Montenegro’s state power utility EPCG has completed most work on the second of three turbine foundations at its 21 MW Gvozd 2 wind project, advancing a nearly €26 million expansion further into construction. The project is located on the Krnovo plateau. It follows the first phase of the Gvozd wind complex.
Gvozd 2 output targets and development partners
The Krnovo plateau project is expected to generate around 63 GWh a year once commissioned. Nordex is supplying turbines for Gvozd 2. The extension is designed to increase total capacity at the site to 75.6 MW.
After the extension is completed, annual generation at the site is expected to exceed 200 GWh. Financing for the expansion comes from the European Bank for Reconstruction and Development. EPCG’s latest milestone relates specifically to foundation works for one of the three turbine bases.
Financing and construction risk in Montenegro’s renewables pipeline
The foundation milestone comes as Montenegro’s renewable project pipeline is larger than the volume that has reached physical construction so far. Solar, wind and storage projects have multiplied, while grid access, permitting, financing and construction remain key points where development risk is increasingly concentrated.
EPCG said Gvozd 2 has moved beyond earlier development stages. The additional output is intended to diversify EPCG’s portfolio, which remains heavily dependent on hydropower.
Hydropower dependence and trading implications for new wind generation
Montenegro’s hydropower reliance supports a relatively low-carbon electricity system during favourable hydrological years, but it also leaves earnings and import requirements exposed to rainfall and reservoir levels. Wind introduces a different production profile that can reduce exposure to those factors, while adding its own variability.
The value of Gvozd 2 depends not only on annual generation but also on when electricity is produced. Wind can be particularly relevant when output aligns with periods of weak solar production or high regional prices. Montenegro’s hydro flexibility can help reservoirs complement variable wind output more effectively than systems dominated by inflexible generation.
The expansion also comes alongside a wider renewable investment pipeline being developed by EPCG, including solar projects and additional wind capacity. Montenegro is increasingly connected to regional trading conditions via its domestic network and the subsea electricity interconnector with Italy.
With 21 MW already under construction, Gvozd 2 represents capacity moving through build-out rather than remaining in the development pipeline. For Montenegro’s electricity balance, completing projects like Gvozd 2 is becoming more important than announcing new ones.
