Montenegro’s electricity transmission network is set for a major upgrade after securing new financing from the European Bank for Reconstruction and Development. The lender has approved a loan of up to €15 million to support improvements on a key cross-border transmission line operated by CGES.
The investment focuses on modernizing a 220 kV transmission corridor linking Montenegro with Albania and Bosnia and Herzegovina. Once completed, the project is expected to significantly boost capacity to around 600 MW, enabling stronger regional electricity flows and improved system performance.
A large share of the works will be carried out on the Montenegrin section of the line, which spans approximately 100 kilometers. The route runs from the border with Bosnia and Herzegovina, passes through major infrastructure points such as the Perućica Hydropower Plant and the main substation in Podgorica, and continues toward the Albanian border. The upgrade will involve replacing existing conductors with high-temperature, low-sag technology, allowing higher load capacity, improved efficiency, and greater reliability.
The enhanced infrastructure is expected to reduce transmission bottlenecks and support deeper integration between neighboring electricity systems. The financing package includes a 12-year loan backed by a state guarantee from the Montenegrin Government, featuring a two-year grace period and an interest rate linked to the six-month Euribor plus a 1% margin.
By reinforcing this strategic corridor, Montenegro aims to strengthen grid resilience and enhance cross-border connectivity across the Western Balkans, supporting a more integrated and stable regional energy market.
