Aid to Italian Power Demand from Western Balkans

Various Italian companies are considering moving into the electricity sector following the development of a transmission infrastructure linking the Western Balkans to the country.  The idea is to establish power generation facilities in markets which can potentially build more electricity capacity and send power back to Italy.  This seems to be the main source of the region’s foreign direct investment (FDI).

Italian company Seci Energia SpA announced it will establish a EUR819mn joint venture (JV) with Serbia’s state owned utility EPS to construct ten hydropower plans on the Drina River starting next year which will have 300MW capacity.  Part of the output will be sent to Italy through Montenegro where Terna (an Italian grid operator) has a stake in Montenegrin grid operator Prenos and this sub-sea transmission line should be in working order by 2015.

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