Montenegro has shifted toward a strategic-partner model for a 60 MW / 240 MWh battery project after the government did not approve borrowing for a large procurement led by EPCG. A government decision published in October 2026 established a working group for the strategic project and entered into force on 17 October 2026.
EPCG’s original plan was to install two battery energy storage systems at Zelezara Niksic, each with 30 MW of power and 120 MWh of capacity. The combined project would have provided 60 MW and 240 MWh. The procurement was cancelled after the government rejected the borrowing needed to finance it, while a later, smaller pilot tender failed to attract bids.
The cancellation and the absence of bids have reinforced concerns about delivering battery storage projects in Montenegro. The challenge is financing and execution, rather than a lack of potential uses: the country has hydro resources, rapidly growing solar, volatile import requirements and access to regional electricity markets.
Under the strategic-partner concept, an investor could provide technology, engineering, procurement and construction execution, as well as part of the capital structure. That would avoid leaving EPCG to procure equipment and raise debt separately. The structure could also provide a clearer route to performance guarantees and long-term operating support, factors relevant to bankability.
The 60 MW / 240 MWh scheme is the reference project and first phase of a broader partnership. A future tender should be assessed not only on its headline EUR per MWh, but also on whether completion, performance and market risks are assigned to partners able to absorb them. Battery storage technology is mature; the remaining task is to establish financing that secures public-sector approval and reaches financial close.
