Trans-Balkan Corridor: Serbia – Montenegro – Bosnia and Herzegovina 400 kV Interconnection

Trans-Balkan Corridor: Serbia – Montenegro – Bosnia and Herzegovina 400 kV Interconnection

Project Description

The project examines the feasibility of constructing a new 400 kV connection between the electricity transmission systems of Serbia, Bosnia and Herzegovina and Montenegro.

Technical assistance has been provided for a feasibility study to analyse the existing 220 kV connections, now largely ready for replacement, focussing in particular on the route Visegrad – Vardiste – Bajina Basta – Bistrica – Pozega. Additionally, a preliminary assessment of the option to strengthen the 400 kV network towards Nis in the East and Gacko in the West was also undertaken. Six potential connection scenarios between the three countries were analysed as part of the study and, following agreement on the selected option, a full economic and financial assessment and an environmental and social impact assessment were prepared.

This project is regionally very significant. Its construction supports, with parallel WBIF supported projects undertaken in Serbia and Montenegro, a strategic electricity transmission corridor running northeast-southwest through the Balkan countries. The project has significant energy market benefits and will allow the transfers of power, including new renewable sources, between countries in South East Europe and Italy. The technical assistance work, followed by project implementation, will result in a structured approach to justifying, constructing and developing this 400 kV transmission connection with regional transmission system improvements which greatly enhance power transfers.

Indirectly, the investments will provide the basis for the improvement of net transfer capacity to facilitate anticipated load and transit growth in this region, new conventional and renewable generation connections. Moreover, the project will contribute to improving the stability and reliability of the regional network, leading to improvements in the overall security of supply, losses and energy quality. As such it supports the potential to develop the regional energy market in South East Europe and create trading opportunities between SEE and EU countries.

The main beneficiaries of this project are the three national transmission system operators (TSOs) who are interested in constructing this connection – these are EMS in Serbia, CGES in Montenegro and Elektroprenos in Bosnia and Herzegovina. However, as a regional connection, there are other TSOs and market actors who will benefit when this connection is established. These are power trading companies, generators, and suppliers. The participation of Terna, the Italian TSO, is included due to its new submarine Montenegro – Italy interconnection (CGES-TERNA) for energy supply/exchange; this line is currently being put in place. Due to its regional significance, the project is endorsed by the European Energy Community.

Project Financing

WBIF Grant WB5-REG-ENE-02 € 956,000
WBIF Grant WB13-REG-ENE-01 € 1,105,500
KFW Loan € 27,840,000
Beneficiaries Contribution Own Contribution € 2,410,000
WBIF Grant WB-IG06E-SRB-ENE-02 € 8,878,367
Total € 41,189,867
Total Grants € 10,939,867
Total Loans € 27,840,000

Partner Financial Organisations

Western Balkan Partners