Photo: CGES
Montenegro’s transmission system operator, Crnogorski Elektroprenosni Sistem (CGES), is seeking a EUR 25 million loan to modernize two substations, Perućica and Pljevlja 2.
The Government of Montenegro has adopted the information on negotiations on a guarantee for a loan agreement between CGES and Agence Française de Développement (AFD).
CGES has already been negotiating the terms of the loan agreement with the AFD. One precondition for signing the agreement is a government guarantee, which is already planned in the 2026 budget.
The CGES Board of Directors has adopted the updated transmission system development plan for 2023–2032, along with the investment plan for 2026. The plans include the reconstruction and upgrade of the 220/110 kV Perućica substation and the replacement of the transformers at the 400/220 kV Pljevlja 2 substation.
The Perućica hydropower plant was built in 1960
The Perućica hydropower plant, built in 1960, is one of the country’s most significant power generation facilities. Due to the long period of operation, and despite regular maintenance, the substation adjacent to the plant requires reconstruction and expansion.
The project would ensure a safer, more reliable, and higher-quality power supply, reducing grid losses. It would also create conditions for connecting renewable energy sources in the vicinity of the Perućica substation, according to the information adopted by the government.
The project also includes replacing two 400/220/33 kV transformers at the 400/220 kV Pljevlja 2 substation.
The transformers are over 40 years old
The transformers are over 40 years old. Their importance is critical to system operations, especially given the various interconnection projects planned for the future.
The deadline for the project’s implementation is 2030. The budget has been estimated at EUR 38.8 million by the French TSO, Réseau de Transport d’Électricité (RTE), which acted as a consultant.
Of the total amount, EUR 25.2 million is allocated for Perućica and EUR 13.6 million for Pljevlja. Apart from the loan, the plan is to secure a grant and use CGES’s own funds.
The loan agreement has a 10-year repayment term, including a five-year grace period, according to the Government of Montenegro.
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