CGES contract paves the way for Brezna upgrade as Montenegro targets more renewables and tighter grid links

Montenegro’s power system operator is pushing ahead with grid reinforcement at Brezna substation, betting that upgraded infrastructure will be the difference between paper plans and actual renewable output reaching consumers. CGES says the modernization centers on replacing critical transformer assets, with downstream benefits tied to greater transmission capability and improved efficiency.

The transmission system operator is advancing the modernization of Brezna substation, awarding a €7.9 million contract for transformer equipment supply as part of a broader €36 million infrastructure upgrade. The agreement was signed with a consortium made up of local company XEnergy and Turkish manufacturer Astor Enerji.

Transformers set for higher-voltage operation

As described by the European Bank for Reconstruction and Development (EBRD), the scope includes delivery of two 300 MVA three-winding autotransformers engineered for 400/115/10.5 kV operation. Once installed, this would allow Brezna to move beyond its current 110/35 kV configuration, strengthening the substation’s technical capabilities.

beyond hardware, the contract also covers engineering and design work, manufacturing oversight including factory acceptance testing, and transport of equipment to the site. The package further includes spare parts, installation tools, insulating oil, online monitoring systems, and other supporting services.

CGES expects both equipment delivery and full contract completion by the end of October 2027.

A bottleneck-busting project for renewables

The Brezna upgrade is positioned as strategically important because it is expected to unlock additional transmission capacity for renewable energy. After completion, CGES plans to connect the facility to the national grid via a planned 400 kV Lastva–Pljevlja transmission line that remains under development.

If realized as scheduled, officials expect at least 200 MW of new renewable projects currently in the pipeline to gain access to the system. In parallel with enabling new generation, the investment is projected to improve overall network performance by cutting transmission losses by around 13 GWh per year.

Regional integration remains part of the rationale

The modernization also aligns with longer-term regional connectivity goals. The Brezna works are described as a key step toward a potential future electricity interconnection with Bosnia and Herzegovina—an initiative supported by EBRD that is still in early feasibility stages.

Financing framework combines multilateral debt and EU-linked support

The EBRD approved a €28 million loan for CGES in 2024 to help finance the modernization. Montenegro has additionally applied for an extra €7 million grant from the Western Balkans Investment Framework (WBIF) aimed at supporting implementation of the project.