Montenegro has shifted its planned 60 MW / 240 MWh battery energy storage system (BESS) project from conventional utility procurement toward a strategic-partner model after the government did not approve borrowing for EPCG’s original project. The change is intended to create a financeable route to delivery by potentially bringing an investor into project execution and capital provision, rather than leaving EPCG to procure equipment and raise debt separately.
A government decision establishing a working group for the BESS strategic project entered into force on 17 October 2026. The partnership concept uses the 60 MW / 240 MWh installation as its first phase within a broader partnership. Montenegro’s 2026 policy response has shifted from conventional utility procurement toward strategic-partner development.
EPCG’s original procurement covered two units, each with a capacity of 30 MW / 120 MWh, planned for Zelezara Niksic in Montenegro. The government did not approve the borrowing required to finance the project, and a later tender for a smaller pilot attracted no bids. The procurement was cancelled after the borrowing approval was not granted.
Under the strategic-partner model, an investor could contribute technology, engineering, procurement and construction (EPC) execution, and part of the capital structure. This would bring those elements together rather than requiring EPCG to procure equipment and raise debt separately. The structure could also provide a clearer route to performance guarantees and long-term operating support, both described as essential for bankability.
Montenegro’s BESS challenge is described as one of financing and delivery, not a shortage of relevant uses or mature technology. Potential applications include hydropower, rapidly growing solar generation, volatile electricity import requirements and access to regional electricity markets. These use cases provide the context for the proposed first phase, while the strategic-partner approach changes how its financing and delivery could be arranged.
Any next tender should be assessed not only on its headline EUR per MWh, but also on whether completion, performance and market risks are allocated to parties able to absorb them. Montenegro needs a financing model that can secure public-sector approval and reach financial close, rather than another demonstration of BESS technology.
