Elektroprivreda Crne Gore (EPCG) is currently undergoing the most significant investment cycle in its recent history, aimed at increasing electricity production from renewable sources and enhancing the country’s energy independence.
Through 23 projects, with a total value estimated at 512.42 million euros, EPCG plans to significantly expand the capacity of solar power plants, wind farms and small hydropower plants by the end of 2027. These projects are at various stages of development, with key prerequisites for successful implementation—obtaining Urban Planning and Technical Conditions (UTU) and securing financing—already met for most of the initiatives.
This investment cycle marks a pivotal step in Montenegro’s energy transition, aligning with European standards and reducing harmful gas emissions. Furthermore, increasing the capacity for green energy production contributes to the country’s energy independence and creates opportunities for exporting excess energy to regional markets.
Solar power plants and wind farms
Solar power plants and wind farms are the cornerstone of EPCG’s strategy to increase electricity production from renewable sources. These projects not only help reduce carbon dioxide emissions but also enable the diversification of energy sources, reducing reliance on fossil fuels.
Wind farms:
- VE Gvozd (54 MW, 82 million euros) – This project is in the final stages of preparation for construction. Urban Planning and Technical Conditions (UTU) have been obtained, and financing has been secured. The construction of VE Gvozd, located in Nikšić, will significantly increase the share of wind-generated energy in Montenegro’s overall energy mix.
- VE Brajići (100 MW, 140 million euros) – This project is currently resolving property and legal issues, with financing already secured. Once these procedures are completed, construction is expected to begin, making this wind farm one of the largest renewable energy sources in the country.
Solar power plants on hydroelectric facilities
EPCG has recognized the potential for combining solar and hydro energy by installing solar panels on hydroelectric facilities, further increasing their efficiency.
- SE Brana Vrtac (3 MW, 2.2 million euros) – The project has obtained the necessary UTU, and financing has been secured. Construction is expected to begin in the coming months.
- SE Brana Krupac (1 MW, 600,000 euros) – Similar to Brana Vrtac, UTU have been obtained and financing is secured. Construction will soon begin, transforming this hydroelectric facility into a hybrid plant utilizing both hydro and solar energy.
- SE Željezara Nikšić (23.6 MWp, 18.8 million euros): One of the key solar projects is the SE Željezara in Nikšić, where part of the solar panels have already been installed. UTU have been obtained, and financing is secured. Once completed, this power plant will significantly contribute to reducing energy consumption from conventional sources.
Kapino Polje: A solar complex transforming Nikšić
One of the most ambitious solar energy projects is the construction of a solar power plant complex at Kapino Polje in Nikšić. With a total capacity of 61.09 MWp and a value of 35.1 million euros, this complex will become one of the most important renewable energy sources in the country. The project is divided into four phases:
- Kapino Polje L1 (6.04 MWp, 3.5 million euros) and Kapino Polje L2 (6.02 MWp, 3.5 million euros) – Both plants have obtained UTU, financing is secured, and construction has already begun.
- Kapino Polje B1 (11.43 MWp, 6.6 million euros) and Kapino Polje B2 (37.6 MWp, 22.5 million euros) – UTU have been obtained, and the environmental impact assessment process is underway. Once this phase is completed, construction will begin.
This complex is particularly significant for the local community in Nikšić, not only due to the increase in electricity production but also because it will create new jobs during the construction and later during the operation of the facilities.
Hydropower development
In addition to solar and wind energy, EPCG is investing in the development of hydropower plants, with a particular focus on small hydropower plants that utilize local watercourses.
- mHE Otilovići (3 MW, 6.7 million euros) – A concession for the construction of this small hydropower plant has been obtained, and the Main Project is currently being developed. Once completed, this plant will contribute to the stability of the power system, especially during periods of high electricity demand.
- SE Krupac (47 MWp, 28.2 million euros) – The project is in preparation for the Main Project development, with UTU already obtained and financing secured. This plant will be located near the Krupac hydropower plant, allowing for synergy between solar and hydro energy.
Battery energy storage systems
To ensure the stability of the power system and enable efficient use of energy from renewable sources, EPCG plans to implement battery energy storage systems (BESS).
- BESS capacity of 300 MW – The project is valued at 15 million euros and is currently in the public procurement process. These battery systems will allow for the storage of excess energy generated during periods of high solar and wind potential, ensuring stable supply even when renewable energy production decreases.
In addition to battery systems, EPCG plans to purchase key equipment for integrating solar power plants into the power system:
- Inverters with a capacity of 300 MW (9 million euros) – Financing has been secured, and technical specifications are being prepared.
- Transformers for integrating solar power plants with a capacity of 300 MW (15 million euros) – Similar to inverters, financing has been secured, and technical documentation is under preparation.
UTU and financing
One of the key prerequisites for the implementation of these projects is obtaining Urban Planning and Technical Conditions (UTU), which allow for the continuation of procedures such as the development of the Main Project and the issuance of building permits. As of now, most of the projects have obtained UTU, and the remaining ones are in the process of acquiring them.
Equally important is securing financing, which ensures the smooth progress of work and procurement of equipment. All projects included in the investment cycle already have secured financial resources, guaranteeing their realization within the planned timelines.
With an investment cycle worth 512.42 million euros, EPCG is making a significant mark in Montenegro’s energy transition. With 23 projects at various stages of implementation, most of which have secured UTU and financing, Montenegro is expected to significantly increase its share of renewable energy sources by 2027.
This is excellent news for EPCG, which is currently facing challenges due to a nine-month ecological reconstruction of its thermal power plant and the need for electricity imports.
