The immediate neighbourhood

Energy, ports and Corridor VIII in the Balkans: the true Adriatic frontier

Italy’s industrial security does not end at the coasts of Puglia or Abruzzo, but extends through Montenegro, Albania, North Macedonia, Serbia and Bulgaria, all the way to the Black Sea. The Italia–Montenegro electricity interconnector and Corridor VIII are analysed as separate infrastructure projects. The former falls within the remit of energy policy; the latter relates to transport, EU enlargement and NATO’s military mobility. However, they must be considered together

Le dorsali elettriche e il Corridoio VIII, basato su  logistica e porti

10' min read

Translated by AI
Versione italiana

10' min read

Translated by AI
Versione italiana

Italia is shifting an increasing proportion of its energy, logistical and military capabilities across the Adriatic. This is not being achieved through a decision formalised in a single national plan, but through the gradual integration of power cables, ports, railways, roads, substations, digital systems and dual-use corridors. The result could be a new strategic geography: Italy’s industrial security no longer ends at the Apulian coast, but extends through Montenegro, Albania, North Macedonia and Bulgaria, all the way to the Black Sea. The Italia–Montenegro electricity interconnector and Corridor VIII are generally analysed as separate infrastructure projects. The former falls within the remit of energy policy; the latter within transport, European enlargement and, increasingly clearly, NATO’s military mobility. However, they must be considered together. The submarine cable connects the national electricity system to the grids of the Western Balkans. Corridor VIII links the ports of southern Italia to Albania, North Macedonia, Bulgaria and the Black Sea. Both depend on the same conditions: continuity of supply, technological interoperability, efficient border crossings, transport availability, and the maintenance and control of critical nodes. Italia is not merely participating in the construction of two infrastructure projects. It is witnessing the formation of an Adriatic-Balkans-Black Sea operational system.

The Electric Frontier

As at 31 December 2025, Terna reported that the Italia–Montenegro direct current interconnector was 445 kilometres long and had a capacity of 600 MW. At the same time, the Italian operator managed 75,905 kilometres of power lines, 926 substations and four control centres, against an estimated national demand of 311 TWh. When compared with the overall scale of the Italian system, 600 MW may seem insignificant. However, its strategic importance becomes apparent during periods of scarcity, when domestic generation is unavailable, when there are significant price differentials, or when the expansion of renewable energy sources makes it necessary to rapidly absorb and redistribute energy. Operationally, however, the cable does not end on the Montenegrin coast. Its usefulness depends on the ability of electricity to reach Lastva via Montenegro’s internal grid and the interconnections with Serbia and Bosnia and Herzegovina. It depends on substations, 400 kV transmission lines, regional hydroelectric generation, the availability of thermal power stations, weather conditions and the safety margins maintained by Balkan grid operators. The infrastructure, which was inaugurated in 2019, does not end operationally at Lastva on the Montenegrin coast. For the electricity to reach the Adriatic, Montenegro’s internal grid, connections with Serbia and Bosnia and Herzegovina, the substations at Pljevlja, Bajina Bašta and Višegrad, available generation capacity and sufficient safety margins are all required. The European Commission regards the Trans-Balkan Electricity Corridor as a Global Gateway regional project linking Serbia, Montenegro and Bosnia and Herzegovina with Croatia, Hungary, Romania and Italia. In 2022, 84 kilometres of 400 kV power line were completed. Further sections towards Bosnia and Herzegovina are still under preparation.

