The Balkan region

The Balkan region is the area of greatest strategic interest for Terna, considering its proximity and the energy potential in the region, particularly with regard to renewable resources. 

The region currently has the most attractive nearby power market because of the forecast medium- and long-term power surplus at competitive production costs and the diversification of supply sources, thanks to its unused renewable energy potential (in particular hydro, wind energy and biomass), which can help to ensure compliance with EC targets in terms of CO2 reduction. Access to this market will enable diversification of supply sources, at competitive production costs.

Montenegro is the focus of Terna's activities in the Balkans, as it is extremely well-placed to meet the demands of the national market thanks to the availability of a transmission network in good condition that is well-linked to the generating hubs planned for the area in the future (Bosnia - Herzegovina, Serbia, Albania and – via Serbia – Bulgaria and Romania). These factors make Montenegro the best candidate for the role of electricity exchange platform between Italy and South East Europe, with surplus energy availability over the short-medium term, at lower costs than in Italy. 

In this context the new underwater electric power line between Italy and Montenegro, incorporated into the NTG Development Plan, will link Italy to the Balkans through 415 km of cable between the 400 kV hubs in Villanova (Pescara) and Kotor (Montenegro), with a transport capacity of 1,000 MW.

Plans for the power line are also based on the intergovernmental conventions and other agreements between Terna, the government of Montenegro and the local transmission operator CGES to construct the Italy-Montenegro cable and the network infrastructure in Montenegro through a strategic partnership between Terna and CGES, in whose share capital Terna itself holds a stake.

The authorisation process has now been successfully complete on both sides, and the international tender contracts relating to the supply and installation of the HVDC cables and conversion stations have been awarded according to the procedure used to award services and supplies for grid development investments in Italy.

The project is currently in the implementation phase: in Italy, these activities are handled by Terna Rete Italia, while in Montenegro they are the responsibility of Terna Crna Gora.

To complete the new underwater power line with Montenegro, Terna intends to promote the development of network infrastructure in the Balkan states, in order to consolidate the electrical exchange corridors with Italy, guaranteeing Italian electricity market operators the opportunity to import from the region. Terna Crna Gora is also working to promote development opportunities in the transmission sector in the Balkans in support of investors in generation, in order to contribute to the enhancement and use of the Italy-Montenegro interconnection infrastructure. These activities are focused on the planning, construction and management of transmission infrastructure to connect the local transmission grid to new generating installations, and to electrical interconnections between Montenegro and its neighbours.