Elektroprivreda Crne Gore (EPCG) says the 54.6 MW Gvozd wind farm is starting to change the seasonal generation balance of its portfolio. The project adds renewable output at a time when weak hydrology has increased EPCG’s reliance on electricity imports and regional wholesale prices. The wind farm’s first three months of operation produced approximately 26 GWh.
EPCG valued that generation at roughly €2.43 million using prevailing Montenegrin market prices. The utility also estimates that Gvozd reduced its electricity deficit by around 8.5% over the same period. EPCG links the impact to the role of non-hydro renewables in a system influenced by rainfall, reservoir levels, and the operating availability of large thermal assets.
First operating results and expected annual output
The Gvozd project has an expected annual generation target of around 150 GWh. EPCG describes the wind farm as becoming material for Montenegro’s domestic electricity market at that scale. The company highlights periods when poor hydrological conditions reduce output from its hydroelectric portfolio.
While wind does not eliminate weather exposure, EPCG says it diversifies generation conditions relative to hydro. Low reservoir levels and weak river inflows do not necessarily coincide with weaker wind conditions, according to the utility’s assessment. This is presented as a broader mix than when hydro and lignite dominated production.
Hydrological stress in 2026 and regional generation constraints
EPCG points to the summer of 2026 as demonstrating hydrological vulnerability across southeastern Europe. Low river flows have affected hydroelectric production across the region. In Romania, cooling-water restrictions have also contributed to the shutdown of nuclear generation.
Montenegro’s power balance has faced similar pressure from hot weather, higher seasonal consumption, and constrained hydro conditions. In this context, EPCG characterises Gvozd as more than incremental capacity within its generation mix.
Gvozd II contract, combined capacity and generation outlook
EPCG is developing an expansion called Gvozd II, with planned capacity of 21 MW. The project is being developed under a €26 million contract with Nordex. Completion of the second phase would bring the combined complex to approximately 75.6 MW.
EPCG expects annual electricity generation from the enlarged complex to exceed 210 GWh. The disclosed contract value is described as indicating a meaningful capital programme rather than a marginal addition. Once both phases are operating, EPCG expects more predictable long-term renewable output without fuel purchases and without creating the same hydrological exposure as its hydro assets.
Market timing, hourly spreads and value during evening hours
EPCG says the commercial value of the project depends on when electricity is produced. It notes that wind has a different system profile from solar, including potential production during evening and overnight periods when photovoltaic output disappears. This timing is linked to scarcity hours associated with higher day-ahead prices this summer.
During the regional trading session for 19 August, several southeastern European markets recorded evening prices above €210/MWh, while some midday hours were close to or below €100/MWh. EPCG says wind available during higher-priced periods can carry greater system and commercial value than energy produced during midday hours dominated by solar output.
No disclosed financial metrics; impact on summer deficit
EPCG has not disclosed project-level operating costs, financing structure, or expected equity returns for the enlarged Gvozd complex in the information reviewed . As a result, it is not possible to establish a reliable project IRR from the disclosed figures alone. The utility says strategic value is already visible in reduced summer energy deficit performance.
The combination of 54.6 MW already operating and another 21 MW planned supports an annual generation outlook potentially rising above 210 GWh. EPCG presents this as an example of renewable investment improving its wholesale-market position rather than only affecting national generation statistics . As additional solar, wind and storage projects are developed, EPCG indicates that Gvozd’s significance will increasingly relate to portfolio economics.
EPCG says each additional megawatt-hour produced domestically during periods of weak hydro reduces volumes purchased from neighbouring markets. It adds that Montenegro can become exposed to prices above domestic production cost under those conditions . The utility states that early operating months indicate Gvozd is beginning to fulfil that role.
