The Montenegrin government has sanctioned a significant investment aimed at revitalizing its electricity transmission infrastructure, specifically targeting the 220 kV transmission line that links Trebinje, Perucica, Podgorica, and Koplik. This project, which carries an estimated cost of €15 million, is poised to enhance regional electricity connectivity and operational efficiency.
Having been in service for over five decades, the existing transmission line is deemed outdated. The planned modernization will involve replacing aging components with advanced technology, thereby increasing transmission capacity and minimizing the risk of outages. Additionally, this upgrade is expected to facilitate better integration of renewable energy sources, including solar and hydropower.
This reconstruction initiative will be supported financially by the European Bank for Reconstruction and Development (EBRD), marking a strategic advancement in both Montenegro’s energy security and its regional interconnection efforts. The completion of this project is anticipated by the end of 2028, with prospective long-term advantages for residential consumers and commercial enterprises alike.
In a recent governmental session, officials approved the terms of a state-guaranteed loan between the Montenegrin transmission system operator CGES and the EBRD. This loan, capped at €15 million, is intended to bolster the transfer capacity along the crucial 220 kV line.
Preparatory measures for negotiating this state guarantee were initially set in December 2025, laying the groundwork for finalizing financing arrangements throughout 2025 and 2026. The transmission corridor has been progressively commissioned since its inception, with sections such as Trebinje-Podgorica entering service in 1965 and Podgorica-Koplik following in 1972. Currently, the line’s capacity to carry 720 amperes is inadequate in light of the rapid expansion of solar initiatives and the untapped hydropower potential from the Perucica facility.
The upgraded transmission line will extend approximately 100 kilometers from the Bosnia and Herzegovina border to Albania. It is expected to play a vital role in linking both existing and future renewable energy projects to Montenegro’s grid, thus supporting the nation’s transition towards greener energy solutions. With both EBRD financing and state guarantees now confirmed, this project stands as a cornerstone of Montenegro’s renewable energy strategy.
