Montenegrin TSO CGES buying power transmission lines from its Serbian counterpart EMS

Serbian transmission system operator (TSO) Elektromreža Srbije (EMS) and Montenegrin TSO CGES agreed that each would become the owner of the parts of overhead transmission lines on its country’s territory, and signed a contract.

EMS and CGES signed a contract on the purchase of electricity infrastructure. The two state-owned TSOs said it is the confirmation of their many years of cooperation and of their joint commitment to the development of a stable and reliable regional electricity system.

The reason for such an arrangement is that maintenance and utilization of transmission lines on the other country’s territory is complex and demanding, both from the technical and legal perspectives, the announcement reads.

Contract was signed by CEOs Jelena Matejić, Ivan Asanović

CGES will become the owner of the parts of EMS’s interconnector power lines of 220 kV and 110 kV that are located in Montenegro, they said, without revealing the purchase sum.

CGES is taking over the parts of EMS’s interconnector power lines that are on the territory of Montenegro

The contract was signed by General Manager of EMS Jelena Matejić and Executive Director of CGES Ivan Asanović. The two companies explained that they have initiated the search for a sustainable solution for interconnector power lines of 220 kV from Pljevlja in Montenegro to Bajina Bašta in Serbia and from Pljevlja to Bistrica in Serbia, and the one from Pljevlja 1 to Potpeć in Serbia, of 110 kV, all owned by EMS, and for CGES’s internal overhead power line Mojkovac-Pljevlja of 220 kV, which has a section in neighboring Serbia.

Deal aimed at simplifying operations, greater legal clarity

They adopted a model under which each TSO is becoming the owner of transmission lines on the territory of its country. It is a principle enabling simpler management, more efficient maintenance and greater legal and operational clarity for transmission systems, the operators said.

“With this contract we are creating a more stable basis for a technically and legally regulated transmission system, additionally strengthening the reliability and safety of the electricity grid in the region,” Jelena Matejić stated.

The companies showed that they are able to solve complex issues jointly and in the interest of both countries and all users of the electricity system, according to CGES head Ivan Asanović.

Of note, EMS has a 15% share in CGES, while the Government of Montenegro controls 55.4%. Jelena Matejić is a member of the board of directors. Italian TSO Terna owns 22.1%.