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Montenegro clears Željezara solar expansion without full environmental impact assessment

Montenegro’s Environmental Protection Agency has approved the planned expansion of the Željezara solar power project in Nikšić. The agency ruled that the development can proceed without preparing a full environmental impact assessment. The decision removes a regulatory hurdle for implementation.

The project is being developed by state-owned utility EPCG through its subsidiary EPCG Zeljezara. It will be located on the premises of the former steel production complex. Under the agency’s approval, the investor must follow all approved technical documentation. Compliance with applicable engineering, safety, and environmental standards is required during both construction and operation, including in case of unforeseen incidents.

Site layout and photovoltaic capacity breakdown

The solar complex will be spread across multiple areas within the industrial site. Most of the installed capacity will be placed on rooftops of existing facilities. Additional photovoltaic panels will be installed on available ground surfaces. Existing solar installations already operating on one of the plant’s buildings will also be integrated into the expanded design.

Project documentation sets total installed capacity at 34.58 MW. This includes 21.21 MW on rooftops, 11.45 MW on ground-mounted structures, and 1.92 MW from already deployed panels. Once fully operational, the plant is expected to generate approximately 46.6 GWh of electricity annually.

Earlier assessment and expanded scope

The approval follows an earlier assessment in which authorities determined that a smaller version of the project did not require a comprehensive environmental study. Since then, EPCG has expanded the scope of the development. In late 2024, the company initially presented plans for a 23 MW solar facility at the Željezara site.

The initial plans in late 2024 put the estimated investment value at EUR 13.8 million. The enlarged project forms part of EPCG’s broader strategy for transforming the former steel plant into a renewable energy hub. It is also aimed at increasing Montenegro’s domestic clean electricity generation capacity while supporting long-term energy transition goals.

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