Montenegrin Grid Operator Secures US$29 Million AFD Loan for Grid Upgrades
Montenegro's transmission system operator CGES (Crnogorski Elektroprenosni Sistem) has signed a $29 million loan (€25 million loan) agreement with the French Development Agency (AFD) to finance upgrades to the country's electricity transmission network. The financing will support investments aimed at strengthening grid reliability, increasing transmission capacity, and facilitating the integration of renewable energy sources.
The project includes the reconstruction and expansion of the Perućica 225/110 kV substation and the replacement of two ageing power transformers at the Pljevlja substation. According to CGES, these investments are intended to improve network stability, reduce system losses, and prepare the grid for additional renewable generation.
Alongside the loan, AFD and RTE International will provide technical assistance for studies covering digital solutions, grid monitoring, and network optimization. The technical support package is designed to help modernize Montenegro's transmission infrastructure and align it with European energy transition objectives.
The financing forms part of Montenegro's broader strategy to modernize its electricity system and strengthen cross-border interconnections as the country advances toward its carbon neutrality and EU integration goals.
Source: vijesti.me
