Montenegro’s electricity transmission system operator CGES is advancing the modernization of the Brezna substation, awarding a €7.9 million contract for the supply of key transformer equipment as part of a broader €36 million infrastructure upgrade. The contract was signed with a consortium consisting of local company XEnergy and Turkish manufacturer Astor Enerji.
According to the European Bank for Reconstruction and Development (EBRD), the agreement includes the delivery of two 300 MVA three-winding autotransformers designed for 400/115/10.5 kV operation, enabling the Brezna facility to be upgraded from its current 110/35 kV configuration and significantly enhancing its technical capabilities.
The contract also covers engineering and design services, manufacturing, factory acceptance testing, and transport to the site. Additional components include spare parts, installation tools, insulating oil, online monitoring systems, and other supporting services. The equipment delivery and full contract completion are expected by the end of October 2027.
The Brezna substation upgrade is considered a strategically important project for Montenegro’s power system, as it is expected to unlock new transmission capacity for renewable energy. Once completed, the substation will be connected to the national grid via the planned 400 kV Lastva–Pljevlja transmission line, which is still under development.
This future connection is expected to enable at least 200 MW of new renewable energy projects currently in the pipeline to connect to the system. In addition to supporting new generation, the project is also projected to improve overall system efficiency by reducing transmission losses by around 13 GWh per year.
Officials have also linked the Brezna investment to broader regional integration goals. The substation upgrade is viewed as a key step toward a potential future electricity interconnection with Bosnia and Herzegovina, a project supported by the EBRD and currently in early feasibility stages.
To finance the modernization, the EBRD approved a €28 million loan for CGES in 2024, while Montenegro has also applied for an additional €7 million grant from the Western Balkans Investment Framework (WBIF) to support project implementation.
