The European Bank for Reconstruction and Development (EBRD) has granted a state-backed loan of up to €28 million to Montenegro’s power transmission system (CGES) for upgrading the Brezna substation in the country’s northwest.
The EBRD highlights the project’s importance as it will enable the integration of 400 megawatts (MW) of renewable energy into Montenegro’s national grid, contributing to the country’s decarbonization efforts.
- The upgrade will also reduce transmission losses by 13 GWh annually and ensure a stable and reliable electricity supply for both Montenegro and the broader region. It will enhance the Trans-Balkan Corridor, which links the region with Italy and the European Union (EU), the EBRD statement notes.
The project involves installing two new electrical transformers and connecting them to the national transmission network via a new transmission line from Lastva to Pljevlja.
These new transformers will boost the substation’s capacity to 400/110 kV, allowing a greater number of renewable energy plants to connect to the Brezna substation, which is currently under preliminary development by private entities.
The Brezna substation is a key part of Montenegro’s power transmission network, linking the 400 kV ČEVO – Pljevlja 2 line with the existing grid to form a 400 kV ring.
The upgrade also sets the stage for a potential energy connection to Sarajevo, a project supported by the EBRD and currently in preliminary planning.
The EU is contributing €1.05 million in technical assistance from the Western Balkans Investment Framework (WBIF) for feasibility studies, environmental and social impact assessments, and preliminary design. Additionally, a special EBRD shareholders’ fund has contributed €90,000.
- As part of the project, the EBRD and EU will provide capacity-building support and develop guidelines to ensure that regulators and other key local stakeholders can effectively collaborate with CGES to create a level playing field for renewable energy in Montenegro, the statement adds.
EBRD is also helping CGES secure a WBIF investment grant for the project, with a decision anticipated in December.
Since starting operations in Montenegro in 2007, the EBRD has invested €846 million across 88 projects. The bank’s focus in Montenegro includes boosting private sector competitiveness, advancing green transition, and further integrating the country into regional and global markets.
