On 19 July 2024, a Loan Agreement between Crnogorski elektroprenosni sistem AD (CGES) and the European Bank for Reconstruction and Development (EBRD), with the guarantee of the Government of Montenegro, for financing the project of construction of the 400/110 kV SS Brezna, in in the amount of 28 million euros. was concluded in the Ministry of Finance. The Loan Agreement was signed by Ivan Asanović, Executive Director of CGES, and Remon Zakaria, Head of the EBRD Office for Montenegro, while Finance Minister Novica Vuković signed the agreement on behalf of the Government of Montenegro.
This project will enable the integration of 400 MW of renewable energy into the national grid, supporting the decarbonisation of the Montenegrin economy. Transmission losses will be reduced by 13 GWh per year, and reliable electricity supply in Montenegro and the region will be ensured.
The project includes the installation of two transformers and their connection to the national grid via the new overhead line Lastva – Pljevlja, which will increase the capacity of the plant to 400/110 kV.
The European Union (EU) provided technical assistance of 1.05 million euros for the development of a feasibility study and environmental and social impact assessment.
Strengthening the Trans-Balkan Corridor will connect the countries of the region with Italy and the EU, creating equal conditions on the electricity market for renewable energy sources in Montenegro!
The construction of the mentioned substation is planned until the end of 2028, and the value of the mentioned project is estimated at around 36 million euros, of which 28 million euros are provided by the concluded agreement.
After the signing, it was jointly stated that the project to improve the substation Brezna in the northwest of Montenegro represents a key step towards the future of Montenegro based on sustainable development and energy security.
Dragan Perunović, Director of the Development and Investments Sector, Rade Marković, Head of the Legal Department, and Zvjezdan Vujović, Acting Director of the Directorate for Electric Power in the Ministry of Energy and Mining, attended the conclusion of the agreement.