State-owned electricity producer Elektroprivreda Crne Gore (EPCG) has requested approval for a €64.2 million long-term loan to finance a portfolio of ten renewable-energy projects with a combined planned capacity of 95.87 MW. The planned investments include the Solari 5000+ distributed solar programme and renewable-energy projects at Željezara, Vrtac, Slano, Krupac and Kapino Polje. EPCG expects the completed portfolio to generate approximately 124,518 MWh of electricity annually.
Financial projections and investment structure
According to EPCG’s submitted financial model, the projects are expected to generate around €20.7 million in revenue during the first full year of operation, with annual EBITDA of nearly €20 million. The model projects an internal rate of return (IRR) of 30.44%, a net present value (NPV) of €196.2 million and a payback period of 3.29 years.
EPCG has already invested approximately €18.9 million of its own capital into the portfolio. A portion of the proposed financing would be used to refinance existing borrowing and strengthen liquidity, rather than being allocated exclusively to new construction activities. Debt repayment is expected to be supported by project cash flows and EPCG’s own financial resources.
Renewable projects linked to energy security
The renewable-energy portfolio is intended to reduce dependence on electricity imports from wholesale markets during periods of lower hydropower production or outages at thermal generation facilities. EPCG reported a €92 million net loss in 2025 after the Pljevlja Thermal Power Plant was unavailable for more than eight months during environmental reconstruction works. During that year, the company imported approximately 1,341 GWh of electricity at a cost of €142 million. The company’s financial performance improved in the first quarter of 2026, when EPCG recorded a net profit of €36.5 million, compared with €10.2 million in the same period a year earlier.
Loan structure and project assessment
The proposed financing arrangement will determine whether EPCG can expand renewable capacity through borrowing without a sovereign guarantee.
The financial assumptions behind the projects, including electricity prices, grid connection availability, curtailment risks, equipment degradation, rooftop-customer repayment, operating expenses and potential commissioning delays, will affect the projected returns and repayment timeline.
