/LONDON, March 13, 2026, 10:00 GMT, RENEWABLE MARKET WATCH™/ The European Bank for Reconstruction and Development (EBRD) has announced its commitment to support Montenegro’s energy infrastructure by extending a loan of up to €15 million to Crnogorski Elektroprenosni Sistem (CGES), the nation’s electricity transmission system operator. This financial assistance is aimed at facilitating the comprehensive upgrade of a crucial 220 kV overhead transmission line that serves as a vital link between Montenegro and its neighbouring countries, Albania and Bosnia and Herzegovina.
This upgrade project is set to significantly enhance the capacity of the power transmission corridor that connects Trebinje in Bosnia and Herzegovina with Perućica and Podgorica in Montenegro, ultimately reaching Vau i Dejes in Albania. The current infrastructure will see its capacity effectively doubled to approximately 600 MW. Key components of this upgrade include the replacement of existing conductors on the Montenegrin section of the transmission line. The new conductors will be advanced high-temperature low-sag types, designed to improve overall efficiency and reliability. This 220 kV overhead transmission line extends from the border with Bosnia and Herzegovina, passing through essential substations, including the Perućica hydropower plant and the principal Podgorica substation, and concluding at the border with Albania.
The successful implementation of this project is expected to not only enhance the reliability and efficiency of electricity transmission across Montenegro but also strengthen cross-border energy connectivity within the Western Balkans. This initiative marks a significant step towards greater regional energy integration, promoting collaborative energy exchange and improved stability in electricity supply across the region.
The agreement for this initiative was officially signed by notable figures, including Mark Bowman, the EBRD Vice-President for Policy and Partnerships; Ivan Asanović, the CEO of CGES; and Novica Vuković, Montenegro’s Minister of Finance, underscoring the collaborative effort and commitment to fostering energy development in Montenegro and the broader region.
Mr Bowman said: “Strengthening electricity transmission networks is essential for energy security and regional integration in the Western Balkans. This project will modernise critical infrastructure in Montenegro and support a more reliable and resilient power system, in line with the EBRD’s commitment to sustainable infrastructure development.”
Mr Asanović said: “This investment is much more than just the modernisation of a transmission line – it is an investment in a secure, stable and better-connected energy future for the region. By upgrading the 220 kV link between Bosnia and Herzegovina, Montenegro and Albania, we are improving the reliability of electricity transmission and further strengthening energy connectivity in the Western Balkans. Increasing the line’s capacity from 300 MW to around 600 MW is an important step towards a more resilient grid that can respond to the growing needs of the system and increasingly intensive regional cooperation. We thank the EBRD for recognising the importance of the investment and supporting a project that improves the stability and connectivity of the region’s power systems.”
Mr Vuković said: “Through the guarantee provided by Montenegro’s Ministry of Finance, the country is reaffirming its commitment to supporting strategic investments that strengthen national energy infrastructure and regional connectivity. This is not the first time the Ministry has supported major projects to develop and modernise the energy sector, and we remain determined to back initiatives that contribute to the long-term stability and sustainability of Montenegro’s energy system. We appreciate the continued partnership with the EBRD, whose support helps deliver projects that are important for Montenegro’s economic development and regional integration.”
The European Bank for Reconstruction and Development (EBRD) has established itself as a prominent institutional investor in Montenegro, having invested over €1 billion across more than 100 projects since its inception in the country. These investments aim to bolster Montenegro’s sustainable development across sectors, enhance essential infrastructure, promote private-sector growth, and facilitate greater regional integration. By supporting initiatives that align with these goals, the EBRD plays a crucial role in fostering economic stability and growth, ultimately contributing to the advancement of Montenegro’s overall socio-economic landscape.
For more information and answers to your questions about the solar, wind and energy storage market in Montenegro, Albania and Bosina and Herzegovina and related content, you may read here: you may read here: Western Balkans Solar Photovoltaic (PV), Wind and BESS Power Market Outlooks 2025 ÷ 2034
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