Memorandum of Understanding signed between CGES and the Independent System Operator of BiH – Sarajevo

In accordance with European regulations which encourage the increase of cross-border capacities, and legal obligations which include system management within the ENTSO network, the transmission system operators of Montenegro and Bosnia and Herzegovina (CGES, NOS-Sarajevo), signed a Memorandum of Understanding in Sarajevo today, which aims to implement activities on the projects for the reconstruction of the existing 220 kV DV interconnection 'Perućica' – Trebinje' power plant, as well as the construction of a new 400 kV interconnection.

The memoranda were signed by the managing directors of the companies: Ivan Asanović, and Nemanja Pandurević, and the signing was also attended by Aleksandar Mijušković, Chairman of the CGES Board of Directors, Ana Marić i Muhamed Mujakić, members of the management of NOS BiH.

Aleksandar Mujušković the chairman of the CGES Board of Directors, emphasised that he is very pleased that this significant document has been signed because, as he stated, The Memorandum represents a strengthening of ties between energy companies, cooperation on new projects, and joint work to increase energy stability, thereby creating a more favourable economic and investment environment in the signatory states.

Ivan Asanović, The Executive Director of CGES assessed that very important work was done today with partners from BiH.According to him, the construction of new and the reconstruction of existing power lines is important at a regional, not just bilateral, level, especially in the era of the 'green transition'. Looking forward to the successful completion of the work that has begun, Asanović specified that the value of these projects exceeds several tens of millions of euros.

"The construction and reconstruction of power lines are always expensive investments.The Montenegrin electricity transmission system has already taken a step forward this year and received significant funds from the European Commission to prepare a feasibility study for these very projects, and additional grants of up to 20 per cent of the total investment are also expected," explained Asanović.

According to the words Nemanja Pandurević, The Director General of the Independent System Operator of BiH – Sarajevo, noted that the significance of these projects lies in increasing transmission capacity, which is crucial today as it provides greater opportunities for the integration of renewable energy sources.He pointed out that the trend of building solar power plants and wind farms is on the rise in the region.

"The interconnection will also increase the security of the electricity supply and eliminate congestion on the grid. It is also important to emphasise the regional significance of implementing such capital projects," stressed Pandurević.

The construction of the new 400 kV "Brezna – Sarajevo" interconnector will enable an increase in cross-border capacity between the two countries, greater integration of renewable energy sources, and the further development of the market. The second project concerns the reconstruction of the existing 220 kV interconnector 'Perućica – Trebinje', which is seen as part of a wider picture of increasing the transmission capacity of the entire 220 kV network from Bosnia and Herzegovina (Trebinje) to Albania (Vau Dejes).