Montenegro has launched a new phase of electricity network modernisation through a strategic partnership between national distribution system operator CEDIS, France’s development agency AFD and EDF International Networks, marking one of the most significant technical cooperation initiatives in the country’s energy sector in recent years. The agreement was signed during the EU–Western Balkans Summit in Tivat in the presence of French President Emmanuel Macron and Montenegrin Prime Minister Milojko Spajić.
The cooperation is designed to modernise Montenegro’s electricity distribution network while strengthening the country’s capacity to manage a rapidly expanding renewable energy pipeline. Under the arrangement, EDF International Networks will provide technical expertise in network planning, digitalisation, investment optimisation and renewable energy integration, while AFD will support preparation of future investment programmes through technical assistance funding.
A key element of the programme is a €290,000 technical assistance grant provided through AFD’s FEXTE facility. The funding will be used to assess the current state of Montenegro’s distribution infrastructure, identify priorities for digital transformation and prepare long-term investment plans that can support future financing packages.
For investors, the significance extends beyond the distribution network itself. Montenegro is experiencing a rapid increase in renewable energy development, particularly in solar and wind projects, creating growing pressure on existing grid infrastructure. Grid readiness has increasingly become a decisive factor for project bankability, influencing connection timelines, curtailment risks and financing conditions. Modernisation of the network therefore has direct implications for renewable energy deployment, industrial electrification and broader economic growth.
The partnership could also unlock additional financing opportunities. According to CEDIS, AFD is considering support for the reconstruction of six 35 kV substations and the modernisation of multiple 10/0.4 kV substations, investments that would strengthen network reliability and improve the integration of distributed renewable generation.
The agreement forms part of a broader French engagement in Montenegro’s energy transition. Earlier cooperation between AFD, transmission system operator CGES and French grid specialist RTE International included a €950,000 technical grant focused on transmission infrastructure upgrades, digital grid management and renewable energy integration. Projects associated with that programme include upgrades to the Perućica and Pljevlja substations, both considered critical assets for maintaining system stability and accommodating new renewable generation.
Montenegro’s energy transition strategy increasingly depends on the ability of both transmission and distribution operators to absorb new renewable capacity. While the country has substantial hydro resources and growing interest from international investors in solar, wind and battery storage projects, network constraints remain one of the principal challenges facing project developers. Grid modernisation therefore sits at the centre of national energy policy, EU integration efforts and future investment planning.
The latest cooperation with EDF and AFD places Montenegro alongside other regional energy systems that are pursuing digital grid technologies, smarter network management and greater flexibility. For renewable energy developers, industrial consumers and infrastructure investors, the initiative signals a move toward a more modern electricity system capable of supporting larger volumes of renewable generation while aligning with evolving European energy market standards.
