Montenegro’s electricity transmission system operator, CGES, is in the final stages of reconstructing the Budva–Lastva and Lastva–Tivat transmission lines. This initiative represents a significant investment of approximately €1 million and involves upgrading 17 kilometers of 110 kV infrastructure. The project includes the replacement of conductors, insulators, suspension equipment, and connection hardware, aimed at increasing transfer capacity and enhancing supply reliability across the coastal region.
This undertaking is crucial as it directly impacts areas such as Budva, Tivat, Kotor, and Herceg Novi, where electricity demand surges during the summer tourism season. The reconstruction is not merely a maintenance effort; it serves to strengthen one of Montenegro’s most economically vital load zones that supports hotels, marinas, airports, residential developments, and seasonal services reliant on consistent power supply.
The upgrades also enhance the functionality of the 400/110/35 kV Lastva substation and bolster Montenegro’s electrical interconnection with Italy. By utilizing modern high-temperature low-sag conductors, CGES can increase transfer capacity without requiring a completely new corridor. This approach is particularly advantageous in the coastal region, where land constraints and environmental regulations complicate traditional grid expansion.
For investors, this development signals that Montenegro’s coastal economy is becoming increasingly electricity-intensive. The grid must now accommodate growing demands from tourism, real estate development, electrification efforts, renewable energy integration, and cross-border power flows. Small-scale investments like this €1 million project can have broader implications for the system by reducing outage risks, enhancing voltage security, and improving the viability of coastal projects that depend on reliable network capacity.
This project aligns with a larger investment strategy by CGES. Earlier in 2026, CGES collaborated with the EBRD to announce a €15 million financing package aimed at modernizing a regional 220 kV corridor that connects Bosnia and Herzegovina, Montenegro, and Albania. This upgrade is expected to double the transfer capacity from around 300 MW to approximately 600 MW.
Collectively, these enhancements indicate a shift in Montenegro’s transmission grid from a passive infrastructure to an essential economic asset. The coastal network is evolving beyond merely providing electricity during peak summer months; it is becoming vital for tourism growth, real estate financing, renewable energy integration, and establishing Montenegro as a strategically important electricity transit market between the Adriatic Sea, the Balkans, and the European Union power system.
