Montenegro’s state power utility EPCG has completed work on the second of three turbine foundations at the 21 MW Gvozd 2 wind farm. The milestone advances a nearly €26 million expansion intended to reduce exposure to hydrological volatility and electricity imports. The project is located on the Krnovo plateau.
Gvozd 2 output and scale within EPCG’s wind portfolio
Once completed, Gvozd 2 is expected to produce about 63 GWh per year. Together with existing Gvozd capacity, the expansion will raise the wider complex to 75.6 MW. Expected annual production for the combined setup is more than 200 GWh.
EPCG is developing the extension with turbine manufacturer Nordex. Financing support for the project comes from the European Bank for Reconstruction and Development. The foundation work is part of moving the project further from development into physical execution.
Hydropower dependence and the role of wind generation timing
The construction milestone is significant because Montenegro’s electricity balance remains heavily dependent on hydropower. During dry periods, reduced reservoir output can increase import requirements and expose EPCG to higher regional wholesale prices. Wind offers a different generation profile compared with hydro.
Unlike solar generation, which is concentrated around daylight hours, wind can produce during evenings and overnight periods. Those hours often coincide with higher regional electricity prices. As Southeast Europe adds more photovoltaic generation, additional wind capacity can become increasingly relevant for meeting demand during those periods.
Regional integration and construction-stage risk
The first Gvozd development has already added non-hydro renewable output to EPCG’s portfolio. Gvozd 2 is designed to deepen that diversification while using an established development area and existing operating experience. The project remains smaller than multi-hundred-megawatt renewable developments proposed elsewhere in the region, but it contributes within Montenegro’s power system.
A further 63 GWh of annual generation can reduce imports when hydrological conditions are weak. It can also help EPCG preserve reservoir water for higher-value hours. The project aligns with Montenegro’s approach of combining wind and solar development with hydro flexibility and cross-border trading.
Montenegro is connected to neighbouring Balkan systems and Italy through an undersea cable, providing access to several markets for additional generation . The commercial value of Gvozd 2 depends not only on annual output but also on when electricity is generated, including during regional evening scarcity . Construction risk remains until turbine installation, electrical works and grid commissioning are completed .
Montenegro has accumulated a large pipeline of proposed renewable projects, but relatively few have reached construction. With its foundation milestone, Gvozd 2 continues progressing toward operation as another test of converting renewable plans into operating capacity that reduces import and hydrological risk .
