High-voltage link for Sinjajevina 1 and Sinjajevina 2
Montenegro’s electricity transmission operator CGES has approved an arrangement covering approximately €40 million of high-voltage infrastructure to connect two wind farms with a combined capacity of 488 MW. The plan is aimed at advancing one of the country’s larger planned renewable electricity developments. The investment includes construction of a new 400/110 kV substation and associated transmission connections for the Sinjajevina 1 and Sinjajevina 2 projects.
Sinjajevina 1 has a planned capacity of 136 MW, while Sinjajevina 2 is planned at 352 MW. CGES has concluded that the network infrastructure would enable the electricity system to accommodate the combined wind capacity. Construction and connection arrangements are described as particularly important because generating capacity cannot enter commercial operation without sufficient transmission infrastructure.
Financing, asset transfer and responsibilities
Under the proposed commercial structure, private developers would finance and build the required connection infrastructure before transferring the completed assets to CGES. CGES would then acquire the infrastructure for approximately €40 million, with payments spread over ten years. The arrangement sets out a division of responsibilities between renewable energy developers and the regulated network operator.
The Sinjajevina 2 consortium, made up of N1, SISTEM-MNE and Permonte, would construct the shared connection infrastructure needed by both wind developments. Sinjajevina 1 is being developed separately by Energy 2, but both projects are expected to rely on the same new transmission facilities. The approach allows private investors to advance connection works while establishing a mechanism for CGES to incorporate the assets into the regulated electricity network.
Timetable, returns and system implications
The new facilities are scheduled to become operational in 2030. CGES expects the investment to start generating positive regulated returns from 2033, extending recovery beyond initial commissioning. For project developers, the structure provides a defined route toward network ownership transfer while also creating responsibility for financing and completing the common infrastructure before CGES acquires it.
The arrangement may be used as a reference model for other large renewable energy investments requiring substantial grid expansion. CGES says project outcomes will depend on coordinated construction schedules, technical connection requirements, and timely availability of shared facilities. For Montenegro’s electricity market, adding nearly 500 MW of planned wind generation would increase renewable capacity and could affect domestic supply, electricity trading and system balancing needs.
The planned connection also reflects a key development issue for renewables: grid infrastructure needs to be financed and delivered alongside generation assets rather than treated as secondary.
