Montenegro to modernise grid with €950,000 grant
The grant was signed in the presence of Milojko Spajić, prime minister of Montenegro, Novica Vuković, minister of Finance of Montenegro and Anne-Marie Maskay, ambassador of France to Montenegro. Image courtesy CGES.
Montenegro TSO Crnogorski Elektroprenosni Sistem AD (CGES) has secured a grant of €950,000 (approximately $995,771) to modernise the grid, including physical infrastructure upgrades and deployment of digital solutions.
Montenegro, a 13,812km² Balkan country on the Adriatic Sea, is seeking to upgrade its power grid to integrate more sources of renewables power.
To do so, the grant agreement on technical support was signed between CGES, the French Development Agency (AFD), and RTE International (RTEi).
The funds will be used to rebuild and extend the Perućica substation (225/110 kV) and replace two ageing autotransformers at the Pljevlja substation, both crucial to the stability of the national grid. The objective is to enhance Montenegro’s grid capacity to integrate new renewable energy sources and reduce losses, contributing to Montenegro’s commitment to achieving carbon neutrality by 2050.
The cooperation programme also includes studies on deploying digital solutions and optimising Montenegro’s grid management and monitoring.
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The AFD, as part of its mandate to support European convergence and green transition in the Balkans, is funding this strategic project with the technical expertise of RTE International, a subsidiary of France’s electricity transmission operator RTE.
Commenting in a release was Ivan Asanović, Chief Executive Officer at CGES: “We are delighted to embark on this collaboration, which will strengthen Montenegro’s energy security and prepare the country to meet the demands of the European energy market.”
Added Cyrille Bellier, vice president for Europe, Middle East, Asia at AFD: “This agreement with CGES highlights our shared commitment to supporting energy transition and sustainable development in the Western Balkans, in order to help align their energy transition with the requisites of the European Union.”
In addition to strengthening Montenegro’s electric infrastructure, the project is hoped to serve as a model of cooperation between CGES and RTEi, reinforcing France’s role in supporting Montenegro’s move toward a green economy.
On behalf of RTE international, the contract was signed by Thierry Buhugiar.
Montenegrin power grid modernisation
The grant agreement follows announcement earlier this month of a project to decarbonise the country’s energy sector, in particular by improving the energy efficiency of public facilities and increasing the operational efficiency of the distribution network.
The project, a result of credit negotiations between the country and the International Bank for Reconstruction and Development (IBRD), values €33.8 million ($35.6 million), of which €31 million ($32.7 million) will be provided by the IBRD and the latter from the State.
The project consists of three components: reconstruction of 35kV switchgear in 110/35kV substations, transformer replacements and pilot investments to improve the visibility of the network, which involves the installation of smart meters and sensors in the low voltage network.
The energy sector decarbonisation project is planned to be approved at the meeting of the board of directors of the IBRD, scheduled for December 12, 2024, according to the Montenegrin government in a release.
