A series of court disputes tied to the cancellation of small hydropower concessions is creating legal and financial risk for Montenegro, with compensation claims amounting to tens of millions of euros. Government data published in 2024 shows the state is party to 10 court proceedings. The cases were initiated by concession holders whose contracts were either terminated or allowed to expire.
Most lawsuits seek reimbursement for investments already completed, alongside compensation for lost future profits. Investors argue those profits would have been earned over concession periods extending up to three decades. The claims therefore cover both sunk costs and projected earnings.
Disputes linked to post-2020–2021 government decisions
Many of the disputes stem from decisions taken after the change of government in 2020–2021. During that period, authorities unilaterally terminated several concession agreements. Only one dispute is linked to a previously negotiated termination involving the Dekar-Hidro project.
The first court rulings have started to emerge. In the case involving BB Hidro, the court awarded compensation for part of the claimed direct damages. It rejected a request for more than €1.4 million in lost profit compensation.
Projects on multiple rivers and spread across investor groups
Government records indicate that the disputes involve projects located on numerous watercourses. These include the Bukovica, Đurička, Komaraca, Bistrica, Muriška, Ljeviška, Trepačka, Slatina, Reževića rivers, and the Crnja river. The lawsuits are distributed across several investor groups rather than concentrated within a single network.
Publicly available information points to at least three major investor clusters. One cluster includes companies connected to Florin Krasniqi and Triangle General Contractors. Another group involves Plava Hydro Power and associated partners.
A third network is linked to Hydra MNE, Igma Energy, and several domestic investors. The legal proceedings continue as these cases move through the courts.
Small hydropower sector criticism and focus on lost profits
The disputes are unfolding amid long-standing public criticism of Montenegro’s small hydropower sector. Critics have argued that economic benefits were largely captured by concession holders. They also said local communities saw limited gains despite environmental impacts from the projects.
Analysts expect potential financial exposure for the state could be substantial because many lawsuits rely heavily on claims for lost profits rather than only reimbursement of invested capital. As the cases progress through litigation, they are increasingly viewed as among the most significant legal and financial challenges related to Montenegro reversing its earlier small hydropower development policy.
