Short description of the overall project

Support DSO to complete the modernisation of the distribution network with the aim to further reduce the distribution network losses, improve collections and also to allow DSO to provide more reliable and stable power to its customers. The installation of the additional 60,000 meters places Montenegro in a leadership role in Europe towards meeting the EU's Electricity Directive which sets the target for 80% of consumers in EU member states to install smart metering systems by 2020.

Short description of activities financed by the donation

Project envisages the
(i) reconstruction and modernization of low-voltage infrastructure and substations,
(ii) modernization of software, and
(iii) installation of 60,000 smart electricity meters in Montenegro.

The EBRD in consultation with the Energy Community Secretariat prepared a Technical Cooperation support to the Montenegrin Energy Regulatory Agency (ERA) which focuses on building the capacity of the Regulator on following fronts:

(i) assisting the Regulator during the transition period towards implementation of the market liberalisation process,
(ii) providing training on the application of competition rules,
(iii) providing practical support to enhance the Regulator's analytical and monitoring ability, with a particular emphasis on economic and financial analysis, and
(iv) supporting the Regulator to improve regulation of the distribution network by reviewing the price control process, network operation, and/or by preparing the transition to incentive regulation.