Montenegro’s electricity transmission system, operated by Crnogorski elektroprenosni sistem (CGES), has sufficient capacity to accommodate all new solar power plants planned through the country’s first state auction for market premiums (financial incentives) for solar energy projects.
The maximum installed capacity allowed under the auction is 500 megawatts (MW), and the transmission network is prepared to absorb this capacity following established connection procedures. The auction, opened on July 11, 2025, offers private investors the opportunity to build solar plants of at least 400 kilowatts anywhere in Montenegro, competing by offering the lowest price per megawatt-hour, with a maximum allowed price of 65 euros per MWh.
CGES manages over 1,500 km of high-voltage transmission lines (110 kV, 220 kV, and 400 kV) and 30 substations, connecting large power plants and enabling electricity trade with neighboring countries, including Italy. While areas with high-voltage infrastructure have greater connection potential, all regions can accommodate solar plants, although connection requirements and infrastructure vary by location.
Each project undergoes an individual study to define connection points, infrastructure needs, energy metering, and purchase terms. Investors must submit connection requests and provide at least 50% of the capacity of the plant they propose to build.
CGES is obligated by law to prepare ten-year transmission development plans every three years, based on inputs from network users and relevant stakeholders. The latest plan for 2023–2032 includes over €200 million in investments to expand the transmission network and support renewable energy integration.
The connection process requires investors to obtain urban-technical permits, submit formal requests, and sign infrastructure construction contracts with CGES, which may either build the connection infrastructure or oversee the investor’s construction. CGES coordinates technical approvals and project supervision.
If multiple projects receive contracts simultaneously, the connection procedure remains regulated by current energy laws, and the auction is not expected to disrupt this process. Many planned projects have capacities large enough to cover the entire auction quota individually.
Additionally, if connection infrastructure is shared by multiple investors or essential for system operation, CGES is legally required to purchase the infrastructure from investors in up to 20 annual installments based on independent valuations, with purchase agreements signed within six months of project completion. This mechanism supports financing complex projects like those involved in the auction.
