Alcazar Energy fund acquires rights to wind power project Bijela in Montenegro

Luxembourg-based Alcazar Energy took over the Bijela wind farm project in Šavnik in Montenegro, of 118 MW. It kept the two original developers on as partners for the investment, which it estimated at USD 200 million.

Alcazar Energy wants to establish a renewable energy platform in the Western Balkans with total project investment of USD 600 million. The sustainable infrastructure fund made the announcement as it signed the agreement to acquire the rights to wind farm project Bijela in Šavnik in Montenegro.

It is one of two potential wind power investments for which the government recently issued public calls to investors to bid to take state land under lease. The facility is envisaged with a capacity of 118 MW and Alcazar Energy valued it at USD 200 million.

Bijela is set to become Montenegro’s biggest wind park

Bijela would be the biggest wind park in Montenegro, which currently hosts only two such power plants – Krnovo and Možura. The location of the Gvozd project, for which a financing deal was recently signed, is near Bijela and Krnovo, which is also in Šavnik.

The original developers – Simes inženjering and Sistem MNE –  will stay on to support the company based in Luxembourg in the development of the project, according to law firm Karanović and Partners, which advised the two firms. KPMG was the financial advisor.

Construction scheduled for 2025

Financial close is expected in the first quarter of 2025, when construction is planned to begin, according to Alcazar Energy. It said the endeavor would create over 800 construction jobs. The company added that it is in discussions with several European offtakers interested in purchasing the electricity.

Outgoing Prime Minister of Montenegro Dritan Abazović (pictured) attended the signing ceremony. He highlighted the significance of the investment given that the location is in “the neglected northern part” of the country. Project firm Vjetro park Bijela earlier said annual output would be 333 GWh.

Leasing land is a new model for the government. It approved dozens of urban planning and technical requirement documents for solar and wind power projects in less than a year.

Of note, a firm called Sunrise Europe is planning to build a 220 MW solar park in the territory of the Šavnik municipality.