In 2025, Montenegro’s electricity imports accounted for approximately 30% of the nation’s power requirements, as transmission and distribution losses reached nearly 464 GWh. This situation underscores the country’s reliance on external electricity sources and highlights the potential for recovery through network enhancements.
Preliminary energy-balance data from Monstat indicated that domestic electricity production was around 2,398.6 GWh. Total electricity imports reached 5,865.7 GWh, while exports were recorded at 4,833.8 GWh, resulting in net imports of about 1,031.9 GWh.
This data reflects a year marked by significant reliance on imports due to the extended downtime of the Pljevlja thermal power plant, which was undergoing reconstruction. The outage contributed to an electricity import bill nearing €182 million in 2025, a figure that has since dropped to less than €42 million following the plant’s return to operation in 2026.
The Monstat figures reveal that Montenegro produced less than 2.4 TWh of electricity domestically while requiring over 1 TWh of net imported power to maintain balance. Hydropower emerged as the primary domestic energy source, contributing approximately 60.3% of total generation. Thermal generation accounted for around 23.8%, with wind contributing about 12.5%, and solar energy representing roughly 3.4%.
The low thermal generation share is primarily attributed to the prolonged outage of the Pljevlja plant rather than a permanent shift away from coal dependency. The generation mix illustrates Montenegro’s vulnerability to variations in hydrological conditions, as rainfall significantly impacts import needs from year to year.
The government and EPCG are responding to these challenges by expanding investments in wind, solar, and energy storage solutions. However, the data also reveals significant issues related to network losses, which totaled approximately 463.8 GWh, equating to around 13.5% of total electricity requirements.
This figure represents electricity that must be either generated or imported but fails to reach consumers, highlighting inefficiencies within the system. While some losses are technically unavoidable due to heat loss during transmission, high levels often indicate aging infrastructure or overloaded lines.
The scale of these losses becomes evident when compared to industrial consumption, with Montenegro’s entire industrial sector consuming only about 130.4 GWh. Consequently, network losses were more than three times greater than industrial electricity usage.
A reduction in these losses could yield substantial financial benefits without necessitating new power plants. For instance, cutting losses by just 100 GWh could eliminate the need for equivalent production or importation annually, with potential savings depending on wholesale electricity prices.
This scenario presents a compelling case for modernizing networks managed by CEDIS and CGES. Enhancements are particularly crucial as Montenegro integrates decentralized solar generation, electric vehicles, and battery storage systems into its grid.
The current infrastructure primarily designed for one-way electricity flows must adapt to manage generation and consumption across numerous points effectively. Modernization efforts aim not only to mitigate existing losses but also to enhance capacity for future energy assets.
The urgency of addressing network issues is amplified by Montenegro’s planned renewable energy expansion initiatives. Despite issuing numerous planning conditions for solar and wind projects, connectivity remains a critical limitation that hinders new generation from delivering value if it cannot be transported through the grid.
The 2025 electricity balance further illustrates Montenegro’s position in regional trade dynamics. The country imported nearly 5.87 TWh while exporting about 4.83 TWh, indicating a complex role in regional electricity flows rather than a straightforward dependence on foreign power supplies.
This interconnectedness facilitates trading opportunities based on market conditions and system requirements. The net import position of 1.03 TWh serves as a more accurate measure of Montenegro’s underlying dependence on external sources.
Cross-border connections provide economic advantages by allowing trade and management of shortages through links such as the subsea cable to Italy. The government is considering establishing a second cable to Italy; however, effective interconnection relies on a robust domestic system rather than compensating for ongoing supply deficits.
The challenges faced in 2025 serve as lessons for future energy management strategies. With restored domestic production capabilities in 2026 significantly reducing import costs by over three-quarters, long-term objectives focus on diversifying energy sources beyond coal dependency while enhancing network resilience.
The substantial network losses identified should be integrated into overall supply considerations since lost electricity must be compensated at market rates equivalent to what consumers would pay. For Montenegro, addressing both external dependency and internal inefficiencies remains crucial for sustainable energy management moving forward.
