Montenegro is on the verge of a significant milestone in its energy sector, with the upcoming launch of the Gvozd wind farm near Krnovo. This state-owned renewable energy facility is expected to begin electricity production by the end of March 2024, marking the first new facility of its kind in over forty years and arriving approximately four months ahead of schedule.
Project manager Nikola Vukotić has indicated that the wind farm will initially enter a trial operation phase, during which electricity generation will be limited as turbine testing occurs. This initial period is anticipated to last one to two months, after which output is projected to gradually increase until it reaches planned capacity. By the second or third month post-launch, generation should align closely with target levels.
The Gvozd wind farm is designed to produce around 150 GWh of electricity annually, sufficient to power approximately 25,000 households. However, seasonal variations in wind conditions may affect actual production levels. Notably, a significant portion of the expected output is anticipated by 2026, reflecting an accelerated timeline for project completion. The early operational phase also lays groundwork for a subsequent project known as Gvozd 2. Upon securing its operating permit, Gvozd 1 will transition into full commercial operation under the management of Montenegro’s state utility, EPCG.
The financing for this ambitious project was secured through an €82 million loan agreement with the European Bank for Reconstruction and Development (EBRD), finalized in June 2023. This investment represents EBRD’s largest direct involvement in Montenegro’s energy sector to date. Stakeholders view the advancement into a second phase as a logical progression in their partnership with EBRD and a critical step toward enhancing decarbonization efforts and diversifying Montenegro’s energy portfolio.
The foundation stone for the Gvozd wind farm was laid in November 2024. The commissioning of this facility is expected to bolster Montenegro’s energy security and significantly reduce its dependence on electricity imports over the long term.
