Serbian grid operator acquires 10% of Montenegro’s CGES

By bne IntelliNews January 3, 2016

Serbia’s public power grid operator Elektromreza Srbije (EMS) has acquired a 10% stake in Montenegro’s transmission system operator Crnogorski Elektroprenosni Sistem (CGES).

Serbia’s energy minister Aleksandar Antic stressed the economic and strategic importance of the transaction, according to news agency Beta. As well as potentially increasing EMS’s profits, it will also increase cooperation with neighboring countries at a time when countries across Southeast Europe are looking to improve inter-connections.

EMS announced on December 29, it had bought 14.568.335 shares for €13.84mn and thus obtained a seat on CGES’ board of directors.

EMS said in a press release that by buying into Montenegro’s transmission system, Serbia’s position strengthens in terms of electricity trading, and is also in a better position if it needs urgent electricity supplies.

“This purchase is important, also, because EMS has started construction of Trans Balkan Power Corridor which goes through Montenegro and furthermore to Italy via submarine cable and thus brings a huge migration of energy from north to south-west,” EMS’s general director Nikola Petrovic said.

The Trans-Balkan Power Corridor connects the electricity transmission systems of Serbia, Montenegro, Bosnia and Herzegovina to Croatia, Hungary, Romania and Italy through either 400kV overhead lines or submarine cable. In early 2015 Serbia’s EMS has started construction of the corridor.

The Montenegrin government owns 55% of CGES, Italy’s Terna has a 22% stake and the remainder belongs to smaller shareholders, mainly local investment funds.

Related Articles

Veteran Montenegrin politician Milo Djukanovic to run for president in 2018

Montenegro’s ruling Democratic Party of Socialists (DPS) will most likely propose its veteran leader, former president and prime minister Milo Djukanovic, to ... more

Montenegrin court sentences opposition leader for protest violence

Montenegro’s court in Podgorica sentenced Milan Knezevic, one of the leaders of pro-Russian opposition Democratic Front, to 7 months in jail on October 18 ... more

Montenegro’s court unfreezes A2A's shares in power monopoly EPCG, paving way for sale of stake

The high court of Podgorica said it has decided to unfreeze the shares of Italy’s A2A in Montenegro’s power firm EPCG after ... more

Dismiss