EBRD SUPPORTS MONTENEGRO’S ENERGY SECTOR BY INVESTING IN GRID DIGITALISATION
– EBRD has provided a €35 million loan to the Montenegrin Electricity Distribution System
– The funds will be used to introduce a SCADA/ADMS system
– Among other benefits, the new systems will reduce technical losses by 10 per cent compared with the current level of losses in the distribution system
The European Bank for Reconstruction and Development (EBRD), in support of the development of Montenegro’s energy sector, has approved a €35 million loan to the Montenegrin Electricity Distribution System to establish a new SCADA/ADMS system (Advanced Distribution Management System) and procure new multifunctional meters. The project aims to make use of a €5 million grant from the European Union’s Western Balkans Investment Framework.
The SCADA system will enable real-time monitoring and control of the medium-voltage distribution network, while ADMS is an advanced platform that optimises the management and operation of the electricity distribution system. “Smart” meters will enable customers to monitor and manage their electricity consumption more efficiently, reducing losses and improving reliability.
Among other benefits, this project will reduce technical losses by 10 per cent compared with the current level of losses in the distribution system, as well as reduce power supply interruptions by around six times. It will also enable the integration of new renewable energy sources into the network and increase the level of cybersecurity. Replacing the existing distribution management system will ultimately improve quality of life for the population and optimise CEDIS’s operations. This loan will further support the introduction of “smart” meters in line with European and Energy Community standards.
The loan agreement was signed by Remon Zakaria, EBRD Head of Montenegro, Vladimir Ivanovic, Executive Director of the Montenegrin Electricity Distribution System – CEDIS, and Ivan Bulatovic, Executive Director of Elektroprivreda Crne Gore.
Remon Zakaria, EBRD Head of Montenegro, said that the project marks a significant step forward in the digitalisation of Montenegro’s electricity distribution system, helping to increase its reliability and efficiency and paving the way for the integration of renewable energy sources. “The people of Montenegro will benefit from a more reliable electricity supply, while CEDIS will benefit from a significant reduction in technical losses and the ability to quickly detect and resolve technical faults,” Zakaria noted.
Vladimir Ivanović, Executive Director of the Montenegrin Electricity Distribution System – CEDIS, said that this significant investment demonstrates our commitment to upgrading Montenegro’s energy infrastructure and aligning it with modern technological and environmental standards. “The SCADA/ADMS system will improve the way we manage the distribution network, enabling us to enhance the reliability and efficiency of the electricity supply while reducing energy losses and improving the quality of services for all our customers. In addition, ‘smart’ meters will offer customers numerous benefits, such as detailed monitoring and optimisation of consumption, enabling them to save electricity and contributing to energy efficiency.
This project not only strengthens CEDIS’s operational capacity but also supports Montenegro’s broader energy transition goals by enabling the integration of renewable energy sources and alignment with EU green transition standards. We greatly value our strong and productive cooperation with the EBRD, whose support has been instrumental in achieving this strategic milestone. Together, we are setting benchmarks for modern energy solutions and laying the foundation for a more sustainable and resilient energy future.”
CEDIS’s core activity is the distribution of electricity, and it manages the distribution network up to a voltage level of 35 kV. It is wholly owned by Elektroprivreda Crne Gore AD Nikšić. Since 2006, the EBRD has financed the implementation of 94 projects in Montenegro, with total investments of €906 million. The EBRD’s priorities for Montenegro are competitiveness, the green transition and further integration into regional and global markets.
