HomeSEE Energy NewsCGES approves €40 million grid deal for 488 MW Sinjajevina wind connections

CGES approves €40 million grid deal for 488 MW Sinjajevina wind connections

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Montenegro’s electricity transmission operator CGES has approved an arrangement for approximately €40 million of high-voltage infrastructure to connect two wind farms with a combined capacity of 488 MW. The project is intended to advance one of the country’s larger planned renewable electricity developments. The arrangement covers the connection works needed for the planned generation capacity.

400/110 kV substation and connection scope

The investment includes construction of a new 400/110 kV substation and associated transmission connections. The infrastructure is designed to serve the Sinjajevina 1 and Sinjajevina 2 wind projects. Sinjajevina 1 has a planned capacity of 136 MW, while Sinjajevina 2 is planned at 352 MW.

Under the proposed commercial structure, private developers would finance and build the required connection infrastructure before transferring the completed assets to CGES. The transmission operator would then acquire the infrastructure for approximately €40 million. Payments are set to be distributed over ten years.

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Shared infrastructure responsibilities for Sinjajevina 1 and 2

The arrangement sets out responsibilities between renewable energy developers and the regulated network operator. The Sinjajevina 2 consortium, comprising N1, SISTEM-MNE, and Permonte, would construct the common connection infrastructure required by both wind developments. Sinjajevina 1 is being developed separately by Energy 2, but both projects are expected to rely on the same new transmission facilities.

CGES has concluded that the planned network infrastructure would enable Montenegro’s electricity system to accommodate the combined wind capacity. Construction and connection arrangements are described as particularly important for large renewable projects because generation cannot enter commercial operation without sufficient transmission infrastructure. The approach allows private investors to advance the connection works while establishing a mechanism for CGES to incorporate the assets into the regulated electricity network.

Commissioning timeline and regulated returns

The structure provides project developers with a defined route toward network ownership transfer. It also creates responsibility for financing and completing the common infrastructure before CGES acquires the assets. The new facilities are scheduled to become operational in 2030.

CGES expects the investment to begin producing positive regulated returns from 2033. This indicates that recovery of the infrastructure expenditure is expected to extend beyond initial commissioning. The arrangement may serve as a model for other large renewable energy investments requiring substantial grid expansion.

Implications for project delivery and system balancing needs

The commercial outcome of the projects is described as dependent on coordinated construction schedules, technical connection requirements, and timely availability of shared facilities. For Montenegro’s electricity market, significance extends beyond the individual wind farms. Adding nearly 500 MW of planned wind generation would increase renewable generating capacity, with implications for domestic supply, electricity trading, and system balancing.

The investment also reflects a key development requirement that grid infrastructure must be financed and delivered alongside generation assets rather than treated as secondary. Sinjajevina’s planned connection illustrates how transmission investment and renewable project financing are becoming increasingly interdependent .

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