The European Bank for Reconstruction and Development (EBRD) has sanctioned a loan of EUR 35 million to the Montenegrin Electricity Distribution System (CEDIS) aimed at implementing a new Advanced Distribution Network Management System (SCADA/ADMS) and acquiring new multifunctional meters.

According to CEDIS, the loan is intended to bolster the development of Montenegro’s energy sector.

“The project is set to benefit from a grant amounting to five million EUR from the European Union Investment Framework for the Western Balkans,” the announcement indicated.

The SCADA system will facilitate real-time monitoring and command over the medium-voltage distribution network, while the ADMS is a sophisticated platform designed to enhance the management and functionality of the electricity distribution system.

“Smart meters will allow consumers to monitor and manage their electricity use more effectively, leading to decreased losses and heightened reliability. This initiative is expected to reduce technical losses by ten percent relative to current figures, minimize power supply interruptions by approximately six times, enable the integration of new renewable energy sources into the grid, and enhance cybersecurity levels,” the statement elaborated.

Additionally, the upgrade of the existing distribution management system is projected to significantly elevate the quality of life for residents and optimize the operations of CEDIS.

This loan will also support the rollout of “smart” meters in accordance with European and European Energy Community standards.

The loan agreement was executed by Remon Zakaria, Head of the EBRD for Montenegro, Vladimir Ivanović, Executive Director of CEDIS, and Ivan Bulatović, Executive Director of the Electric Power Company (EPCG).

Zakaria stated that the project is a pivotal advancement towards digitalizing Montenegro’s electricity distribution system, enhancing reliability and efficiency, while paving the way for the incorporation of renewable energy sources.

“Montenegro’s citizens will benefit from a more dependable electricity supply, while CEDIS will experience a marked reduction in technical losses and improved capability to swiftly identify and resolve technical failures,” Zakaria added.

Ivanović remarked that this substantial investment signifies their dedication to upgrading Montenegro’s energy infrastructure and aligning it with modern technological and environmental benchmarks.

“The SCADA/ADMS system will enhance our management of the distribution network, thereby boosting reliability and efficiency in electricity delivery, reducing energy wastage, and improving service quality for all our clients,” Ivanović stated.

Moreover, with “smart” meters, consumers will enjoy various advantages such as detailed consumption monitoring and optimization, leading to electricity savings and enhanced energy efficiency.

“This initiative not only reinforces CEDIS’s operational capacity but also supports Montenegro’s broader energy transition objectives, fostering the integration of renewable energy and alignment with EU green transition standards. We highly value the robust and effective collaboration with the EBRD, whose support was vital in reaching this strategic milestone. Together, we are establishing a benchmark for modern energy solutions and laying the groundwork for a more sustainable and resilient energy future,” Ivanović expressed.

CEDIS primarily manages the distribution of electricity, overseeing the distribution network up to a voltage level of 35 kV and is fully owned by EPCG.

Since 2006, the EBRD has invested in 94 projects in Montenegro, totaling EUR 906 million. The EBRD’s priorities in Montenegro include enhancing competitiveness, facilitating green transition, and promoting further integration into regional and global markets.

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