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.
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