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LA SPINA BALCANICA

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At the heart of the project is the new 400 kV link between Bajina Bašta in Serbia, Pljevlja in Montenegro, and Višegrad in Bosnia and Herzegovina. The Energy Community estimates its maximum capacity at 1,200 MW and its expected lifespan at between sixty and seventy years. However, its completion requires two preliminary projects: the Serbian section between Obrenovac and Bajina Bašta and the Montenegrin line between Čevo and Pljevlja. The stated aim is to make more efficient use of the connection with Italia, integrate more renewable energy and enhance regional security. If fully implemented, the corridor is expected to increase the net exchange capacity between Montenegro and Serbia by 600 MW in both directions by 2030. Between Bosnia and Herzegovina and Serbia, the estimated increase is 300 MW towards Serbia and 500 MW in the opposite direction. Alongside this backbone is the Gacko-Brezna proposal, a new interconnection between Bosnia and Herzegovina and Montenegro approximately 51 kilometres long, with a maximum capacity of 1,330 MW. The project is expected to alleviate congestion, support renewable energy in eastern Herzegovina and western Montenegro, and reduce annual losses by around 5 GWh in Montenegro and 6.4 GWh in Bosnia and Herzegovina. The network that is taking shape is therefore not that of a single cable, but of an energy ring linking Italia, the Adriatic, the Western Balkans and Central Europe.

CITTÀ, LOCALITÀ E NODI INFRASTRUTTURALI

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The hub of the network is Crnogorski elektroprenosni sistem, the Montenegrin operator CGES. As at 31 December 2025, the State of Montenegro held 55.38 per cent of the share capital, Terna 22.09 per cent and Elektromreža Srbije, the Serbian operator, 15 per cent. Terna and EMS together control 37.09% of the company, without exceeding the Montenegrin public majority but acquiring a unique strategic position within the operator itself. CGES also holds a 14.28% stake in the South East Europe Coordinated Auction Office, the regional centre that coordinates the allocation of cross-border capacity. Control of the corridor therefore does not lie solely with ownership of the power lines: it also concerns auctions, capacity calculation, trade scheduling, IT systems and operational decisions. The shareholder can influence investments; however, the technology provider can influence day-to-day operations without holding a single share. The Brezna substation, in the Montenegrin municipality of Plužine, illustrates how finance and technology intersect. On 3 July 2024, the European Bank for Reconstruction and Development approved a state-guaranteed loan of up to 28 million euros, out of a total cost of 35.92 million, to upgrade the substation from 110 kV to 400 kV and connect it to the future Lastva–Pljevlja line. The project is expected to complete Montenegro’s 400 kV ring network, integrate at least 300 MW of new renewable capacity, and reduce losses by approximately 13 GWh per year. CGES currently operates 59 power lines, approximately 1,512 kilometres of grid and 55 substations. On 2 February 2026, CGES signed a contract with the XEnergy consortium. The company, based in Podgorica, is the lead partner; Astor Enerji, based in Ankara, is the Turkish industrial partner. The supply comprises two autotransformers, design, manufacture, factory testing, transport, mandatory spare parts, installation equipment, insulating oil, supervision, commissioning, basic training and an online monitoring system. This is where the hidden dependency comes to light. Montenegro will physically own the transformers, but its actual autonomy will depend on access to the designs, diagnostic systems, configuration files, spare parts, updates and repair expertise. Turkey is a NATO ally but not an EU Member State: a substation financed by a European bank, controlled by a public operator and in which Terna holds a stake can therefore incorporate critical non-EU technology without any legal contradiction.

The energy and logistics bridges

The same logic applies to Corridor VIII. The corridor is not a single railway line running from Italia to the Black Sea. It is a multimodal network comprising Italian ports, maritime links, Albanian terminals, roads, railway lines, airports, border crossings, tunnels, depots, energy networks and digital platforms. The decisive political step took place on 18 February 2026 with the Tirana Joint Declaration signed by the foreign ministers of Italia, Albania, Bulgaria, North Macedonia and Romania. Corridor VIII is the strategic east-west axis linking the Adriatic and the Black Sea. The declaration also refers to the letter of intent signed at the 2024 NATO Summit in Washington for a harmonised military mobility corridor along the same route. Corridor VIII is therefore no longer merely a Balkan development programme. It has become a European security infrastructure. This transformation assigns Italia a special role. Rome does not control the entire route, but it dominates its western end: the ports, the crossing of the Adriatic, a significant proportion of the logistical services, maintenance capabilities, access to European funding and political coordination with the countries through which the corridor passes.

