A joint venture of Montenegrin power utility Elektroprivreda Crne Gore (EPCG) and Masdar from the United Arab Emirates will build two solar farms in Montenegro of a combined 190 MW in peak terms, while considering 400 MW of pumped storage hydropower capacity, under a new agreement. The two companies also intend to invest in wind power, battery storage and hybrid power plants.
Abu Dhabi Future Energy Co. – Masdar and Elektroprivreda Crne Gore (EPCG), Montenegro’s state-owned power utility, advanced their strategic partnership into the project implementation phase by signing agreements covering solar power of 190 MW in peak capacity and the potential development of more than 400 MW of pumped storage hydropower. A joint venture that they earlier agreed to establish would develop up to 2 GW of renewable energy in the Balkan country.
It would be a platform to meet growing domestic electricity demand, strengthen the country’s energy security and support future electricity exports to neighbouring European markets, EPCG pointed out.
First projects within 2 GW portfolio in Montenegro
The new agreements cover photovoltaic projects Štedim (140 MW) and Krupac (50 MW). Masdar, based in the United Arab Emirates, and EPCG also signed a framework cooperation agreement to explore the joint development of pumped storage hydropower projects with a combined capacity exceeding 400 MW.
By storing electricity when generation exceeds demand and releasing it into the grid when needed, pumped-storage hydropower plants could enable Montenegro to integrate a greater share of renewable energy while improving the flexibility, stability and resilience of its power system, the national utility stressed.
Electricity export aspirations
The partners said in April they would launch a 50/50 joint venture aimed at developing large-scale projects across a range of technologies including solar power, wind power, hydropower, pumped storage hydropower, battery energy storage and hybrid energy solutions.
The three agreements laid the foundations for long-term cooperation, EPCG’s CEO Zdravko Dragaš saiid
Their joint venture is aimed at enabling renewable electricity exports to the Western Balkans and Southern European markets, including through Monita, Montenegro and Italy’s existing subsea electricity interconnector.
EPCG’s Chief Executive Officer Zdravko Dragaš said the signing of the three agreements laid the foundations for long-term cooperation.
“We expect this cooperation to further strengthen the energy transition process, improve the company’s competitiveness and create new opportunities for the development of Montenegro’s economy,” he stated.
Joint venture deal is worth hundreds of millions of euros
Demand for reliable and affordable energy in Europe is growing, and the need for new capacity has never been greater, according to UAE’s Minister of Industry and Advanced Technology and Chairman of Masdar Sultan Ahmed Al Jaber.
Today’s agreements reflect Masdar’s ability to bring global expertise, proven technologies and long-term investment to markets with strong growth potential, he underscored.
“For years, we have spoken about Montenegro’s exceptional renewable energy potential. Today, we can say that we have created the conditions for that potential to be transformed into concrete projects. Through this partnership, we are not merely building new energy capacity; we are building a safer, stronger and more competitive Montenegro. We are launching investments worth hundreds of millions of euros that will strengthen our energy security, create new jobs and development opportunities for our citizens, provide a more stable electricity supply for the economy and create the conditions for green energy to become one of Montenegro’s most important export products,” said Minister of Energy and Mining Admir Šahmanović.
CEO of Masdar Mohamed Jameel Al Ramahi expressed willingness to deepen cooperation with EPCG and the Government of Montenegro “and further strengthen its position as a regional energy leader.”
