The Montenegrin transmission system operator, CGES, is in the final stages of upgrading the Budva–Lastva and Lastva–Tivat transmission lines, part of a grid modernization initiative valued at approximately €1 million. This project encompasses 17 kilometers of 110 kV infrastructure, involving the replacement of conductors, insulators, suspension equipment, and connection hardware. The main goal is to enhance transfer capacity and ensure a reliable power supply along the coastal region.
This upgrade is crucial as it impacts the electricity network serving Budva, Tivat, Kotor, and Herceg Novi, where demand for electricity surges during the summer tourist season. The project is not merely a maintenance effort; it reinforces one of Montenegro’s most economically significant load areas, which relies on stable electricity for hotels, marinas, airports, residential developments, and seasonal services.
Additionally, the reconstruction enhances the functionality of the 400/110/35 kV Lastva substation and bolsters Montenegro’s interconnection with Italy. CGES is utilizing modern high-temperature low-sag conductors that allow for increased transfer capacity without necessitating a new corridor. This approach is particularly relevant in the coastal area, where land limitations and regulatory requirements complicate traditional grid expansion efforts.
For investors, this development highlights that Montenegro’s coastal economy is becoming increasingly electricity-dependent. The upgraded grid must accommodate growth in tourism, real estate development, electrification efforts, renewable energy integration, and cross-border power flows. Investments like this €1 million project can provide significant systemic value by reducing outage risks, enhancing voltage stability, and increasing the viability of coastal projects that depend on dependable network capacity.
This initiative aligns with a wider investment strategy by CGES. Earlier in 2026, CGES partnered with the EBRD to unveil a €15 million financing plan aimed at modernizing a regional 220 kV corridor connecting Bosnia and Herzegovina, Montenegro, and Albania. This upgrade is expected to elevate transfer capacity from around 300 MW to approximately 600 MW.
These enhancements indicate a shift in Montenegro’s transmission grid from a passive infrastructure component to an essential economic asset. The coastal network is evolving beyond merely supporting summer peak demand; it is becoming vital for tourism growth, real estate financing, renewable energy integration, and establishing Montenegro as a strategically positioned electricity transit hub between the Adriatic region, the Balkans, and the EU power system.
