Montenegro’s state-owned electricity utility EPCG and Abu Dhabi renewable-energy group Masdar have selected the first projects under a new joint-development platform. The programme starts with almost 190 MW of solar capacity, alongside studies for more than 400 MW of pumped-storage hydropower.
Initial solar portfolio and pumped-storage studies
The initial investment package includes the 140 MW Stedim solar project and the 50 MW Krupac solar plant. The partners have also agreed to assess pumped-storage projects with combined capacity exceeding 400 MW.
The planned work adds an energy-storage component intended to support future solar and wind development. The partners’ assessment covers pumped-storage projects beyond the initial solar package.
50:50 joint venture and target renewable capacity
The projects will be developed through a 50:50 joint venture. The platform is set up to pursue up to 2 GW of renewable capacity in Montenegro.
The envisaged portfolio may include solar, wind, conventional hydropower, pumped storage, batteries and hybrid generation systems. The selection of technologies is therefore not limited to solar alone within the programme scope.
Role of storage in Montenegro’s power balance
The agreement is positioned against a system that remains highly dependent on hydrology and the availability of the Pljevlja coal-fired power plant. New solar capacity can reduce daytime imports and preserve reservoir water, but it can also create surplus output during low-demand hours without additional measures.
Pumped-storage assets are described as central to the investment logic, with more than 400 MW of flexible storage enabling absorption of low-priced solar output. The facilities would also provide balancing services and release electricity during evening peaks.
Regional trading routes via interconnections and Italy cable
Pumped storage could also support regional trading across Montenegro’s interconnections with Serbia, Bosnia and Herzegovina, Albania and Kosovo. The submarine cable connecting Montenegro with Italy provides an additional commercial route for the portfolio.
Italian electricity has frequently traded at a substantial premium to the Western Balkans, creating an export opportunity when interconnector capacity is available. The location therefore supports a strategy combining domestic supply, regional balancing and sales into Italy.
Project economics, financing inputs and EPCG role
The economics will depend on network capacity, permitting, land access and the structure of offtake arrangements. Utility-scale solar in the Western Balkans is increasingly exposed to midday price compression, which affects merchant revenue assumptions.
Storage, bilateral power-purchase agreements and coordinated dispatch with EPCG’s hydropower assets are identified as factors for protecting project returns. Masdar’s participation is linked to international development experience and potential access to lower-cost financing.
EPCG contributes local generation assets, market knowledge, grid relationships and a central position within Montenegro’s electricity sector. The first 190 MW provides an initial starting portfolio within the broader programme framework.
The programme emphasis extends to integrating solar with pumped storage alongside cross-border trading capabilities. This combination is described as a shift from reliance on hydrology toward a more flexible regional electricity platform.
