Montenegro’s electricity distribution system operator, CEDIS, has unveiled an ambitious investment program aimed at modernizing the country’s electricity distribution infrastructure. The initiative, running through 2029, reflects CEDIS’s commitment to improving the reliability, efficiency, and sustainability of power delivery across the nation.
Recognizing the need for enhanced service quality, CEDIS has set a strategic goal to progressively elevate electricity delivery standards for end users. The planned investments are expected to bring a range of benefits, including increased capacity for new customer connections, better voltage stability, higher supply reliability, and reduced energy losses throughout the distribution system.
Over the course of the investment cycle, more than €250 million will be allocated to capital projects. Of this amount, around €121 million will be financed through favorable loans in partnership with prominent international financial institutions, including the European Bank for Reconstruction and Development (EBRD), the World Bank, Germany’s KfW Bank, and the French Development Agency (AFD).
Four key projects form the backbone of this modernization effort. A €35 million loan from the EBRD will support the digital transformation of the distribution network. This includes the implementation of advanced SCADA (Supervisory Control and Data Acquisition) and ADMS (Advanced Distribution Management System) technologies, as well as the installation of next-generation smart meters. These systems will enable real-time monitoring, remote control, faster response to incidents, and more efficient network management.
The World Bank is backing a separate decarbonization project with a €21 million credit line. This effort involves replacing outdated 35 kV installations at seven substations acquired from transmission system operator CGES and installing 37 new low-loss 35/10 kV transformers to improve energy efficiency and reduce environmental impact.
In collaboration with Germany’s KfW development bank, CEDIS will invest approximately €30 million to replace old shielded substations with modern units. This project, supported by EFSD+ guarantees under the EU’s green development initiative, focuses on reducing transmission losses, lowering operating costs, and boosting overall system efficiency through the installation of energy-efficient transformers.
Additionally, a €35 million partnership with the French Development Agency will fund the reconstruction of six 35 kV installations and upgrades to equipment in around 250 substations operating at 10/0.4 kV. This includes critical infrastructure in Cetinje, Herceg Novi, Danilovgrad, Mojkovac, Podgorica, and Ribarevine. The project is designed to ensure long-term system stability, enhance operational efficiency, and support growing residential electricity demand.
Through these wide-ranging initiatives, CEDIS is reaffirming its commitment to energy transition, improved service for consumers, and alignment with the European Union’s goals for sustainable and green energy development.
