As part of the “Decarbonisation of Montenegro’s Energy Sector” project, the Montenegrin Electricity Distribution System (CEDIS) is carrying out activities aimed at implementing Component 2, which concerns improving the operational efficiency of the electricity distribution network.
The €20 million Component 2 project is being implemented through two sub-components: the reconstruction of seven 35 kV switchgear installations at 110/35 kV substations, and the replacement of 36 old 35/10 kV transformers with new transformers manufactured in accordance with ECO Design standards.
Regarding the reconstruction of seven 35 kV switchgear installations at 110/35 kV substations owned by CGES, we note that CEDIS purchased all seven switchgear installations from CGES in 2023. The reconstruction involves the complete replacement of the switchgear installations, auxiliary power supplies and backup power systems, together with the installation of a local SCADA system that enables remote control and real-time monitoring of the network. By mid-April this year, CEDIS and CGES had agreed on the scope of construction works at all seven substations, and the Ministry of Spatial Planning, Urbanism and State Property had issued urban planning and technical requirements for all these facilities. In order to meet the requirements of the international call, CEDIS prepared draft terms of reference, and a tender for a technical consultant was launched at the end of March.
For the replacement of 36 old and worn-out transformers, CEDIS prepared technical specifications, and a procurement tender was launched on 8 April. The new transformers must be manufactured in accordance with enhanced ECO Design standards in order to reduce technical losses and environmental impact through the use of environmentally friendly and less hazardous materials. Following procurement, the new transformers will be installed at 27 substations across Montenegro.
All of the above activities carried out by CEDIS form part of one of the three components of the “Decarbonisation of Montenegro’s Energy Sector” project, which is being implemented from 14 February 2025 to 30 April 2030, based on a loan received by the Government of Montenegro from the International Bank for Reconstruction and Development (IBRD).
In addition to improving the operational efficiency of the electricity distribution network, which CEDIS is working on, the project aims to improve the energy efficiency of public buildings and provide technical assistance and support for project implementation. These activities are carried out under the project’s other two components. The implementation of these activities stems from international commitments undertaken, as well as efforts to achieve the targets for 2030 in terms of reducing CO₂ emissions, increasing the use of renewable energy sources and improving energy efficiency.
The Agreement on the Use of Funds between the Ministry of Finance (MF) and CEDIS was signed in October 2025, while the Loan Agreement between the World Bank and the MF was signed in December 2024.
