The Montenegrin government has sanctioned a significant investment aimed at enhancing its electricity transmission infrastructure, with a project budget reaching up to €15 million. This initiative is centered on the reconstruction of a vital 220 kV transmission line that links Trebinje, Perucica, Podgorica, and Koplik, serving as a crucial corridor for regional electricity distribution.
Having been operational for over five decades, the existing transmission line is deemed in urgent need of modernization. The planned upgrades will replace outdated components with modern technology, which is anticipated to increase the line’s transmission capacity, minimize outage risks, and facilitate better integration of renewable energy sources such as solar and hydropower.
This reconstruction effort will be supported financially by the European Bank for Reconstruction and Development (EBRD) and is viewed as an essential measure for bolstering Montenegro’s energy security while enhancing regional interconnections. Completion of the project is targeted for the end of 2028, promising long-term advantages for both residential consumers and commercial enterprises.
During its recent session, the Montenegrin government approved negotiations for a state-backed loan between the national transmission system operator CGES and the EBRD. This loan, capped at €15 million, is specifically allocated to augmenting the transfer capacity along the critical 220 kV line.
Initial preparations for securing this state guarantee began in December 2025, setting the stage for financing arrangements to be finalized between 2025 and 2026. The transmission corridor has been developed incrementally; sections were commissioned in stages starting with Trebinje-Podgorica in 1965 and Podgorica-Koplik in 1972. The current carrying capacity of 720 amperes is now inadequate given the burgeoning solar projects and significant hydropower potential from the Perucica facility.
The upgraded line will extend approximately 100 kilometers from the Bosnia and Herzegovina border to Albania. It is expected to play an integral role in linking both existing and future renewable energy projects to Montenegro’s transmission grid, thereby supporting the nation’s transition towards greener energy solutions. With both EBRD financing and state guarantees secured, this project stands as a pivotal element of Montenegro’s renewable energy strategy.
