Ljubljana, 29 October (STA) - Construction finally seems set to begin on an 80km power line creating a much-needed link between Slovenia's and Hungary's power grids after more than two decades of planning. The Slovenian Energy Agency recently approved funding for the project after a solution had been found for 1.2km of the line running in Croatian territory.

Grid operator ELES has told the STA that it had signed in January a preliminary agreement with HOPS, the Croatian grid operator, under which HOPS would build the 1.2km segment of the line.

The 400kW line between Cirkovce, a town near Ptuj, and Pince, a village on the border with Hungary, is set to be complete in the first half of 2021. The project is estimated to cost between EUR 120m and EUR 130m and will be partly funded by the EU.

The new power line will improve the reliability of Slovenia's grid system and allow the country to access eastern electricity markets.

This being an international power line, operated by ELES, HOPS and Hungarian grid operator MAVIR, ELES will not be required to pay for the use of the segment stretching into Croatia.

Moreover, ELES and HOPS will divide any potential profits from commercial projects between Slovenia and Hungary. The shares depend on investment, which means that HOPS will be eligible to 1.5% of potential profits, according to ELES.

Initial plans saw the new power line running entirely over Slovenian territory. However, this placed the lines very close to homes in the village of Gaberje and the locals revolted.

A civil initiative in Ljutomer also had a number of complaints, but ELES said that agreements had been reached with land owners and that this was no longer standing in the way of construction.

Documents lodged with the Energy Agency by ELES indicate that construction permit is yet to be requested.