Montenegro’s state-owned power utility EPCG is progressing with construction of the 21 MW Gvozd 2 wind farm, with the second of three turbine foundations nearing completion. The project, being developed with turbine manufacturer Nordex, is valued at almost €26 million and is expected to produce around 63 GWh of electricity annually after completion.
Gvozd 2 will expand the existing wind-generation complex on the Krnovo plateau. Once completed, the combined facility is expected to reach 75.6 MW of capacity and generate more than 200 GWh annually, equivalent to the consumption of around 35,000 households.
Construction advances at Krnovo
EPCG said on Sept. 2 that the second of the three turbine foundations was nearing completion. The latest update did not provide a revised commissioning date. The project is part of EPCG’s investment strategy covering wind and solar generation, hydropower modernisation and grid-supporting projects.
The utility is also cooperating with international developers to increase the number of projects capable of progressing to construction. Gvozd 2 is being developed as Montenegro seeks to increase domestic generation and reduce exposure to hydrological conditions and ageing thermal assets.
Wind generation to diversify electricity supply
The additional 63 GWh of annual wind production represents a relatively small volume compared with Montenegro’s overall power system but adds generation without fuel costs and diversifies the electricity mix. Hydropower remains central to the country’s electricity balance but depends on rainfall and reservoir conditions. During periods of weak hydrology, lower hydro output can increase the need for electricity imports or additional thermal generation.
Wind generation is also variable, but a broader combination of generation sources can reduce dependence on any single resource. The Krnovo plateau is already an established wind-generation area, while expansion of an existing renewable cluster can make use of established roads, grid infrastructure and operational experience.
Grid integration remains a key requirement
Further wind and solar development also increases requirements for transmission and distribution networks, generation forecasting and system flexibility, including storage, hydropower and regional electricity trading. Montenegro’s transmission operator CGES and distribution operator CEDIS are implementing investment programmes, while battery storage is becoming increasingly relevant to the country’s energy sector.
The commercial performance of new renewable projects will also depend on electricity-market conditions. Southeast European power markets have experienced more frequent periods of very low or negative prices during hours of high renewable production, increasing the importance of managing market exposure rather than relying only on annual generation estimates. For EPCG, the value of Gvozd 2 will therefore be linked not only to its projected 63 GWh annual output but also to the timing of generation, regional electricity prices and the position of the project within the company’s wider portfolio. A diversified utility can combine wind generation with hydropower, thermal assets, customer demand and cross-border trading to manage market exposure.
Project supports wider export strategy
The Gvozd expansion forms part of Montenegro’s broader objective of strengthening its position as a regional electricity exporter. The country is interconnected with neighbouring power systems and has a subsea electricity cable linking Montenegro with Italy, providing potential access to markets beyond domestic demand.
Export returns will depend on regional price differences, transmission congestion and available network capacity. Additional renewable generation could also help EPCG lower the carbon intensity of its portfolio as European climate policies increase pressure on coal-based generation. The Pljevlja thermal power plant remains strategically important for security of supply, but its long-term role is constrained by emissions requirements and EU decarbonisation policy. Additional renewable capacity could provide EPCG with greater flexibility as Montenegro moves closer to EU membership and deeper integration with European electricity markets and carbon rules.
EPCG faces broader capital requirements
The €26 million Gvozd 2 investment represents only part of EPCG’s wider capital programme. The utility is pursuing several solar and wind projects, hydropower refurbishment and other energy investments, while also managing working-capital pressures, including substantial electricity receivables. Project sequencing and financing discipline will therefore remain important as the company expands its generation portfolio within capital and grid constraints.
Gvozd 2 is also part of Montenegro’s wider renewable project pipeline, where proposed developments, permits and memoranda still need to translate into physical construction and operating capacity. The current construction progress places the project among those moving beyond development stages. After completion, the broader Gvozd complex will have 75.6 MW of capacity and expected annual production of more than 200 GWh.
