This project is crucial for integrating 400 MW of renewable energy into the national grid, aiding the country in decarbonizing its economy. Additionally, it will reduce transmission losses by 13 GWh per year and ensure a safe and reliable electricity supply in Montenegro and the broader region by strengthening the Trans-Balkan corridor that connects regional countries to Italy and the EU.
The project involves installing two power transformers and linking them to the national transmission network via the new Lastva-Pljevlja transmission line. These new transformers will elevate the facility's capacity to 400/110 kV, enabling numerous renewable energy power plants, currently in the preliminary development stages by private entities, to connect with the Brezna substation.
The Brezna substation is a vital component of Montenegro's electric transmission system, connecting the 400 kV Cevo-Pljevlja 2 transmission line with the existing power grid to form a 400 kV ring. It also lays the foundation for a potential power link to Sarajevo, an EBRD-supported initiative currently in preliminary planning.
The European Union is contributing a technical assistance grant of €1.05 million from the Western Balkans Investment Framework (WBIF) for developing the feasibility study, environmental and social impact assessment, and preliminary design. Additionally, the EBRD's Shareholder Special Fund has provided €90,000.
As part of the project, the EBRD and the EU will offer capacity-building opportunities and create guidelines to ensure regulators and key local stakeholders can collaborate effectively with CGES, promoting a fair electricity market for renewable energy in Montenegro.
The EBRD is also assisting CGES in obtaining a WBIF investment grant for this project, with a decision expected in December.
Since starting operations in Montenegro in 2007, the EBRD has invested €846 million in 88 projects. The Bank's priorities for the country include supporting private sector competitiveness, facilitating the green transition, and enhancing integration into regional and global markets.
