Interview with the Chairman of the Board of Directors, Aleksandar Mijušković, with MINA BUSINESS
Podgorica, (MINA-BUSINESS) - Crnogorski elektroprenosni sistem (CGES) closed the previous year with a record profit of EUR 35.7 million, said the Chairman of the Board of Directors of that company, Aleksandar Mijušković adding that the business path since 2021has been marked by historic results.
In an interview with the Mina-Business agency, Mijušković said that it was a dynamic story about that energy company, which had become synonymous with success since the beginning of its independent operation.
"Nevertheless, our business path since 2021, when I assumed the position of Chairman of the Board of Directors, has been marked by historic results, in that year CGES achieved a profit of EUR 16.9 million, in 2022 EUR 20.3 million, while last year we had a record profit of even EUR 35.7 million, which in the total amount, for three years, is an impressive EUR 72.9 million in profit", specified Mijušković.
He added that CGES also distributed dividends for 2020 and 2022 in the total amount of EUR 15.7 million, of which EUR 8.7 million (gross) belongs to the state, as the majority owner of CGES.
"We also paid the state a profit tax of EUR 9.6 million for the same period, while at the same time lowering the transmission tariff by about 22%, as a reflection of our responsibility towards the community, i.e., support for the economic development of Montenegro," said Mijušković.
According to him, the key factor in the company's triumph lies in the strategic investment planning, implementation of development infrastructure projects, carefully defined strategies, as well as the commitment to defying all the challenges faced in the previous period.
"Our vision, determination, and commitment to sustainable energy solutions have ensured us not only financial prosperity, but also the trust of the community in which we operate, and of business partners outside the Montenegrin borders as well. Thanks to the tireless engagement and expertise of our team, our energy company has achieved historic business success. Every member of our team, from technical sector professionals to administrative staff, is responsible for this exceptional success," said Mijušković.
Their dedication, innovation, and team spirit made it possible to achieve outstanding results and set new standards.
"This is why I'm taking this opportunity to thank them for their commitment and efforts in making it possible for our company to achieve enviable results," Mijušković added.
When asked how much benefit CGES, i.e. the state of Montenegro, has received so far from the submarine connection project, Mijušković replied that the dynamic segment of the CGES portfolio had begun with the submarine cable, connecting the transmission systems of Italy and Montenegro, and as such had become a vital infrastructure for the energy company.
"Transmission of electricity via this cable becomes a symbol of connectivity and prosperity." By using modern technologies and sophisticated systems, the company has gained maximum benefits from the utilization of the cable, ensuring stability in energy supply and profitability, as well as an increased interest from electricity market participants in the allocation of cross-border transmission capacities, leading to related revenue growth on other borders as well," said Mijušković.
This is supported by the figures showing that the total revenues from the allocation of cross-border transmission capacities, since the commissioning of HVDC until the end of March of the current, amount to EUR 152.1 million, of which EUR 56.1 million is from the cable.
"As a national electricity transmission operator that carries out a regulated activity, the actual and approved revenues are subject to adjustments for the regulatory period, leading to a reduced electricity transmission tariff for the regulatory period 2023-2025, by as much as 22 %," said Mr. Mijuskovic.
According to him, thanks to this efficient connection, Montenegro has become a key energy hub of the region, contributing to the country's economic development.
"This story of success shows how smart use of infrastructure can transform economies and improve the lives of citizens," claims Mijušković.
When asked to single out the most significant projects when it comes to the modernization of the transmission network during the past year and which are the most important completed investments, Mijušković replied that the company's commitment to the modernization of power facilities and investment in the transmission network was a key strategy for ensuring the stability and efficiency of the power system.
"Being aware that electric power facilities are the "heart" of the infrastructure that drives our society and economy, we are committed to ensuring that these "hearts" beat with full capacity and reliability. Through continuous investments in plant modernization, technology upgrades, and the implementation of smart management systems, we are creating the foundations for energy efficiency and safety," said Mijušković.
As he added, the focus on the transmission network is crucial, being the backbone that connects electricity production and consumption.
"By investing in strengthening of capacity, resistance to external influences, and integration with renewable sources, we are creating a flexible and sustainable system capable of responding to future challenges. "Our commitment to the modernization of power facilities is not only an investment in infrastructure but also the future of our society," Mijušković added.
