Terna, Crnogorski elektroprenosni sistem (CGES) and the Ministry of Economy organized a ceremony on the occasion of installation of power cable within interconnection Italy – Montenegro. The speakers at the event were Matteo Del Fante, Chief Executive Director of Terna S.p.A. and Milo Đukanović, Prime Minister of the Government of Montenegro.
It is the first power bridge implemented through submarine cable between EU and the Balkans. It shall connect across the Adriatic Sea the station of Terna in Villanova (Pescara) in Italy with the station of CGES in Lastva Grbaljska in Montenegro.
By installing the power cable, the interconnection Italy – Montenegro shall represent a large bridge for energy between the Balkans and Europe. The power link between Italy and Montenegro is an activity of strategic European significance. It represents a junction point of exceptional importance for the European Energy Union, reinforcing the network of electric flows for integration of the entire region of the Balkans and EU through Italy.
Montenegro occupies a special place and it has a grid well connected with neighbours (B&H, Serbia, Kosovo, Albania, and through them also with Bulgaria and Romania), it is in a strategic position to have a role of platform of power exchange. As a result of intergovernmental agreement between the two countries, the European Commission included the project into project of European common interest.
Both countries shall have benefits. The common benefit is increase of security of two power systems through connecting via direct current (HVDC), which contributes to system adaptability thanks to the speed of response in case of disturbances. The benefits for Italy are increased security of the power system, especially for Central Italy, additional significance for role of the country as junction point of the Mediterranean, while about 35 companies and 215 people are working on the construction site.
The benefits for Montenegro are strengthening the role of the country as energy platform of exchange between the Balkans and EU by promoting integration into the European market, implementation of the plan of reinforcement of national gird and coastal zone with high tourist attendance, and employment of over 500 persons and over 30 local companies during the implementation phase (duration of 4 years). At the construction site during the most challenging activities, over 200 people per day shall be employed.
The commencement of the works was made official by the Prime Minister Milo Đukanović and CEO of the Italian company Terna Mateo del Fante.
“With today commenced works we are entering into a new phase of the strategic project of submarine cable implemented by the Italian company Terna and Crnogorski elektroprenosni sistem (CGES). Already 136 km of the cable were installed from the Italian coast, whose total length between Pescara in Italy and Cape Jaz amounts to 455 km. Not far from this location, CGES is constructing the substation “Lastva”, as well as 400 kV overhead line “Lastva–Čevo–Pljevlja”. Total value of submarine cable is over 800 million euros. Completion of works was planned by the end of 2018”, the Prime Minister stated.
“In only a few years”, as he added, “from an initial idea, through a ratified international agreement between Montenegro and Italy, this project was accepted as a strategic interest not only of our two states, but also of Western Balkans and EU. Such additional significance gives it the role of generator of accelerated power development of the region, which traces the new energy path – Trans-Balkan Corridor. Interests of both the Energy Community and Western Balkans countries are intertwined in this project. This is confirmed also by the fact that EU supported this project through the Western Balkans Investment Framework by assigning a grant amounting to 25 million euros intended for construction of 400 kV interconnection Pljevlja – Bajina Bašta.”
Đukanović stressed that the undersea cable is unique also due to exceptional technical challenges that we are overcoming successfully thanks to the professional reputation of our strategic partner, company Terna. Works are performed on the bottom of the Adriatic Sea, at a depth reaching up to 1200m, with rated transmission capacity of direct current of 1000 MW. Also Crnogorski elektroprenosni sistem, majority owned by the State, in partnership with one of the largest European electricity transmission system operators, confirms the ability of local companies to participate in implementation of such demanding projects.
According to his words, benefits from implementation of submarine cable, which shall connect Montenegro and the region with the strong and stable energy market of Italy and Europe, are already obvious. Only this work from the converter station in Lastva Grbaljska to Cape Jaz where we are now implies hiring over 500 persons and more than 30 local companies. During the most demanding phase in implementation of this part of the project, more than 200 people shall be employed every day.
“Besides in this section, there is a need to engage significant local labour force, as well as construction operative on construction of substation Lastva. Moreover, this will be needed also along the entire 400 overhead line from Lastva, through Cetinje, Nikšić, Šavnik, Žabljak and Pljevlja. After the construction is completed, it is expected that dozens of new highly qualified jobs shall be needed only for maintenance and operation of this new part of the system.
After entry into operation of the submarine cable, it shall be provided also important revenues for Montenegro based on CGES share in the total capacity of the cable – 20 percent of the installed 1000 MW. Revenues from electricity transmission from the region through this interconnection represent a direct income. For the electric power system of Montenegro is not less important the fact that it shall be connected to the regional and European market. By creating an integrated electricity market and by increasing competition, the industry and citizens shall be allowed electricity supply based on wholesale energy prices.
Implementation of this project shall contribute not only to a bigger openness of our electric power system, but also of the economy in whole. It is a confirmation that optimal use of available resources is the most important condition of a dynamic economic development, which shall be easier to implement by integrating into a unique European market in all sector, including the energy sector.
Multidecennial ideas on using Montenegrin energy potentials by implementing the submarine cable are already obtaining new impulses. A couple of days ago, on 29 September, we signed the Contract on construction of the second block of the Thermal Power Plant Pljevlja. Works on construction of WF Krnovo are in their final phase. Interest for hydro potentials of Morača and Komarnica is getting more intense. Connoisseurs of opportunities in this sector assess that the submarine cable had represented also a positive impulse to recently completed big power facilities in Bosnia and Herzegovina (TPP Stanari) and Albania (HP Banja). Such imposing power bridge is a convincing illustration of the effective policy of EU enlargement to the Western Balkans, and at the same time a confirmation of resolution of countries in the region to base the future development on compliance with the highest European standards. Through it, Montenegro shall essentially become the power link between the Western Balkans and EU.
Additionally, by completing these works Montenegro shall also reinforce and modernize its grids in the coastal zone, as well in the north-west part of the country. First results are already visible here. This shall allow much higher level of security and reliability of supply of users, which is one of the crucial assumptions of today and future investments in tourism. On the other hand, by opening a new power corridor in the area where we have important unused power potentials, preconditions are created for new big investments in the energy industry. Successful harmonization of these two real development objectives and approaching to the European energy market shall without doubt contribute also to increasing the quality of life of our people and accelerated achieving of European level of development”, Milo Đukanović concluded.
“Today is an important moment for the electric development of Italy and Montenegro”, said Matteo Del Fante, “We commence with inauguration of the first land route of the electric power cable, which is an innovative work that shall make him more secure and efficient “electrical passage” between Europe and the Balkans, for the first time in the history of European energy industry. We start here with the electrical connection that shall be ready and operative in 2019, and it represents a true energy path of large capacity that shall unite these two countries by reinforcing and enabling electricity power plants and thereby support development and growth. This relationship and infrastructure shall still grow in the following years, as soon as the expected electrical works regarding connection with Serbia and other countries in the region are in function, and it shall bring to a new and innovative “intelligent network system” in the Balkans”, Mateo del Fante stated.