Albania is trying to position itself before Montenegro as the main route for the export of cheaper electricity to Italy.
An energy cable connecting the two countries across the Adriatic Sea could prove to be more feasible than the Montenegro-Italy cable, claims an Albanian energy expert, the ICIS portal reported.
Last week, the Albanian government signed a memorandum of understanding with the German engineering company Streicher on the establishment of a consortium that will work on that plan.
The next step will be a feasibility study.
The construction of a 400 kV cable between Italy and Albania is on the list of projects that the Energy Community is interested in.
The installation of infrastructure for the Trans-Adriatic Gas Pipeline (TAP) could reduce the cost of building the cable between Italy and Albania, making it more financially viable, according to Lorenc Gordani, legal advisor for the energy market and project manager at the Albanian Research Center (ACERC).
According to the calculation of the Albanian Ministry of Energy, the costs of the Albanian-Italian cable would amount to around 200 million euros.
The largest transmission operator in Italy (Terna) estimated that the cost of the cable to Montenegro will amount to around 760 million euros.
Crnogorski Elektroprenos (CGES), in which Terna is a co-owner, will participate with about 100 million in financing the facilities to which the cable will be connected, as well as the electricity transmission system from the coast to the north of Montenegro.
"We do not know what kind of technical solution is involved for the Albanian-Italian cable. The market regulator in Italy would not allow Terna to finance an underwater energy cable at a price that is not economically acceptable. Montenegrin consumers do not finance the construction of the cable, that is done by Terna", informed "Vijesta" in CGES.
The financing of the cable substation in Kotor and the transmission line to Pljevlja is felt through electricity prices.
Gordani also points to the extension of the deadlines for the Montenegrin cable. He hinted that the Albanian cable could start working first, but first it would have to attract private investment.
In Montenegro, work began on the construction of the transformer plant for the cable, and the laying of the submarine energy cable Italy-Montenegro began at the end of February on the Italian side. The start of construction was delayed due to a dispute with Croatia regarding the route where the cable will pass through the Adriatic on their territory. It was supposed to be completed at the end of this year, but now 2018 is being mentioned.
The cable of about 500 kV is 830 kilometers long, of which 786 kilometers are underwater. It is about two cables, each 415 kilometers long
The ICIS portal reports that in the next few years new hydropower plants will be built in Albania, which will create supplies that will be used for export. According to ICIS data, this Balkan country gets most of its electricity from hydropower plants with a capacity of 1,4 gigawatts.
Cable Italy - Montenegro about 860 million
The laying of the Italy-Montenegro undersea energy cable began at the end of February on the Italian side.
And the Montenegrin Elektroprenos (CGES) is preparing the construction of the plant to which the cable will be connected and the transmission line from Kotor to Pljevlja.
The Italian Terna, which is a co-owner of CGES, will finance about 760 million euros of the project, while the Montenegrin side will finance about 100 million euros.
For this, the majority state CGES borrows on credit, and the Government provides guarantees for the repayment of the loans. Citizens of Montenegro pay about one hundred million through electricity bills, i.e. investment incentives.
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