He singled out only some of the key projects.
As part of the international project - Trans-Balkan Electricity Corridor, CGES has successfully implemented the last phase of the modernization of the protection and control system in nine substations.
"This project is a key step in improving the reliability, efficiency, and security of the power system.
"The implementation of advanced technologies, such as digital relays, SCADA systems, and process automation, enabled quick detection and resolution of problems in the network," said Mijušković.
Through the modernization of the protection and control system, the power system has become more resistant to breakdowns, with better power flow control and support for the integration of renewable energy sources (RES).
This project, he added, brings significant benefits in terms of grid stability and provides a foundation for further development of intelligent power systems.
"In line with our continuous improvement efforts, we have fully implemented remote power system remote control from the dispatch center, through a SCADA system (supervisory control and data acquisition). This technology represents a significant step forward in our business, optimizing our most complex business processes in every segment of transmission network facility control at different voltage levels," said Mijušković.
Quick response to system challenges, reduced outage response times, and improved efficiency have become key benefits.
Mijušković said that during the past year, CGES continued intensive activities on the construction and reconstruction of the internal transmission network, as well as on the analysis of possibilities and the harmonization of technical solutions for new interconnections.
"I will mention only a few. Activities continued on the completion of our most important ongoing project, the construction of the 400 (kV) transmission line ‘’Čevo – Pljevlja’’, as another segment in connecting Montenegro and Italy power systems. With Intense construction dynamics of the transmission line ‘’Lastva – Pljevlja’’ during the last year, the works in Čevo, Bukovica, KominI, and Javork were finalized, so the project completion reached 95 %", explained Mijušković.
In the meantime, the so-called "emergency" towers were installed in Žabljak. By using the constructed section of this power a complex, combined line 110 kV Lastva - Brezna - Žabljak, consisting of an underground and an overhead part, a little over 100 km long was put into temporary operation.
"It is necessary to point out that the new 110 kV ring has significantly increased the safety of supplying electricity to consumers," said Mijušković.
During the last year, the construction of the 110/35 kV Žabljak substation implemented in GIS technology was completed, (instead of the gas-insulated, air-insulated plant), which is the fourth substation done in this technology in the transmission network of Montenegro.
"By its completion, the conditions are met for the further dynamic development of this area as a winter tourist center because the transformation capacity is increased, and Žabljak receives power at the 110 kV voltage level, thus creating the conditions for a safe and reliable power supply," Mijušković said.
Also, very complicated and demanding works on the reconstruction and extension of the 110/35 kV ‘’Pljevlja1’’subatation, which has been in operation since 1961, have been brought to an end, and its reconstruction and replacement of equipment will enable an increase in the reliability of the power supply and remote control from the SCADA system.
"We are particularly proud of the fact that the professional services and operational staff of CGES successfully replaced the transformers in three substations with larger voltage units with their forces and in a record short time. With this intervention, coastal substations the SS 110/35 kV ‘’Budva’’ and SS 110/35 kV ‘’Ulcinj’’ received the necessary capacity upgrade, enabling a safe and sufficient electricity supply to the consumption of the municipalities of Budva and Ulcinj during the last tourist season", announced Mijušković.
The completion of that work ensured the improvement of the power supply of the Danilovgrad municipality as the 110/35 kV ‘Danilovgrad’’ substation received a transformer of doubled capacity.
When asked what will be the most important projects to be implemented this year, Mijušković emphasized CGES’ readiness to implement this year's ambitious plan, focusing on the improvement of the transmission network to ensure better quality and safer electricity supply.
"Investments will be focused on modernizing the infrastructure, introducing advanced technologies for network supervision and control, and increasing capacity for more efficient energy transmission. This will result in a more stable supply, higher level of system reliability, which will benefit all consumers and contribute to overall economic development," Mijušković believes.
The completion and commissioning of substation ‘’Žabljak’’, worth 4,8 million euros, is planned for this year, followed by the 400 kV Čevo-Pljevlja transmission line, for which more than 49 million euros should be allocated, as well as the completion of all works on the reconstruction of the 110/35 substation kV ‘’Pljevlja 1’’, which will cost CGES three million euros.
