Montenegro’s electricity distribution operator CEDIS has completed construction of a new 35/10 kV substation in Bigova, with commissioning expected in September, adding capacity to the electricity network serving Donji Grbalj and the wider Kotor development area. The project represents an investment of nearly €2.9 million. About €1.9 million was spent on the substation and related equipment, while approximately €70,000 went toward acquiring land from the Municipality of Kotor. A further €900,000 was invested in cable infrastructure connecting the facility to the existing distribution network.
The first stage of the project comprises two 4 MVA transformers, providing an initial installed transformation capacity of 8 MVA. Once energised, the Bigova facility will be integrated with the recently commissioned Grbalj 2 substation, strengthening the local 35 kV distribution network and providing additional capacity for an area experiencing rising electricity demand from tourism, residential construction and commercial activity.
New infrastructure for a rapidly developing coastal area
The network serving Donji Grbalj was originally designed for smaller settlements, dispersed residential consumption and limited commercial demand. Development patterns have since changed as tourism, second-home construction, hospitality projects and related commercial activities have expanded. Tourism facilities place different demands on the electricity system than traditional residential users. Hotels, resorts and apartment complexes require electricity for cooling, water pumps, kitchens, swimming pools, elevators, lighting, EV charging, telecommunications and building-management systems.
Many of these loads increase sharply during the summer, when Montenegro’s coastal electricity network is already under its greatest pressure. For developers, insufficient grid capacity can affect connection approvals, reinforcement costs and the timing of energisation. For CEDIS, expanding capacity is necessary to accommodate new demand while maintaining supply conditions for existing customers.
Bigova and Grbalj 2 strengthen local supply
The significance of the Bigova substation is also linked to its connection with Grbalj 2. The two facilities provide greater flexibility within the local 35 kV network, allowing operators to redistribute loads during maintenance or in the event of faults and reducing dependence on individual supply routes.
The need for reliable electricity becomes particularly important as the local economy shifts toward higher-value hospitality and real estate. Hotels operating at full summer occupancy depend on continuous electricity supply for air-conditioning, food storage, elevators, payment systems, water systems and other guest services. The addition of transformation capacity in Bigova is therefore intended to support both new connections and network resilience during periods of peak demand.
Tri Krsta adds capacity on Luštica
The investment forms part of a wider expansion of Montenegro’s coastal distribution infrastructure. CEDIS has also completed the Tri Krsta 35/10 kV substation on Luštica, a project previously estimated at approximately €1.5 million. The facility serves an area undergoing significant luxury tourism and residential development.
Luštica has experienced a substantial shift from relatively limited development toward larger resort and residential projects. These developments require reliable medium-voltage connections and sufficient network redundancy to support their operations and further construction phases. Together, Bigova, Grbalj 2 and Tri Krsta represent a broader strengthening of electricity distribution infrastructure around key development areas on the coast.
Changing electricity demand adds pressure to the network
Electricity demand is changing not only in volume but also in composition. Greater use of air conditioning, increasing EV charging requirements, heat pumps, hotel wellness facilities and pools, as well as growing dependence on telecommunications and digital systems, are creating more sophisticated electricity loads.
The expansion of rooftop solar is also introducing two-way electricity flows into distribution networks, while battery storage could add further operational requirements. As a result, annual consumption alone provides a less complete picture of network requirements. Peak demand, congestion, voltage quality and local flexibility are becoming increasingly important, particularly in tourist areas where summer evening consumption can be substantially higher than winter demand. The Bigova substation provides additional local transformation capacity and can reduce the electrical distance between supply infrastructure and customers, supporting voltage conditions for existing and future users.
Grid capacity becomes part of project planning
Electricity connections are increasingly relevant to the financial and development planning of large tourism and mixed-use projects. Developers must consider connection conditions alongside land ownership, planning parameters, construction costs, financing and sales assumptions. Where additional network reinforcement is required before connection, projects can face higher capital costs and delays affecting construction financing, presales and opening schedules.
The completion of the Bigova substation provides additional connection capacity within its supply area and reduces such infrastructure constraints for projects requiring access to the local network. The availability of reliable electricity is also relevant to the value of residential and tourism properties. Premium apartments, villas and hospitality facilities increasingly require utility reliability consistent with their positioning, particularly in areas such as Kotor, Tivat and Luštica.
Summer demand will test the expanded capacity
The strongest test of the reinforced coastal network will come during July and August, when tourism occupancy, cooling requirements and commercial activity reach their highest levels. Properties that have limited winter occupancy can become fully occupied within weeks during the peak season. Hotels, restaurants, shops and entertainment venues simultaneously increase their electricity consumption.
This concentrated seasonal demand can place greater stress on local networks than annual consumption figures indicate. Additional transformation capacity in Bigova should provide greater scope for new connections while strengthening supply during these peak periods. It can also help address voltage drops that may occur on long distribution feeders as demand increases.
Further investment required across the distribution system
The Bigova project does not eliminate the broader investment requirements facing CEDIS.
Coastal development continues while Podgorica is expanding, solar installations are increasing, EV charging requirements are growing and households are increasingly electrifying heating and cooling.
At the same time, commercial electricity consumption is becoming more complex, requiring further improvements in network automation and digitalisation. Traditional investment in transformers and cables will need to be accompanied by technologies such as remote switching, advanced metering, improved load forecasting and distribution-network monitoring. Local battery storage could also become relevant as distribution networks increasingly require flexibility in addition to additional physical capacity.
The infrastructure requirement extends beyond electricity. Growing tourism and property development also place pressure on water supply, wastewater treatment and roads, with infrastructure capacity affecting the ability of coastal areas to accommodate additional construction and tourism activity. The completed €2.9 million Bigova project adds 8 MVA of initial transformation capacity, connects into the strengthened network around Grbalj 2, and expands the electricity infrastructure available to Donji Grbalj and the Kotor development zone.