CORRIDOIO VIII

Dall’Adriatico al Mar Nero. Asse logistico e strategico dell’Europa sud-orientale

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The key hub of the rail corridor in the Western Balkans is the port of Durrës and its link to the Albanian hinterland. On 8 April 2025, the European Investment Bank and the Albanian government signed a European financing package for the modernisation of the 34-kilometre Durres–Rrogozhinë railway line. The operation involves an EU grant of €60.5 million, an EIB loan of €30 million and EBRD co-financing of €30 million, against an estimated total project cost of €121 million. This is more than just a simple restoration of the railway line. It links Albania’s main maritime hub to European funding, procurement procedures and technical standards. Furthermore, it strengthens the physical interface through which Italy’s maritime capacity must integrate into the Balkan land network. The main physical obstacle to the corridor remains the rail link between North Macedonia and Bulgaria. On 6 November 2025, the Bulgarian Deputy Prime Minister and Minister of Transport, Grozdan Karadjov, and the North Macedonian Deputy Prime Minister and Minister of Transport, Aleksandar Nikoloski, signed an agreement at Gyueshevo station concerning the preparation, construction and management of the cross-border rail tunnel. The European Commission has described the infrastructure as an integral part of the TEN-T and as a flagship project of the Global Gateway. The agreement has removed a major diplomatic obstacle, but engineering and implementation risks remain. The construction of tunnels, bridges and tracks may be delayed due to geological conditions, disputes over contracts, inflation and contractors’ performance. More importantly, civil engineering works alone do not guarantee military mobility. The line must also be equipped with a compatible signalling system, electrification, axle load capacity, passing loops, recovery equipment and fast-track border procedures.

Apulia: a strategic platform

Bari, Brindisi and Taranto could form a distributed logistics network. Not three competing ports, but three hubs with distinct roles in Ro-Ro operations, heavy cargo handling, naval support, maintenance, storage, energy supply and emergency diversion routes. Brindisi holds particular political significance. On 27 July 2023, it hosted the first ministerial meeting dedicated to Corridor VIII, during which Italia, Albania, Bulgaria and North Macedonia recognised its economic and strategic importance. But it would be a mistake to turn this centrality into dependence on a single port. Italy’s strategic focus should therefore be the entire port arc of the southern Adriatic, connected to the national road and rail networks and supported by redundant energy capacity. Southern Italy would thus become not merely a transit area, but the western hub of a system extending to the south-eastern flank of the Alliance.

Civil and military capabilities

The transformation of Corridor VIII into a dual-use infrastructure will not depend solely on the completion of the works. A commercial port becomes militarily significant when it can handle heavy vehicles, dangerous goods and priority cargo whilst continuing to handle a substantial proportion of civilian traffic. A railway becomes strategic when bridges, tunnels, axle load, gauge, track length, signalling and rolling stock allow for the continuous passage of heavy trains. Ferries, Ro-Ro ships, flat-bed wagons, locomotives, recovery vehicles, fuel, secure areas and trained staff are also required. The European Commission has recognised this gap between available infrastructure and actual mobility. Under the 2021–2027 financial framework, €1.69 billion has co-financed 95 dual-use projects. For the period after 2028, the Commission has proposed €17.65 billion and has identified around 500 priority projects aimed at removing bottlenecks at bridges, in tunnels, at ports and at airports. This therefore opens up a financial and industrial opportunity of exceptional significance for Italia. However, access to European funding must be structured around integrated programmes, not individual projects. A new quay without a rail link, a railway without a resilient power supply or a substation without cyber security do not constitute strategic capacity. They constitute incomplete investments.

