CGES nears completion of €1m upgrade to Montenegro’s Budva–Tivat coastal transmission lines

Montenegro’s grid operator is tightening the power backbone that underpins the Adriatic coast just as summer demand typically surges. CGES says it is nearing completion of reconstruction works on the Budva–Lastva and Lastva–Tivat transmission lines, a targeted modernisation package worth around €1 million and covering 17 kilometres of 110 kV infrastructure.

Upgrading equipment to boost capacity and reliability

The project involves replacing conductors, insulators, suspension equipment and connection hardware. CGES’ stated aim is to increase transfer capacity and strengthen supply reliability across the wider coastal belt—an objective that matters in a region where electricity demand rises sharply during the tourism season.

Why the coastal network is strategically sensitive

The upgraded network section serves Budva, Tivat, Kotor and Herceg Novi. For Montenegro, this is more than routine maintenance: it reinforces one of the country’s most economically sensitive load zones where hotels, marinas, airports, residential development and seasonal services rely on stable power flows.

The reconstruction also enhances the value of the 400/110/35 kV Lastva substation and supports CGES’ operational role in interconnection with Italy. CGES notes it is using modern high-temperature low-sag conductors, which can enable higher transfer capacity without requiring a completely new corridor—an approach particularly relevant in coastal areas where land constraints, environmental permitting and safety-clearance requirements can make conventional grid expansion harder.

Implications for investors as demand composition shifts

From an investment perspective, CGES’ work signals that Montenegro’s coastal economy is becoming more electricity-intensive while the grid must simultaneously accommodate tourism growth, real estate development, electrification, renewable integration and cross-border power flows. The operator argues that smaller-scale grid interventions like this €1 million package can deliver broader system value by reducing outage risk, improving voltage security and supporting downstream coastal projects that depend on reliable network capacity.

Part of a wider transmission modernisation cycle

The upgrade aligns with a broader CGES investment cycle. Earlier in 2026, CGES and the EBRD announced a €15 million financing package to modernise a regional 220 kV corridor linking Bosnia and Herzegovina, Montenegro and Albania. That programme targets an increase in transfer capacity from around 300 MW to about 600 MW.

Taken together, these developments point to a shift in how Montenegro’s transmission grid is being positioned: from simply maintaining infrastructure toward acting as a core economic asset. In practice, the coastal network is increasingly framed not only as a tool for meeting summer peak demand but as a prerequisite for tourism expansion, real estate financing, renewable-energy integration—and for strengthening Montenegro’s role as a small yet strategically located electricity transit market between the Adriatic region, the Balkans and the EU power system.