The European Bank for Reconstruction and Development (EBRD) is providing a sovereign-guaranteed loan to Crnogorski Elektroprenosni Sistem (CGES) for the upgrade of the electrical substation Brezna in north-western Montenegro.  

The project also benefits from significant EU funding under the Western Balkans Investment Framework (WBIF).

The substation Brezna is the largest project the EBRD has signed in the country so far this year, which will not only secure a safe and reliable electricity supply, reducing transmission losses but will also integrate 400 MW of renewable energy into the national grid, thus helping the country to decarbonise its economy.

The works involve installing two power transformers and connecting them to the national transmission network via the new Lastva - Pljevlja transmission line, which is currently being developed. 

The new transformers will bring the facility’s capacity up to 400/110 kV which means that a large number of renewable energy power plants can be connected with the Brezna substation, presently in the preliminary stages of development by private entities. 

The European Union is providing a technical assistance grant of €1.1 million through the WBIF to develop the feasibility study, an environmental and social impact assessment, and the preliminary design. 

As part of the project, the EBRD and the EU will provide capacity-building opportunities and create guidelines where needed so that the regulators and other key local stakeholders can work effectively with CGES in making the electricity market in Montenegro a level playing field for renewable energy. 

The Brezna substation is an important part of the Montenegrin electric transmission system as it connects the 400 kV Cevo - Pljevlja 2 transmission line with the country’s existing power grid to form a 400 kV ring. It also lays the groundwork for a prospective power link to Sarajevo, an initiative supported by the EBRD that is in the preliminary planning stages.

The upgrade forms part of the Trans-Balkan Electricity Corridor, a flagship investment of the EU’s Economic and Investment Plan and the Connectivity Agenda. The EU, in partnership with financial institutions and beneficiary economies through the WBIF, contributes to establishing a regional transmission corridor connecting the electricity systems of Montenegro, Serbia and Bosnia and Herzegovina to Croatia, Hungary, Romania and Italy.

Trans-Balkan Electricity Corridor Factsheet, October 2024