Montenegro is on track to begin its digital integration with the unified European electricity market between late 2026 and early 2027, with full integration anticipated by the end of 2036 or early 2037, according to Ivan Bulatović, CEO of state-owned power utility EPCG.
This step marks a major transformation for Montenegro’s energy sector, paving the way for the introduction of advanced market mechanisms such as a day-ahead market and access to regional balancing tools. These developments are expected to enhance market transparency, improve portfolio and product evaluation, and create a more stable, investment-friendly energy environment.
The Montenegrin government has made a strategic commitment to align with the EU market. Ongoing discussions between energy regulators, transmission system operators, and electricity exchanges in Montenegro and Italy are shaping the integration process. A crucial element in this effort is the undersea power cable connecting Montenegro and Italy, operational since 2019, which currently supports a one-way transmission capacity of 600 MW.
Plans are already underway to install a second cable, which will double the capacity to 1,200 MW and enable two-way electricity flow. Both countries have completed the necessary land-based infrastructure, and the expansion is expected to begin soon.
As part of its regional engagement, Montenegro’s Ministry of Energy confirmed that its transmission operator CGES and electricity exchange MEPX have secured preliminary participation in the Italian Borders Working Table (IBWT) initiative. This platform, involving EU countries such as Austria, France, Greece, and Italy, seeks to harmonize the operational framework for coupling national electricity markets.
Montenegro has already made progress toward European standards with the launch of its organized day-ahead electricity market in April 2023, operated by BELEN, which was established in 2017 by CGES, EPCG, and energy market operator COTEE. The upcoming integration represents a key milestone in Montenegro’s journey toward becoming a fully connected player in the European energy landscape.