"We have also been working on the replacement of the existing conductor on the 110 kV transmission line Perućica - Danilovgrad - Podgorica 1, with a special HTLS conductor, and it is the first time that such equipment has been used in the Montenegrin transmission network. In this way, the transmission capacity is increased, along with the use of existing tower structures which is the key advantage of applying this solution. The value of the project is 2,5 million euros," specified Mijušković.
He has also announced that this year CGES is expected to sign the contract for the construction of the 110/35 kV Luštica substation with connection to the 110 kV network, as well as the contract for the installation of a 250 MVA variable shunt reactor in the ‘’Lastva’’ substation.
"The construction and connection of the ‘’Luštica’’ substation to the transmission network will increase the capacity for connecting new consumers and tourist complexes of the associated consumption while increasing the safety and reliability of the electricity supply to consumers in the entire region. Also, a bidirectional power supply of substation ‘’Kotor’’ will be implemented. Through the installation of a variable shunt reactor in the ‘’Lastva‘’ substation, our company will make an adequate contribution to solving the regional problem of high voltages in the Western Balkans region," Mijušković said.
Ultimately, the construction of the transmission line ‘’Lastva–Pljevlja’’, and other infrastructure projects from the CGES Investment Plan, opens a new perspective towards a green transition, the connection of renewable sources, and the reduction of carbon dioxide (CO2) emissions.
"To achieve a real energy transition, enable the connection of renewable energy sources (RES), improve the efficiency of the electricity network, reduce electricity losses, increase cross-border capacities, and improve the reliability of power supply, CGES has a clear initiative in the direction of building other interconnections, and has, to that end. , already agreed on increase of interstate transmission capacities with transmission system operators in Serbia, Bosnia and Herzegovina (BiH) and Albania," Mijušković said.
As he announced, in the next five years, as provided for in the business plan, CGES will invest about 240 million euros in the construction and maintenance of the electricity transmission network.
When asked what the biggest challenges are for CGES when it comes to increasing the connection of RES to the transmission grid, Mijušković answered that the essence of the green transition was the necessity of efficient electricity transmission, and CGES‘role was to ensure that every kilowatt-hour finds its way to a better future.
"Without us, this transition is not only difficult but also impossible. As a leading energy company dedicated to electricity transmission, we are a key factor in achieving a sustainable energy future. Our mission is clear - to enable the integration of new, renewable energy sources into the power system. Challenges are inevitable, though. To achieve this goal, it is necessary to build and improve the infrastructure that will support this transition to a greener future," said Mijušković.
By investing in energy transmission capacities, we are building the foundations for the development of new energy sources such as solar, wind, and hydropower plants.
"Our infrastructure is the cornerstone of a sustainable energy transition, providing support for new technologies and innovations that will shape our future. Investors continue to show great interest in the connection of RES to the transmission system of Montenegro. The change in legislation in the previous period enabled a simpler procedure for connecting renewable sources of electricity to the transmission system. The simplified procedure, along with the high price of energy on the market, generated great interest from various investors," explained Mijušković.
So far, close to 30 urban-technical conditions (UTU) for large power plants with a total installed capacity of four gigawatts (GW) have been issued.
It is mainly about solar power plants and it concerns the eastern part of Montenegro - the municipalities of Cetinje and Nikšić, and six contracts on the construction of connecting infrastructure and on the connection the total installed power of which is about 1,6 GW have been signed.
"The condition of the transmission network of Montenegro is such that it can receive over 1,5 GW of renewable energy sources after the completion of the construction of the 400 kV ‘’Lastva-Pljevlja’’ transmission line. After that level, it is necessary to further reinforce the transmission network by building various transmission lines, among which there are interconnecting lines 400 kV ‘’Pljevlja - Bajina Bašta’’, 400 kV ‘’Brezna – Sarajevo’’, as well as the reconstruction of the internal 220 kV network, which is certainly one of the biggest challenges for CGES", said Mijušković.
He stressed his commitment to continuous success in all business segments, while, as the Chairman of the Board of Directors, he is proud of his ability to maintain a high standard in the provision of electricity transmission services.
"We will continue to make efforts to remain among the best not only in the energy sector but also in the country. We are determined in our vision of setting new quality standards and providing support to our community," concluded Mijušković.