Montenegro has initiated a significant phase in its electricity network modernisation, facilitated by a partnership involving the national distribution system operator CEDIS, France’s development agency AFD, and EDF International Networks. This collaboration was formalized during the EU–Western Balkans Summit in Tivat, attended by French President Emmanuel Macron and Montenegrin Prime Minister Milojko Spajić.
The primary objective of this partnership is to upgrade Montenegro’s electricity distribution network while enhancing the country’s capability to manage an increasing influx of renewable energy sources. EDF International Networks is set to contribute technical expertise in areas such as network planning, digitalisation, investment optimisation, and the integration of renewable energy. Meanwhile, AFD will facilitate future investment programmes through its technical assistance funding.
A notable aspect of this initiative is a €290,000 technical assistance grant from AFD’s FEXTE facility. This funding will be allocated to evaluate the current state of Montenegro’s distribution infrastructure, prioritize digital transformation efforts, and develop long-term investment strategies that can attract future financing.
The implications of this modernisation extend beyond infrastructure improvements. Montenegro is witnessing a surge in renewable energy projects, particularly in solar and wind sectors, which is placing increasing demands on the existing grid. The readiness of the grid has become a critical factor for investors, influencing project bankability, connection timelines, and financing conditions. Thus, enhancing the network is essential for facilitating renewable energy deployment and supporting broader economic growth.
Additionally, this partnership may open new avenues for financing. CEDIS has indicated that AFD is exploring support for the reconstruction of six 35 kV substations and the modernisation of several 10/0.4 kV substations. These investments aim to bolster network reliability and improve the integration of distributed renewable generation.
This agreement represents part of a larger French commitment to assist Montenegro’s energy transition. Previous collaborations between AFD, transmission system operator CGES, and French grid specialist RTE International included a €950,000 technical grant focused on upgrading transmission infrastructure, digital grid management, and renewable energy integration. Key projects from this initiative include enhancements to the Perućica and Pljevlja substations, crucial for maintaining system stability amid new renewable generation.
Montenegro’s strategy for energy transition increasingly relies on both transmission and distribution operators’ ability to accommodate new renewable capacity. Despite possessing significant hydro resources and attracting international interest in solar, wind, and battery storage projects, network constraints remain a major challenge for developers. Therefore, grid modernisation is central to national energy policy, EU integration efforts, and future investment planning.
The latest collaboration with EDF and AFD positions Montenegro alongside other regional energy systems that are adopting digital grid technologies and smarter network management practices. For stakeholders including renewable energy developers, industrial consumers, and infrastructure investors, this initiative indicates progress toward a more advanced electricity system capable of supporting increased volumes of renewable generation in alignment with evolving European energy market standards.
