Photo: Ministry of Energy and Mining
The most attractive project for cooperation between Montenegro and EDF is for the Kruševo pumped storage hydropower plant, according to the Ministry of Energy and Mining. Representatives of the ministry and state-owned power utility Elektroprivreda Crne Gore held talks with a delegation from EDF.
Montenegro and France have signed an intergovernmental cooperation agreement. Elektroprivreda Crne Gore (EPCG) signed a memorandum of understanding with EDF in 2024. At the time, the Kruševo and Ćehotina were identified as potential hydropower projects.
The Ministry of Energy and Mining now said that following a meeting between minister Admir Šahmanović and representatives of EDF, it was concluded that the intergovernmental agreement between the two countries represents a strong foundation for further deepening cooperation in the energy sector.
The right time to define next steps and concrete partnership models
The officials asserted there is significant potential for enhancing cooperation between the two national energy companies, and that now is the right time to define the next steps and concrete partnership models, the ministry added.
The French side expressed strong support for Montenegro’s efforts to accelerate the energy transition, while the development and construction of the Kruševo pumped storage hydropower plant was identified as the most attractive project for cooperation, according to the ministry.
The focus in the upcoming period will be on preparing the key project documentation, including a feasibility study.
Compliance with EU standards opens the door for more intensive cooperation with international financial institutions
Minister Šahmanović noted that geological works have already begun at the potential site. It is important to timely define cooperation and financing models, he pointed out.
During the meeting it was stressed that Montenegro’s regulatory framework is fully aligned with the European Union’s acquis in the energy sector, and that the process of electricity market coupling with Italy is underway.
Alignment with European standards opens the door for more intensive cooperation with international financial institutions, especially in the later phases of the project’s implementation, including its construction, the ministry said.
Šahmanović: We see the Kruševo pumped storage hydropower project as a key development opportunity
“The intergovernmental agreement with France is an excellent starting point, but now is the right time to take the cooperation to a higher, operational level. We see the Kruševo pumped storage hydropower project as a key development opportunity and we are ready, together with our partners, to finalize the next steps – from conducting a feasibility study to defining a sustainable financing model,” Šahmanović underscored.
Representatives of EPCG – Milutin Đukanović, President of the Board of Directors, Zdravko Dragaš, CEO, Ivan Mrvaljević, Executive Officer of the Directorate for Development and Engineering, held talks with EDF representatives – Laurent Paganon, Director for Europe, Central Asia, and Middle East, and Yann Guinard, Vice President of the International Sector.
The meeting was dedicated to enhancing cooperation and defining concrete steps for the implementation of joint projects, with a special focus on the Kruševo hydropower project, EPCG said.
Geological works officially began in October 2025
In December 2024, EPCG signed a contract with the Jaroslav Černi Water Institute for the design and detailed geological works for the Kruševo hydropower plant.
The work officially began in October 2025. At the time, EPCG said that it would, in the coming period, work with international partners to confirm the optimal technical solution, explore the possibility of building a pumped storage hydropower plant, and prepare the technical documentation needed to implement the Kruševo HPP project.
Earlier, EPCG said that the planned installed capacity of the Kruševo HPP is 82 MW, for an annual output of around 170 GWh, and that the investment was estimated at EUR 160 million.
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