Competition from China and Russia

China’s official policy has consistently regarded the transport infrastructure of Central and Eastern Europe as a gateway for trade, investment and the expansion of the Belt and Road Initiative. In official talks with Bulgaria, Beijing has promoted infrastructure connectivity, transport, aviation, logistics and finance, whilst Bulgaria has presented itself as a potential gateway and hub between Europe and Asia. In 2019, Xi Jinping held official talks in Beijing with Bulgarian President Rumen Radev. The Sofia Guidelines for China–Central and Eastern Europe Cooperation explicitly supported synergies between the Belt and Road Initiative and the TEN-T, the potential extension of transport links to Albanian ports and other regions, and the development of express land-sea links. These documents demonstrate that Beijing views the same geographical area through a connectivity framework encompassing infrastructure, logistics, customs, finance and trade hubs.

L’incontro a Pechino

Il presidente Rumen Radev e il presidente cinese Xi Jinping camminano insieme durante una cerimonia di benvenuto nella Grande Sala del Popolo a Pechino, 3 luglio 2019

Russia’s official transport strategy provides a different but relevant comparison. It defines an international transport corridor not simply as a physical route, but as a combination of routes and the technological, organisational and legal conditions that enable transport. According to the Russian Federation’s transport strategy up to 2030, strategic corridors are systems of governance as much as they are infrastructure. Moscow’s focus is currently on the north-south, east-west and Arctic corridors controlled by Russia, rather than on Corridor VIII; however, its strategic interest lies in preventing NATO from transforming Balkan infrastructure into a resilient, reinforced architecture and in preserving its political and informational influence in south-eastern Europe. The correct assessment is therefore not that Chinese investment is automatically harmful, nor that Russian influence requires formal ownership. The risk lies in opaque contracts, dependence on specific suppliers, access to data, political funding, disinformation, the preparation of acts of sabotage, and dependence on external maintenance or digital systems.

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Italia as an integrator

Italia’s advantage stems from its ability to coordinate aspects that no other regional player possesses simultaneously. Italia has ports on the Adriatic, an electrical engineering industry, shipbuilding, cable manufacturing, rail infrastructure, energy operators, armed forces integrated into NATO, access to European financial mechanisms and well-established political relations with the Western Balkans. The main weakness is therefore not a lack of resources. Rather, it is the absence of a unified coordinating body. What is needed is a permanent structure tasked with considering the electricity corridor and the logistics-military corridor jointly. Not a new bureaucratic body, but a control centre capable of mapping capacities, dependencies, ownership, contracts, spare parts, data, safeguards and restoration times.

The operational test

Between 2027 and 2031, Italia should organise at least one major integrated exercise stretching from the Adriatic to the Black Sea. The exercise should set off from several Italian ports, cross the sea, land in Albania and continue through North Macedonia and Bulgaria, simultaneously involving electricity grids, railways, roads, customs, ports, energy operators and security facilities. This should not be a demonstration designed to succeed, but a stress test designed to cause failures. A substation could be declared out of service. A port IT system could be simulated as having been compromised. A road could be closed. A commercial operator could withdraw a ship. A border crossing could face an administrative delay. A power line could be restricted due to congestion. The outcome would be measured using simple indicators: capacity transferred, tonnage handled, border crossing times, duration of the disruption, percentage of civilian traffic maintained, recovery time and the number of dependencies on external suppliers. The test would not be intended to prove that the corridor is invulnerable. It would serve to identify in advance where it would fail.

Industrial Post

Corridor VIII and the Trans-Balkan electricity grid could reshape Italy’s energy landscape. A more interconnected energy system can offer greater flexibility, integrate new renewable generation and mitigate, at least under certain conditions, price volatility. An efficient logistics corridor can reduce transit times to the Balkans, the Black Sea and the markets of south-eastern Europe. The corridor would thus become not merely a route through which goods pass, but an industrial market governed in part by Italia. This is a challenge that will be decided over the next five years. It demonstrates that the Mediterranean is not only NATO’s southern flank but also the Balkan region, which is very close to Rome both geographically and strategically.

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