Focus on Energy, 2010 - Karanovic & Nikolic

to open and commence the operation of the new coal mine will cost approximately of EUR 530 millionto get it up and running.Wind EnergyMOŽURA I KRNOVOThe Government has announced a public tender for the submission of bids for the construction of windfarms and the lease of state owned land in Možura which is located in the municipality of Ulcinj and inKrnovo which is located in the Municipality of Nikšić.It is estimated that the wind farms in the Možura region will generate up to 46 MW. The wind farm inKrnovo is projected to generate up to 50 MW. Land for the construction of these will be leased to successfulbidders by the state of Montenegro for a period of 20 years. The deadline for the submission ofbids was 24 February 2010.Agreement between Montenegro and ItalyThe Ministry of Economy and the Italian Ministry of Economic Development have signed a memorandumof understanding with regard to the development of the energy sector in both their respectivecountries. The memorandum will serve as the basis for the cooperation between the two in the field ofelectricity, natural gas and oil. There will be a particular focus on the development of electricity transmissioncapacities, renewable sources of energy and the improvement of energy efficiency.73The memorandum establishes a “Joint Commission” which is composed of both Montenegrin and Italianrepresentatives and this will help promote the implementation of the aims of the memorandum.This memorandum is especially relevant regarding the proposed construction of an electricity cableinterconnection between Italy and Montenegro which involves the construction of a cable across theAdriatic Sea. This commenced in 2007 when the Montenegrin EPCG and “Terna - Rete Elettrica NazionaleSpA” (“TERNA”), a major Italian energy transmission grid operator, entered into an agreement onthe preparation of a feasibility study. Pursuant to Ministry of Economy, the value of the investment hasbeen estimated to be in the region of EUR 600 million which is to be invested by TERNA. Apart from theItalian investment, “Prenos a.d.”, company which is currently operating the Montenegrin transmissiongrid, undertook to invest EUR 90 million for the further development and modernization of the Montenegrintransmission grid. According to the Ministry of Economy, It is expected that the project will becompleted by 2013.FOCUS ON ENERGYFuture ProjectsApart from the above mentioned projects, the Montenegrin Energy Development Strategy for 2025(the “Energy Strategy”) also proposes the following energy projects. To date, none of these have beencommenced. ityof 552 MW and an average annual production of 1,332 GWh. This system will consist of the HPP “Buk Bijela” and the HPP “Srbinje”. The combined potential capacityprojected by the Energy Strategy is estimated to be in the region of 552 MW and it is projectedthat it will have an average annual production of 1,350 GWh. However, due to environmental issuesthere is a possibility that this project may never get the green light. river Tara. It will have an estimated power capacity of 250 MW and an average annual productionof 533 GWh. -