Italy and Serbia signed an energy agreement, electricity goes through Montenegro

Italy and Serbia signed an agreement in Rome on strategic cooperation in the field of energy, which foresees the joint construction of hydroelectric power plants on the Ibar and Drina rivers and the export of electrical energy via Montenegro and an underwater cable to Italy.

The agreement was signed by Italian Minister of Economy Paolo Romani and Serbian Minister for Infrastructure and Energy Milutin Mrkonjić. On this occasion, Romani announced investments in the amount of 800 million euros for the construction of hydropower plants on the Ibar and Drina, as well as that the energy produced in those power plants will be exported to Italy via Montenegro and Terna's underwater energy cable.

Romani reminded that in the Action Plan that Italy submitted to the European Commission in July 2010, it specified that it would import 6TWh of energy per year through Montenegro.

As stated in the announcement of the Italian government, this agreement builds on the agreements signed in March and November 2009, setting the conditions on the basis of which the previously selected hydropower plants will be built.

"I am very satisfied with the agreement that was realized today as a result of long work and an increasingly strong partnership between Italy and Serbia. These projects are in line with two reciprocal interests: the Italian interest to invest in joint projects that will contribute to reaching the objective of 17% of energy from renewables source that is set on the European plan, and the interest of the Balkan countries to develop their internal energy sources, simultaneously strengthening industrial cooperation and their integration into the European system," said Romani.

Following preliminary agreements from 2009 and July 2010, the Italian company Seći energija founded together with Elektroprivreda Srbije (EPS) the company "Ibarske hidrokelane doo Kraljevo" which aims to build 10 hydropower plants on the Ibar with a total power of 103MW and a value of 285 million.

In the new company, Seći energija has 51% of the shares, and EPS 49%, and it was previously announced that all costs for the construction of hydroelectric power plants will be borne by Seći energija.