CGES Secures €15 Million Investment to Upgrade Tri-Nation Power Infrastructure in the Western Balkans

Crnogorski Elektroprenosni Sistem (CGES), Montenegro’s national transmission system operator, has successfully secured a €15 million loan to finance the modernization of the 220-kilovolt (kV) power line connecting Montenegro, Bosnia and Herzegovina, and Albania.

This strategic initiative is designed to enhance the efficiency and reliability of Montenegro’s domestic electricity transmission network while simultaneously fortifying cross-border energy connectivity throughout the Western Balkans. According to CGES, the project represents a critical step toward the broader regional integration of power systems.

The financial agreement was formally signed by CGES Chief Executive Officer Ivan Asanović, European Bank for Reconstruction and Development (EBRD) Vice President Mark Bowman, and Montenegrin Minister of Finance Novica Vuković. The Ministry of Finance backed the initiative by issuing a state guarantee, underscoring the government’s steadfast commitment to supporting strategic investments that bolster both national infrastructure and regional connectivity.

Detailing the technical improvements, CEO Ivan Asanović noted that the modernization project will effectively double the transmission line’s current capacity from 300 megawatts (MW) to approximately 600 MW. He characterized the upgrade as a foundational investment in a secure, stable, and integrated energy future for the region, resulting in a more resilient grid capable of meeting increasing systemic demands and facilitating deeper regional cooperation.

EBRD Vice President Mark Bowman echoed these sentiments, emphasizing that reinforcing transmission networks is essential for securing long-term energy security and regional integration in the Western Balkans. Bowman noted that the project will overhaul vital infrastructure in Montenegro, aligning with the EBRD’s mandate to foster sustainable and resilient infrastructural development.

Looking forward, this project falls under a broader capital expenditure strategy for CGES, which plans to invest a total of €200 million into transmission infrastructure over the next five years.

December 16, 2025

by AEA in News

Firms from Croatia, BiH, Serbia to build power line in North Macedonia

Croatia-based Dalekovod, Elnos from Bosnia and Herzegovina, and Serbian Kodar Energomontaža will jointly build electricity transmission infrastructure in North Macedonia.

Dalekovod said it signed a EUR 19.7 million contract with MEPSO, the transmission system operator of North Macedonia, as the lead member of a consortium that includes Elnos BL and Kodar Energomontaža.

The contracted works include the delivery and construction of a 400 kV power line from the 400/110 kV Bitola 2 substation, via the 400/110 kV Ohrid substation, to the North Macedonia – Albania border.

The project ensures long-term stability of the electricity system in the wider region

The new Ohrid substation is currently under construction, with Končar, another Croatian company, as contractor. Končar is the majority shareholder of Dalekovod since 2022.

The Croatian firm pointed out that the new power line in North Macedonia represents a significant infrastructure project ensuring long-term stability of the electricity system in the wider region.

Dalekovod: Strengthening position in the regional and European market

Construction is scheduled for completion by mid-2028.

Of note, all three companies are active on the territory of former Yugoslavia, as well as across Europe and even worldwide. The owners of Elnos and Kodar are individuals from Bosnia and Herzegovina and Serbia, respectively, while the largest shareholders of Dalekovod are the Government of Croatia and three foreign banks operating in the country.

Operations in the region, Europe, Africa

Dalekovod has subsidiaries in six countries, including Namibia. In October, the company concluded a EUR 100 million deal for the construction of a 400 kV power line in Sweden.

Elnos BL is part of Elnos Group based in Banja Luka, Bosnia and Herzegovina. The company, which recently marked a remarkable dual jubilee – 80 years of tradition and 30 years of modern business development, operates in 18 countries.

A week ago, it signed a contract with Power China Construction Group to build a connection to the transmission grid for the 300 MW Vetrozelena wind farm in Serbia.

Kodar Energomontaža, headquartered in Serbia’s capital Belgrade, has carried out numerous projects across Europe – from southeastern Balkans to Scandinavia, as well as in West Africa.

In March, the company inked a deal with Serbia’s transmission system operator Elektromreža Srbije (EMS) for the construction of a two-system 400 kV transmission line, part of the Trans-Balkan Electricity Corridor.

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July 26, 2016

by AEA in News

New Power Line to Link Albania to Macedonia

A German bank loan of 50 million euros opens the way for the construction of 126km high voltage 400kV line from Elbasan in Albania to Bitola in Macedonia, designed to integrate the energy trade in the region.

Albania’s government on Tuesday will sign an agreement for a loan of 50 million euros with the German state-owned development bank KfW, that will open the way for the construction of a high-voltage 400kV interconnection line with Macedonia.

The project that in Albania will start in Elbasan and will end in Bitola in Macedonia has been mulled for a long time between the two governments.

The total cost is estimated at 70 million euros. Besides the loan from KfW, funds will come from the Albanian Transmission System Operator, OST, and from the EU.

Once financial cover for the project is arranged, work in the field is expected to start at the beginning of 2017 and finish in 2018.

The new energy line with Macedonia comes after Kosovo and Albanbia finished another high-voltage 400kV power line that will enable higher levels of energy exchange between mostly lignite-powered generation capacities in Kosovo and the hydro-generation capacities of Albania.

Pajtim Bello, chairman of the Supervisory Board of OST, told BIRN that the construction of the line with Macedonia will complete Albania’s plan to connect itself with its neighbours by land.

“After the high inter-connection voltage lines that we built with Montenegro, Greece, and Kosovo, Macedonia is the last one. After that, Albania will finally able to transmit and receive energy from all over the region,” he stated.

Bello said the the project was important in terms of integrating regional systems of electricity, increasing energy security and enabling Albania and Macedonia to develop an energy market.

The project also creates new energy opportunities for the south of Albania. “We aim to stimulate the Fieri region – a big local energy consuming area – to returning to an energy production region. The interconnection line will enable access for energy production through gas, wind, and sun,” he said.

In December 2015, when the project was first floated at a roundtable of officials of the two countries, the Albanian Energy Minister, Damian Gjiknuri, said the high-voltage line with Macedonia would not only connect up the regional energy market but create opportunities for energy transmission to Italy as well.

“The line will open up an opportunity for a connection by an underwater cable with Italy and the European Union,” he stated.