The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to €15 million to enhance Montenegro’s electricity transmission infrastructure. This financing will facilitate significant upgrades to a vital cross-border transmission line managed by the state-owned company, Crnogorski Elektroprenosni Sistem (CGES).
The project targets the modernization of a 220 kV transmission corridor that connects Montenegro with neighboring Albania and Bosnia and Herzegovina. Upon completion, this upgrade is projected to elevate the line’s capacity to approximately 600 MW, thereby improving regional electricity flow and overall system performance.
Key works will be concentrated on the Montenegrin segment of the transmission line, which extends roughly 100 kilometers. This route begins at the border with Bosnia and Herzegovina, traverses significant infrastructure sites including the Perućica Hydropower Plant and the primary substation in Podgorica, and proceeds towards the Albanian border. The upgrade will incorporate high-temperature, low-sag technology for conductor replacement, enhancing load capacity, efficiency, and reliability.
This infrastructural enhancement is anticipated to alleviate existing transmission bottlenecks and promote greater integration among regional electricity systems. The financing arrangement consists of a 12-year loan supported by a state guarantee from the Montenegrin government, featuring a two-year grace period and an interest rate tied to the six-month Euribor plus a 1% margin.
Through this strategic investment, Montenegro aims to bolster grid resilience and improve cross-border connectivity within the Western Balkans, contributing to a more stable and integrated regional energy market.
