Montenegro's state-owned transmission system operator, Crnogorski Elektroprenosni Sistem (CGES) has initiated a procurement process for 400/110 kV, 300 MVA power transformers as part of a €36 million upgrade of the Brezna substation in the country's northwest.

The project, backed by the European Bank for Reconstruction and Development (EBRD), will upgrade the existing 110/35 kV facility to a 400/110/35 kV substation. The upgrade includes the installation of two new power transformers and integration into the national transmission grid via the planned 400 kV Lastva-Pljevlja transmission line, currently under development.

The EBRD approved a €28 million loan for the project in July 2024, and Montenegro has also applied for an additional €7 million grant through the EU's Western Balkans Investment Framework (WBIF).

According to the EBRD, the modernization will strengthen Montenegro's electricity grid, support regional market integration with Italy through market coupling, and enable private investments in at least 200 MW of new renewable energy capacity. The project is also expected to reduce annual transmission losses by approximately 13 GWh.

Long-term benefits include improved energy stability, increased grid security, and potential interconnection with Sarajevo, Bosnia and Herzegovina--a plan currently undergoing feasibility studies with EBRD support.

The deadline for transformer supply tenders is set for September 4, 2025.