The Government of Montenegro has approved a €15 million loan to support investment in the national electricity transmission network, marking another step in reinforcing grid reliability and enabling future energy system development. The financing is intended for Crnogorski Elektroprenosni Sistem (CGES), the country’s transmission system operator, with the state providing a sovereign guarantee.
The loan arrangement has been agreed with the European Bank for Reconstruction and Development, continuing Montenegro’s long-standing cooperation with international financial institutions on strategic energy infrastructure projects. The funds will be directed toward upgrading critical high-voltage assets that form the backbone of the national transmission system.
A central component of the investment program is the reconstruction of the 220 kV Trebinje–Perućica–Podgorica–Koplik transmission line, a key regional corridor that has been in continuous operation for decades. Much of the existing infrastructure dates back more than fifty years and no longer meets modern technical or operational standards, particularly in the context of rising cross-border flows and the growing share of renewable electricity generation connected to the grid.
The planned works include replacement of conductors, insulators, and other essential components, as well as broader technical upgrades designed to increase transmission capacity, reduce outage risks, and improve overall system resilience. The corridor connects Montenegro with neighboring power systems and plays a crucial role in both domestic supply security and regional electricity exchange.
Government officials have emphasized that strengthening the transmission network is a prerequisite for accommodating new renewable energy projects, reducing system bottlenecks, and maintaining stable electricity supply for households and industry. The upgrade is also aligned with Montenegro’s longer-term objective of harmonizing its power infrastructure and regulatory framework with European energy standards.
Implementation of the project is expected to extend over several years, with completion targeted toward the latter part of the decade. Once finalized, the investment is projected to deliver lasting benefits in terms of system reliability, operational efficiency, and Montenegro’s ability to participate more actively in the regional electricity market.
