Montenegro’s state-owned power utility Elektroprivreda Crne Gore (EPCG) has requested government approval for a €64.2 million long-term loan to support a portfolio of ten solar and distributed-generation projects with a combined planned capacity of 95.87 MW. The proposed financing covers projects including Solari 5000+, solar installations at the Željezara industrial complex, and facilities at Vrtac, Slano, Krupac and Kapino Polje.
EPCG estimates that the portfolio would generate a combined 124,518 MWh of electricity annually. The company’s financial projections indicate approximately €20.7 million in annual revenue, nearly €20 million in EBITDA, an estimated 30.44% internal rate of return, a net present value of €196.2 million, and a projected payback period of 3.29 years. The projected financial indicators are based on EPCG assumptions and depend on factors including realised electricity prices, construction costs, grid connection availability and operational performance.
Financing to include refinancing of earlier investments
EPCG has already invested around €18.9 million of its own funds into the projects. A portion of the requested borrowing would be used to refinance previous commitments, improving liquidity rather than funding only new construction activities. The renewable portfolio is being developed after a challenging period for the utility. In 2025, EPCG recorded a net loss of approximately €92 million, compared with an €11 million profit in 2024.
The company’s financial results were affected primarily by the shutdown of the Pljevlja thermal power plant for more than eight months during environmental reconstruction works. During that period, EPCG imported around 1,341 GWh of electricity at a cost of approximately €142 million. EPCG later reported a €36.5 million net profit in the first quarter of 2026, compared with €10.2 million in the same period of the previous year.
Solar projects linked with tourism facilities
The requested financing is intended to increase renewable electricity production while reducing EPCG’s dependence on extended thermal power plant outages and electricity purchases from the wholesale market. The Ministry of Tourism and EPCG have also reached an agreement to promote solar installations at hotels and other tourism facilities. More than €2.2 million in grant support has already been allocated for energy-efficiency measures in hotels, while an additional €500,000 public call is planned for September 2026.
The initiative creates an additional investment segment connecting tourism facility upgrades, rooftop solar installations, reduced seasonal electricity costs and environmental certification aligned with European Union standards.
