Elektroprivreda Crne Gore (EPCG) has received approval to seek up to €64.22 million in long-term financing for ten renewable-energy projects with a combined installed capacity of 95.87 MW and projected annual electricity generation of 124.5 GWh. The portfolio comprises Solari 5000+, solar installations at Željezara Nikšić, photovoltaic arrays at the Vrtac, Slano and Krupac dams, four units at Kapino Polje and the first phase of Krupac 47.
The proposed financing amounts to approximately €670,000 per installed MW. This could cover a substantial share of construction expenditure if grid-related works remain limited. The portfolio’s projected generation corresponds to an implied capacity factor of approximately 14.8 per cent, consistent with a group of projects dominated by distributed and conventional photovoltaic generation. EPCG has not disclosed the proposed debt’s maturity, interest rate, grace period or security package. These conditions will determine the assets’ ability to maintain sufficient debt-service coverage during periods of lower electricity prices.
For contracted solar projects, a portfolio debt-service coverage ratio of 1.25 to 1.35 would normally be expected, while projects with merchant revenues would require higher coverage. The distributed nature of several installations can reduce grid-connection costs and locate electricity generation closer to consumption. Solar facilities at dams and industrial locations can also make use of existing land, access roads and electrical infrastructure. Geographic distribution does not eliminate exposure to wholesale-market conditions, however, because solar generation across the portfolio remains highly correlated and concentrated during midday hours.
EPCG is also required to support coal-plant compliance, hydropower maintenance, new wind generation and its partnership with Masdar. The proposed €64.22 million financing facility separates a group of smaller and potentially faster-to-deploy renewable assets from EPCG’s larger strategic project pipeline.
