BAKU, Azerbaijan, September 20. The European Bank for Reconstruction and Development (EBRD) is considering extending a sovereign-guaranteed loan of up to 15 million euros to Crnogorski Elektroprenosni Sistem AD (CGES), Montenegro’s transmission system operator, Trend reports citing the EBRD's latest reports.
The financing will support the upgrade of the Trebinje (Bosnia and Herzegovina) – Peruiica (Montenegro) – Podgorica (Montenegro) – Vau i Dejes (Albania) power transmission corridor, increasing its capacity from around 300 MW to 600 MW. The project will involve replacing existing conductors with High Temperature Low Sag (HTLS) conductors along the 220 kV overhead transmission line running through Montenegro.
The upgrade is expected to strengthen regional energy connectivity and grid resilience across the Western Balkans. It will facilitate the integration of new renewable energy power plants, significantly reduce transmission losses, and support Montenegro’s alignment with EU energy market standards.
According to the EBRD, the project has an ETI score of 76 and targets two transition impact qualities: Resilient—through technical cooperation to improve CGES governance and regional market coupling readiness, and Green—by enabling more renewable energy connections and cutting CO2 emissions.
CGES operates Montenegro’s high-voltage transmission network, managing 59 lines with a combined length of about 1,512 km and 55 transformer units with a total transformation capacity of 4,166 MVA. The company plays a key role in regional integration, maintaining interconnections with Serbia, Kosovo, Bosnia and Herzegovina, Albania, and Italy via a strategic undersea cable.
The total cost of the project amounts to 17 million euros, of which 15 million euros will be financed by the EBRD.
