EBRD Loans €35 Million to CEDIS for Montenegro Energy Upgrade.

The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €35 million to Crnogorski Elektrodistributivni Sistem (CEDIS), marking a significant step forward in Montenegro's energy sector. The funds will support the establishment of a new supervisory control and data acquisition (SCADA) system, an advanced distribution management system (ADMS), and the acquisition of new smart meters. This initiative aims to improve the country's power distribution network, enhance grid management, and contribute to Montenegro's broader energy goals.

Transforming Montenegro’s Energy Landscape

CEDIS, the state-owned company responsible for managing power distribution networks up to 35 kV in Montenegro, will use the EBRD loan to modernise its infrastructure. The project also aims to secure a grant from the European Union’s Western Balkans Investment Framework, adding to the project’s financial backing.

The implementation of the SCADA system will allow real-time monitoring and control of medium-voltage grid networks, while the ADMS will optimise the management and operation of electricity distribution. The smart meters will enable both utility companies and consumers to monitor and manage electricity consumption more effectively, leading to better energy efficiency and fewer losses.

Key Benefits of the Project

The EBRD-backed project is expected to result in several key advantages for Montenegro’s energy sector, including:

• A 10% reduction in technical losses in the electricity network
• A decrease in grid outages, with a reduction to about one-sixth of the current frequency
• Better integration of renewable energy sources into the grid
• Enhanced cybersecurity measures across the distribution system

Furthermore, the overhaul of CEDIS’s distribution management system will improve the overall quality of life for Montenegro’s citizens while boosting the operational efficiency of the energy provider. The project aligns with EU and Energy Community standards, promoting the deployment of smart meters across the country.

Key Quotes from EBRD and CEDIS Leaders

Remon Zakaria, Head of Montenegro at the EBRD, stated:
“This project represents a transformative step towards the digitalisation of the electricity distribution system in Montenegro, helping to enhance its reliability and efficiency and paving the way for the integration of renewable energy. Montenegrin citizens will experience a more reliable electricity supply, while CEDIS will achieve substantial reductions in technical losses and gain the advanced capabilities required to swiftly detect and address technical faults.”

Vladimir Ivanović, CEO of CEDIS, added:
“This significant investment underscores our dedication to advancing Montenegro’s energy infrastructure and aligning it with contemporary technological and environmental standards. The SCADA and ADMS systems will revolutionise the way we manage and operate the distribution network, enabling us to enhance the reliability and efficiency of electricity supply while reducing energy losses and improving service quality for our citizens. In addition, the integration of smart meters will empower consumers to better understand and optimise their energy usage, contributing to greater energy efficiency across the network. This project not only strengthens CEDIS’s operational capabilities, but also supports Montenegro’s broader energy transition objectives by enabling the integration of renewable energy sources and aligning with EU green energy standards. We greatly value our strong and productive collaboration with the EBRD, whose support has been instrumental in helping us achieve these strategic milestones. Together, we are setting a benchmark for modern energy solutions and laying the foundations for a more sustainable and resilient energy future.”

EBRD’s Ongoing Commitment to Montenegro

Since Montenegro became a member of the EBRD in 2006, the bank has invested €908 million through 95 projects. The EBRD’s focus in Montenegro continues to revolve around competitiveness, the green transition, and further integration into regional and global markets. This latest collaboration with CEDIS is a testament to the EBRD’s commitment to helping the country modernise its energy infrastructure and move towards a sustainable, resilient energy future.

Crnogorski Elektrodistributivni Sistem (CEDIS) is the primary electricity distribution company in Montenegro, responsible for managing and operating the country's power distribution network up to 35 kV. CEDIS is wholly owned by Elektroprivreda Crne Gore (EPCG), Montenegro's national electric utility. The company plays a key role in ensuring the reliable and efficient delivery of electricity to consumers across Montenegro.

CEDIS's mission is to modernise and optimise Montenegro’s electricity distribution infrastructure, ensuring that it meets the evolving energy needs of the country. This includes adopting advanced technologies, such as smart meters, SCADA systems, and distribution management systems (ADMS), to improve grid management, reduce energy losses, and enhance overall service reliability. The company is also focused on integrating renewable energy sources into the grid as part of Montenegro's energy transition towards greener, more sustainable solutions.

CEDIS is committed to meeting the highest standards of service, while aligning its operations with both EU regulations and Energy Community standards. The company's ongoing initiatives aim to improve the quality of life for Montenegrin citizens by enhancing the country's energy infrastructure and ensuring a reliable electricity supply.

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