Montenegro’s state-owned power utility Elektroprivreda Crne Gore (EPCG) has requested government approval for long-term borrowing of up to €64.22 million to finance a portfolio of 10 renewable energy projects with a combined installed capacity of 95.87 MWp and projected annual electricity production of 124,518 MWh.
The request, submitted on 10 July, represents the largest corporate financing proposal of the week and expands EPCG’s debt-funded investment programme in renewable energy. The implied financing requirement is approximately €670,000 per MWp, although the figure does not represent a direct construction-cost benchmark because the financing package covers multiple projects with different development stages, locations, technical conditions and balance-of-plant requirements.
EPCG expands renewable investment pipeline
The proposed borrowing strengthens EPCG’s role as Montenegro’s main renewable energy investor and aggregator. The company’s broader direct development pipeline includes solar, wind, hydropower and battery storage projects, with projects under development previously estimated at around 639 MW and approximately €646.5 million in total investment. EPCG’s renewable portfolio includes the operational 54.6 MW Gvozd 1 wind farm, the planned 21 MW Gvozd 2 expansion, and the proposed 60 MW/240 MWh battery storage facility at EPCG Željezara Nikšić.
Financial performance supports investment expansion
The new financing proposal increases the importance of monitoring EPCG’s consolidated financial position as the company enters a larger investment cycle. EPCG reported a recovery in the first quarter of 2026, with net profit of approximately €36.5 million, compared with €10.2 million in the same period a year earlier.
The improvement followed a challenging 2025, when the company faced higher electricity import costs, unfavourable hydrological conditions and a prolonged outage at the Pljevlja Thermal Power Plant.
Share capital reduced after treasury share cancellation
During the same week, EPCG completed a capital restructuring process involving the cancellation of 110,015 treasury shares. Following the cancellation, the company’s share capital was reduced from approximately €714.7 million to €713.8 million. The cancelled shares had previously been acquired for around €923,100 from shareholders who opposed EPCG’s €82 million EBRD loan for the Gvozd wind project. The Government of Montenegro continues to hold approximately 98.6% of EPCG.
Renewable portfolio financing depends on project assumptions
The financial assessment of the new renewable energy portfolio will depend on several project-level factors, including generation assumptions, grid connection readiness, curtailment exposure, EPC pricing and the treatment of merchant electricity revenues. Projects financed primarily through EPCG’s corporate balance sheet may move into construction more quickly than standalone project-finance structures. At the same time, such financing structures combine multiple risks within a single state-owned borrower, including exposure related to hydrology, thermal generation, electricity import prices and construction execution.
