The European Bank for Reconstruction and Development (EBRD) is extending a sovereign-guaranteed loan of up to €28 million ($30.5 million) to Crnogorski Elektroprenosni Sistem (CGES) for upgrading the Brezna electrical substation in north-western Montenegro. This project aims to integrate 400MW of renewable energy into the national grid, facilitating the country's efforts to decarbonize its economy.

The upgrade will involve installing two power transformers and connecting them to the national transmission network via the new Lastva – Pljevlja transmission line. This will enhance the substation's capacity to 400/110kV, enabling the connection of renewable energy plants currently under development by private entities. Additionally, the project will reduce transmission losses by 13GWh/year, securing a safe and reliable electricity supply in Montenegro and strengthening the Trans-Balkan corridor, which links regional countries to Italy and the EU.

The European Union is contributing a technical assistance grant of €1.05 million ($1.14 million) from the Western Balkans Investment Framework (WBIF) for the feasibility study, environmental and social impact assessment, and preliminary design. The EBRD’s Shareholder Special Fund has also provided €90,000 ($98,000).

This project is a crucial part of Montenegro’s electric transmission system, connecting the 400kV Cevo – Pljevlja 2 transmission line with the national grid to form a 400kV ring. It also sets the foundation for a potential power link to Sarajevo, an initiative supported by the EBRD in its preliminary stages.

The EBRD and the EU will also offer capacity-building opportunities and develop guidelines to ensure regulators and stakeholders can collaborate effectively with CGES, promoting a fair electricity market for renewable energy. Since beginning operations in Montenegro in 2007, the EBRD has invested €846 million ($921.1 million) in 88 projects, prioritizing private sector competitiveness, the green transition, and regional market integration.

Source: smart-energy.com