Serbia, Bosnia, Montenegro: JV project for 400Kv interconnection, EU funding

25. August 2015. / SEE Energy News

The construction of transmission line Serbia, Montenegro, and Bosnia and Herzegovina is nominated as one of the priority projects for the meeting between Prime Ministers of the Western Balkans on August 27th in Vienna, and its construction means connection the energy markets of Eastern and Western Europe and a more stable power supply including the export and import.

The project does not mean that the citizens of the three countries will pay cheaper electricity, but it will be cheaper to service their operators in electricity transmission

The construction of transmission line that will connect the power networks of Serbia, Montenegro and Bosnia and Herzegovina should start in 2017th, and joint venture of three states that will deal with it was established in April this year with headquarters in Belgrade and it is expected to start working in August. Transmission line with voltage of 400 kilovolts should connect Bajina Basta, Visegrad, Pljevlja and continues to undersea cable between Montenegro and Italy.

What is CSC: The start of the company Center for security coordination CSC was announced after the July meeting of Ministers of Serbia and Montenegro Aleksandar Antic and Vladimir Kavaric and it should enable a stable electricity supply in our region, but also export and import of electricity between Eastern and Western Europe. “The Center for security coordination CSC Ltd. is a joint venture established by transmission system operators CGES, ISO and EMS (Public Enterprise Elektromreza Srbije) on April 21st, 2015th and it is envisaged that provides services to transmission system operators in the process of operational planning work “, it was said in the Ministry of Mining and Energy of Serbia. CSC is engaged in improving individual model, or the merging of individual models in a common model. Then with security budget including corrective actions. In third place is coordinated budget of cross-border transmission capacities, followed by evaluation of short and medium-term adequacy and at the end coordination of exclusion planning – primarily with its founders, and later with other (transport systems operators) TSOs from the region who had a business interest for that.

The benefit for citizens: The founding of the company imposes several questions: what benefits it will bring to the citizens of all three countries and how they will be financed by CSC, whether the idea for CSC comes from EU or they are working on joint projects of cross-border cooperation which may be obtained by steam from EU funds? In the Serbian Ministry of Energy say that CSC will be financed from fees and charges that will work for the operators of the transmission system, and that the benefit will primarily feel citizens of these three countries. “National TSO will pay services less than that CGES, ISO and EMS would individually procure services from coordination centers of Western Europe such as TSC (M√ľnchen) or Coreso (Brussels). A benefit for the citizens of all three countries certainly is that in the Centre for Coordination of Security CSC primarily work engineers from founding states”, respond from the Ministry of Energy. They note that the idea for CSC establishment resulted from the obligations stipulated by the European network policies and labor standards by which it is requested of a transmission system operator to procure the aforementioned services from the Centers for security coordination. Financing about who will be the experts of energy from Serbia SCC found in the Ministry of Energy is not yet known. But, it has been already known that the value of the transmission line on the territory of Serbia is 48 MEUR and that the Serbia expects that half of this money gets from EU grants. However, a prerequisite for the realization of this project is to connect Kragujevac and Kraljevo by transmission line of 400 kilovolts whose construction process should begin this year and be completed in 2017th.

According to Jelena Matejic, director of investment and strategy in Elektromreza Srbije, construction and the route was agreed with EU Delegation in Belgrade and the deal is worth 25 MEUR, and Serbia expects to receive from 10 to 12 MEUR from the EU. Minister of Trade and Economic Development Mirko Sarovic said that the project Visegrad-Bajina Basta-Pljevlja financed from this fund of 67MEUR, within the energy agenda. This whole project is part of the Trans-Balkan corridor which is one of the most important projects of national and pan-European importance. Otherwise the project of Trans-Balkan corridor is marked as priority projects of EU and this project is included in the IPA funds for this year. Trans-Balkan corridor will allow the electricity transmission over long distances with minimal losses and the market will merge Eastern and Western Europe. In addition to building new transmission lines and raising the voltage level of the old parts of the transmission network in Serbia, it is also envisaged the construction of interconnection between Serbia and Romania, Montenegro, Bosnia and Herzegovina, Bulgaria and Hungary.

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