Power cable to reach our coast in the second half of 2016
PODGORICA – In an interview with Pobjeda, Ivan Bulatović Executive Director of Montenegrin Electrical Transmission System said the submarine power cable, being in charge of our strategic partner Terna company, is supposed to reach the Montenegrin coast in the second half of the following year.
Here we should bear in mind that the deadlines may be extended should the underwater exploration through Croatian territorial waters and the procurement of an additional cable last longer than planned. The first cable section in the length of 137 km has been installed, and the cable laying is progressing fast – told Mr. Bulatović.
POBJEDA: Are you satisfied with the construction dynamics of the overhead line in the territory of Montenegro?
BULATOVIĆ: Works are well in progress on the 400/110/35 kV substation “Lastva” to which the overhead line from Pljevlja will be connected, the existing overhead line Podgorica-Trebinje and submarine cable through converter substation. The contractor is on site and no big delays or unforeseen events are expected to occur. As for the overhead line from Lastva to Čevo, unfortunately, the contractor has not yet entered the site, but works are expected to commence very soon. The deadline for commencement of the works is 21 July. Project documentation is in the final preparation phase, and our teams are out in the field trying to provide access to the tower positions and construction site in cooperation with the Real Estate Administration. Project documentation for the overhead line from Čevo to Pljevlja is also being prepared and works are expected to start very soon. So we can say the construction dynamics of the entire overhead line from Lastva to Pljevlja is relatively good having in mind the project volume and complexity. However, from the management point of view having clear deadlines it always seems that it could have been better done, although CGES workers are continuously out in the field.
POBJEDA: Are you aware of the intergovernmental arrangement regarding the cable passing over the territory of Croatia?
BULATOVIĆ: Since this is a joint project, CGES has a good communication with the company Terna Montenegro exchanging information on a daily basis. We are aware the dispute over the cable passing over the Croatian territory has been settled. Now the Italian side is to perform the underwater exploration and provide somewhat longer cable than it was originally anticipated, which finally should not jeopardize the planned dynamics of cable laying, but would make the situation in the field more complex.
POBJEDA: Has the financial structure been already provided for the Montenegrin part of the cable and what is it like?
BULATOVIĆ: Thanks to highly positive indicators of project cost-effectiveness and the significance of the project for power sectors in the Balkan and Italy, or their markets in electricity, the financial structure has long been closed. An integral part of the whole arrangement between CGES and Terna was the capital increase of CGES, which in addition to the strategic partnership provided initial investments. With the support of the Government, the remaining funds amounting to 85 million euro were provided by KFW and EBRD through development loans. Having in mind that these are the loans for which the sovereign guarantee was issued, the funds were granted under very favorable conditions.
POBJEDA: How do you feel about the reliability of transmission network and are new facilities planned?
BULATOVIĆ: We have done much work this year to ensure safe and reliable operation of power system. We have performed rehabilitation of the overhead line on the coastal area and replaced suspension equipment and conductors, and performed reconstruction of the existing substations. However, this is not enough to ensure 100% reliability. During the summer months, due to extremely high temperatures short-time interruptions may occur; however, we are trying to maximally reduce the duration of the outages by taking these measures.
POBJEDA: Transmission network losses?
BULATOVIĆ: The great interest of the public in transmission and distribution losses has recently culminated in legal provisions aimed at removing these costs from electricity bills. It is reasonable that any costs affecting the price payable by end consumer is always under the watchful eye of the public. Anyway, there is no country in the word tariffing power transmission without including losses therein. Transmission losses are indeed physical phenomena inevitably occurring in power transmission, and as such must be accepted. Losses in transmission system are purely technical and amount to approximately 3%, which correspond to that of other member states of European Power Interconnection and the study on transmission system losses.
J. RABRENOVIĆ
We should bear in mind that the deadlines may be extended should the underwater exploration through Croatian territorial waters and the procurement of an additional cable last longer than planned.
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Left without half income
POBJEDA: CGES achieved good business results last year. What do you expect this year?
BULATOVIĆ: Last year is one more in a series with positive results, this time the record ones. Besides the considerable profit gained from the reasonable performance of business activities, most importantly is that we have a high level of implementation of investments in national infrastructure, at the same time not losing the focus on the implementation of the strategic project of connection with Italy. In terms of system management, we have also achieved significant results. We can hardly expect this result next year; anyway, we hope it will be positive despite the difficult business environment. The public is aware that we are left temporarily and groundlessly without one of our major source of income from charges payable by electricity producers. We hope this will be settled very soon, particularly having in mind the positive development of events regarding enforced collection. Thanks to the previous positive results and efficiency achieved in other fields, CGES managed to sustain and ensure the stable functioning of the system, although deprived of almost half regulatory allowed revenue.
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