Podgorica, (MINA-BUSINESS) – The business of the Montenegrin Transmission System Operator (CGES) was successful last year, announced the chairwoman of the company's Board of Directors. Vesna Bracanović and added that investments of around 27 million EUR in energy infrastructure are expected in this area.
She said in an interview with the Mina-business agency that the past business year can already be characterised as a successful one for CGES, both in comparison with its plans and in relation to 2017.
Based on the business results achieved in the first nine months of last year, CGES reports a net profit of EUR 4.2 million. "These results are the result of the effort invested in ensuring revenue growth, as well as the improvement of business processes which has enabled further optimisation of operating costs and thus the achievement of business efficiency targets," said Bracanović.
According to her, last year was characterised by significant investments.
"Despite the challenges, which are a inherent part of the activity we are engaged in, a significant and highly complex infrastructure project – the interconnection of the Montenegrin and Italian transmission systems by a submarine cable, as a key part of the Trans-Balkic Corridor – is nearing completion," Bracanović announced.
She reminded that the additional capacities in the transmission system, which will be available upon the completion of that project, will improve the reliability of the system's operation and the quality of electricity supply services, and will create the prerequisites for further economic development, primarily of the coastal region.
Bracanović stated that CGES will continue to invest throughout this year, both in new and in the reconstruction of existing energy infrastructure.
""The total value of planned investments this year amounts to around 27 million EUR," Bracanović specified.
CGES, according to her, had planned to complete the SCADA project this year, which ensures compliance with the standards of the European Network of Transmission System Operators (ENTSO-E) and enables significantly higher quality and more efficient monitoring and management of the electricity transmission system from two independent locations.
"Specifically, this project contributes to increasing the reliability of the electricity system and to more effective monitoring and management at the level of CGES substations," explained Bracanović.
In addition to the reconstruction of the existing infrastructure, CGES's activities this year will also be focused on meeting consumer demand by building the necessary new capacity.
"Therefore, the planned activities relate to the project for the construction of the 'Žabljak' substation, which will ultimately enable one of Montenegro's most significant tourist centres to receive a dual supply of electricity at the 110-kilovolt (kV) level, both via the already constructed 110 kV 'Pljevlja-Žabljak' transmission line, as well as the 110 kV 'Brezna-Žabljak' transmission line, the implementation of which is at an advanced stage," said Bracanović.
A project of a similar nature is also planned for a section of the coastal network.
"Following the signing of the loan agreement with the German Development Bank (KfW), with significant support from the Montenegrin Government through the issuance of a state guarantee, this year we will intensify activities on the implementation of the project for the construction of the electricity infrastructure on the Luštica peninsula," said Bracanović.
Its implementation will ensure an increase in the reliability of the electricity supply to the entire region through the transmission network, while the project itself will support the further development of tourism in the area.
Bracanović said that no further borrowing is planned in the near future to implement investment projects; instead, they will be financed from the company's own funds.
According to her, CGES is extremely committed to the realisation of projects that will provide for the interconnection of the Montenegrin and Italian transmission systems by a submarine cable, which specifically involves the construction of the Lastva substation and its connection to the existing network.
"The implementation of projects of this magnitude is not common and is extremely demanding. Nevertheless, despite the challenges we have faced and successfully overcome, the works are nearing completion," said Bracanović.
Lastva Substation and the 110 kV 'entry–exit' transmission line Lastva was put into trial operation in early November, thereby providing the technical conditions and enabling the successful start of testing for part of the converter station's equipment, the construction and commissioning of which has been entrusted to the Italian company Terna.
The works on the 400 kV Lastva-Čevo transmission line are also in their final phase, which will ensure the connection of the Lastva substation to the 400 kV Podgorica-Trebinje transmission line on an 'in-out' basis.
Intensive electrical installation work is currently underway, and the final works are being carried out.
"Our teams are doing everything to complete the work and to obtain the necessary approvals this month for the commissioning of that part of the infrastructure as well," Bracanović announced.
She stated that functional tests will be carried out in the coming months, with the aim of creating the prerequisites for the cable's commercial use in the second half of this year, according to the plans.
Even after the commissioning and the start of commercial use of the cable and the aforementioned infrastructure, activities on the further construction of the Trans-Balkans Corridor through Montenegro continue.
"Work on the construction of the 400kV Lastva-Pljevlja transmission line, the Čevo-Pljevlja section, is already being carried out intensively, and options for the continuation towards Serbia, and Bosnia and Herzegovina, are also being analysed," added Bracanović.
Among the most significant activities planned for this year, Bracanović listed the completion and commissioning of the Lastva substation and the 400 kV Lastva-Čevo transmission line, which, in addition to being part of the project to interconnect the transmission systems of Montenegro and Italy, are of particular importance for the reliable supply of the coastal region and its further economic development.
As a complementary project, it is planned to intensify activities this year on the implementation of the project for the construction of the electricity infrastructure on the Luštica peninsula.
Bracanović also recalled that this year CGES is marking ten years of operation as an independent company and the same number of years of successful business with significant investments realised.
"As an independent company, CGES has to date realised investments worth almost 150 million EUR, which have had a positive impact on a safer and more reliable electricity supply and enabled the connection of new customers and electricity producers," said Bracanović.
In the next few years, she said, the addition of new production facilities is anticipated.
The results of our work to date are evident and are, above all, a reflection of the knowledge and abilities of our employees, as well as the significant support from the institutions. The results achieved so far place an obligation on us to justify expectations and make an additional effort to achieve the goals that lie ahead, which we will be dedicated to this year as well," concluded Bracanović.