EBRD backs upgrade of Montenegro’s electricity transmission network

• EBRD provides up to €15 million to Montenegro’s electricity transmission system operator, Crnogorski Elektroprenosni Sistem
• Financing to support upgrade of a 220 kV overhead transmission line linking Montenegro with Albania and Bosnia and Herzegovina
• Project will improve reliability and efficiency of electricity transmission and strengthen cross‑border connectivity in the region

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €15 million to Montenegro’s electricity transmission system operator, Crnogorski Elektroprenosni Sistem (CGES), to support the upgrade of a 220 kV overhead transmission line linking the country with Albania and Bosnia and Herzegovina.

The upgrade will help double the capacity of the Trebinje (Bosnia and Herzegovina)-Perućica (Montenegro)-Podgorica (Montenegro)-Vau i Dejes (Albania) power transmission corridor to around 600 MW. It will primarily involve replacing existing conductors on the Montenegro section of the line with advanced high-temperature low-sag conductors along the 220 kV overhead transmission line that runs through Montenegro, from the border with Bosnia and Herzegovina, through key substations at the Perućica hydropower plant and the main Podgorica substation, to the border with Albania.

The project will improve the reliability and efficiency of electricity transmission in Montenegro and strengthen cross‑border connectivity in the Western Balkans, contributing to greater regional energy integration.

The agreement was signed by EBRD Vice-President for Policy and Partnerships, Mark Bowman, CGES CEO, Ivan Asanović, and Montenegro’s Minister of Finance, Novica Vuković.

Mr Bowman said: “Strengthening electricity transmission networks is essential for energy security and regional integration in the Western Balkans. This project will modernise critical infrastructure in Montenegro and support a more reliable and resilient power system, in line with the EBRD’s commitment to sustainable infrastructure development.”

Mr Asanović said: “This investment is much more than just the modernisation of a transmission line – it is an investment in a secure, stable and better-connected energy future for the region. By upgrading the 220 kV link between Bosnia and Herzegovina, Montenegro and Albania, we are improving the reliability of electricity transmission and further strengthening energy connectivity in the Western Balkans. Increasing the line’s capacity from 300 MW to around 600 MW is an important step towards a more resilient grid that can respond to the growing needs of the system and increasingly intensive regional cooperation. We thank the EBRD for recognising the importance of the investment and supporting a project that improves the stability and connectivity of the region’s power systems.”

Mr Vuković said: “Through the guarantee provided by Montenegro’s Ministry of Finance, the country is reaffirming its commitment to supporting strategic investments that strengthen national energy infrastructure and regional connectivity. This is not the first time the Ministry has supported major projects to develop and modernise the energy sector, and we remain determined to back initiatives that contribute to the long-term stability and sustainability of Montenegro’s energy system. We appreciate the continued partnership with the EBRD, whose support helps deliver projects that are important for Montenegro’s economic development and regional integration.”

The EBRD is a leading institutional investor in Montenegro, with over €1 billion invested through more than 100 projects to date, supporting the country’s sustainable development, infrastructure, private-sector growth and regional integration.