The submarine power cable between Italy and Montenegro has helped the Balkan country increase revenues from electricity transit by threefold.
Montenegrin transmissions system operator Crnogorski Elektroprenosni Sistem (CGES) pulled in EUR 11.6 million in electricity transit revenues in 2020 thanks to the effects of the commercial use of the submarine power link between Montenegro and Italy, the daily Pobjeda has reported.
According to the company’s business reports, the revenues from the allocation of cross-border capacities the year before stood at EUR 3.7 million, and the cable was officially put into operation at the end of December, 2019.
Revenues from the allocation of cross-border capacities on all borders of Montenegro in 2020 were 46% above target, CGES said.
The company has generated EUR 4.6 million in revenue from the allocation of the cable since it was put in operation.
Revenues from the allocation of transmission capacities at the borders with Albania, BiH , and Serbia increased from EUR 3.7 to EUR 7 million
According to the CGES, the start of the operation of cable has also increased interest in the allocation of cross-border transmission capacity at Montenegro’s other borders boosting revenues at the borders with Albania, Bosnia and Herzegovina, and Serbia to EUR 6.98 million in 2020.
In 2019, revenues at the borders with Albania, BiH, and Serbia totaled EUR 3.73 million, CGES said.
The cable has linked the markets of the EU and Southeast Europe
Since the commissioning of the submarine cable, electricity trade with Italy, including transit, has reached 986 GWh in imports and 1.540 GWh in exports.
“Each new interconnection has an impact on the power system in several aspects. The commissioning of the submarine cable has increased the interest in the allocation of cross-border transmission capacities at Montenegro’s other borders, due to the direct connection of the electricity market of the European Union with the markets of Southeast Europe,” according to the CGES.