The transfer of the Serbian section of the 110 kV Nijemci-Sid line to EMS marks a significant change in cross-border energy management.
- HOPS transferred ownership of the Serbian section to EMS for €125,000.
- The change simplifies maintenance and future investments for both operators.
- Severe storms in July 2023 highlighted the urgency of this transfer.
Croatian transmission operator HOPS has transferred ownership of the Serbian section of the 110 kV Nijemci-Sid interconnection to Serbian grid operator EMS, ending an unusual ownership arrangement that had complicated repairs on the cross-border power line.
The Serbian assets were acquired for about €125,000. The two operators will now own and manage the parts of the line located on their own territory, which should simplify maintenance and future investment.
The issue became more urgent after severe storms damaged the line in July 2023. HOPS said more than 35% of the 12.66-kilometre Croatian section was destroyed or seriously damaged, while more than 40% of the roughly 12.5-kilometre Serbian section suffered substantial damage.
HOPS repaired its own section during 2023 and early 2024, spending more than €950,000, but it could not rebuild the assets in Serbia because it did not have legal authority to carry out works there. The company proposed the transfer of the Serbian assets to EMS in August 2023, and the purchase contract was signed in November 2023.
The line was built in 1976, when the two countries were part of Yugoslavia. HOPS retained ownership of the full interconnection for decades, even though about half of it lies in Serbia. Although the infrastructure had a net book value of zero, independent valuations put its market value at between €120,000 and €129,000.
The Croatian government said the arrangement produced financial benefits for HOPS of more than €1 million, including avoided reconstruction costs of about €900,000 on the Serbian side. Croatian authorities also reviewed the deal because of unresolved border-demarcation issues, but concluded that the asset transfer would not affect either country’s position in future negotiations.
For the regional power grid, the change removes a legal obstacle on a line that links Serbia and Croatia and allows the two operators to handle repairs and investment separately on their own territory.
Frequently asked questions
What is the significance of the EMS acquisition?
The acquisition simplifies the management and maintenance of the power line, allowing each operator to handle repairs independently.
How much did EMS pay for the Serbian section?
EMS acquired the Serbian section for approximately €125,000.
Why was the transfer necessary?
The transfer was necessary due to complications in repairs caused by the unusual ownership arrangement and damage from severe storms.
When was the purchase contract signed?
The purchase contract was signed in November 2023.
What impact did the storms have on the power line?
The storms damaged over 40% of the Serbian section and more than 35% of the Croatian section, necessitating urgent repairs.
