Submarine interconnection helps set energy hub

Peter Sanfey, deputy director of the European Bank for Reconstruction and Development, said investors demand reforms in Montenegro aimed at the rule of law, real estate development and tax policy, with privatization as one of priorities, according to a report by agency Mina-Business.

Giulio Moreno, head of the institution’s office in the country, said he believes Montenegro will become an energy hub of the region within two years. „Installing the power cable between Montenegro and Italy, which is to be completed by the end of next year or in early 2018, is very important in this regard,” said Moreno.

Last year EBRD launched 13 projects in the country, funded by a total of EUR 99 million, bringing total investment to EUR 538 million. Since the bank operates on the basis of co-financing, it mobilized more than EUR 1 billion, according to Moreno. He added the portfolio includes the energy sector, as well as financial institutions and infrastructure. “Last year we invested more than it was planned by the budget. The focus was on energy with two important projects. One of them is the first wind power plant in Montenegro, the project on Krnovo hill worth more than EUR 130 million,” Moreno said. The second endeavour is the construction of a small hydropower unit on the Bistrica river, worth EUR 5 million.

Several energy projects are in the pipeline in cooperation with the Electric Power Company of Montenegro – EPCG and the Montenegrin Power Transmission System – CGES, EBRD’s official said. The completion of the smart electricity meters installation is planned with the main utility. He stressed the bank’s strategy for the next four years won’t differ much from the current document for Montenegro. In his words, the main pillars are the expansion of the economic base, improving competitiveness and security of power supply and energy efficiency.