau of Statistics of Moldova). Albeit, IDIS “Viitorul” (2012)
estimated that only a little less than half of households use the agriculture waste and about 48% of natural gas
imports could be reduced by maximizing the biomass resources. In case of bio-ethanol production, Moldova does
not have enough technological and legislative capacity to turn it into an Energy Strategy.

5. Concluding remarks

This work aimed to perform a SWOT analysis of bio-energy production in Moldova, relying on prospects of bio-
ethanol production, a sector that is expected to succeed. Surprisingly or not, although it does not contradict the
findings of the studies performed by Moldovan researchers (for instance by IDIS “Viitorul” (2012)) on the biomass
potential, this work recommends against the necessity to make a “hurried” shift towards massive energy production
from biomass. So far, the above mentioned leaders in bio-ethanol production do not enjoy such policies that would
address issues related to the imbalances between bio-fules producion and prices for food crops. Moldovan legal
framework for bio-energy is even more underdeveloped. The entire Moldovan agricultural system is currently
wrong. The change should start with farm re-structuring and the production of bio-ethanol should be dedicated to
self-consumption inside the farm at its first stages. For these purposes, there are two suitable situations for
producing bio-ethanol: the excessive feedstock or, the energy deficit. Consequently, in order to convert the
production of bio-energy (bio-ethanol) in an Energy Strategy, the energy and food need to be controlled by the
government in order to prevent a food crisis and an uncontrolled and excessive price for grain, food and bio-energy
resources on the domestic market.

6. Acknowledgements

I thank LUMEN2014 that brought together an excellent scientific environment for discussing interdisciplinary
topics and Dr. Miren Ikerne del Valle Erquiaga for nurturing my interest for bio-energy and climate change, as well
as for her valuable scientific advices.
900 Oxana Soimu / Procedia - Social and Behavioral Sciences 149 (2014) 896 – 900

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