Montenegro has approved a major investment to strengthen and modernize its electricity transmission network, paving the way for a project valued at up to €15 million. The initiative focuses on reconstructing the critical 220 kV transmission line connecting Trebinje, Perucica, Podgorica, and Koplik, a backbone corridor for regional electricity flows.
The line has been in operation for over five decades, and authorities note that its overhaul is long overdue. By replacing aging infrastructure with modern equipment, the project is expected to increase transmission capacity, reduce the likelihood of outages, and improve the integration of renewable energy such as solar and hydropower.
The reconstruction will be financed with support from the European Bank for Reconstruction and Development (EBRD) and is considered a strategic step for Montenegro’s energy security and regional interconnection. Works are scheduled for completion by the end of 2028, with long-term benefits for both households and businesses.
At its latest session, the government approved the results of negotiations for a state-guaranteed loan between the Montenegrin transmission system operator CGES and the EBRD. The loan, capped at €15 million, will fund the increase in transfer capacity along the 220 kV line.
Preparatory decisions for negotiating the state guarantee were initially adopted in December 2025, establishing the framework for concluding financing arrangements during 2025–2026. The transmission corridor was commissioned in stages, with the Trebinje-Podgorica section entering service in 1965 and the Podgorica-Koplik section in 1972. The line’s existing current-carrying capacity of 720 amperes is no longer sufficient, particularly given the rapid growth of solar projects and untapped hydropower potential from the Perucica plant.
The modernized line, spanning roughly 100 kilometers from the Bosnia and Herzegovina border to Albania, will play a crucial role in connecting both existing and planned renewable energy capacities to Montenegro’s transmission grid, supporting the country’s green transition. With the EBRD loan and state guarantee approved, the project is recognized as a key pillar of Montenegro’s renewable energy strategy.