Government working group begins partner-selection preparations
Montenegro has started preparations to choose a strategic partner for a large-scale battery energy storage project to support the rapid expansion of solar and other renewable generation. The Government has authorised a working group to oversee the partner-selection process. Details on the planned storage capacity, investment value and tender timetable have not yet been disclosed.
The initiative is linked to efforts to expand electricity-system flexibility as renewable output grows. The Government’s partner-selection framework is intended to guide how the project develops, including the commercial approach.
EPCG pursues storage partnerships with PowerX and Masdar
State-owned utility EPCG is pursuing partnerships aimed at expanding Montenegro’s energy-storage capabilities. In May, EPCG signed a memorandum with Japanese battery manufacturer PowerX covering cooperation on approximately 500 MWh of storage during an initial three-year period. PowerX is also considering establishing battery-system assembly operations in Montenegro.
EPCG has also entered into agreements with Abu Dhabi-based Masdar covering renewable energy and storage projects. The separate arrangements highlight EPCG’s focus on flexibility infrastructure as Montenegro expands its clean-energy portfolio.
Previous procurement cancelled; solar growth lifts storage needs
The latest partner process follows an earlier large-scale procurement that did not proceed. EPCG cancelled a EUR 58 million tender in 2025 for two battery systems with a combined capacity of 30 MW/120 MWh, after the Government declined to approve the loan required to finance the project. Smaller battery procurements have continued since then.
Storage requirements are expected to rise as Montenegro adds more solar capacity. The country’s 2026 energy balance projects installed solar capacity reaching 215 MW by the end of the year, with annual solar generation forecast to increase from 76 GWh in 2025 to 198 GWh in 2026.
The increase in photovoltaic generation is expected to require additional flexibility, balancing and shifting of electricity production from high daytime solar output to hours when demand is higher. Large-scale batteries are also expected to support more efficient integration of renewable capacity and reduce pressure on the electricity system during periods of rapidly changing generation.
For EPCG and the Government, selecting a strategic partner could be a step toward building a larger-scale storage infrastructure base. The eventual capacity, financing structure and commercial model will determine how significant the project becomes within Montenegro’s wider energy transition.
