Montenegro’s state-owned power utility EPCG has submitted an environmental impact assessment for the planned €22.5 million Kapino Polje B2 solar plant near Nikšić, advancing the project towards potential construction.
The proposed facility would have an installed photovoltaic capacity of approximately 37.6 MWp and cover around 45.9 hectares. Engineering documentation the installation of 64,872 photovoltaic modules. Environmental approval has not yet been granted, and the assessment represents one stage in the project’s development process.
Kapino Polje Solar Programme
Kapino Polje B2 forms part of EPCG’s broader solar development programme at Kapino Polje, previously estimated at approximately €35.1 million. Solar expansion is part of the utility’s efforts to diversify an electricity generation portfolio historically dominated by hydropower and the Pljevlja coal-fired power plant. Solar generation could reduce dependence on hydrological conditions, although greater variable output also increases requirements for balancing, storage and electricity network flexibility.
The project reflects the development of utility-scale solar facilities connected to Montenegro’s electricity system, beyond smaller rooftop installations.
Investment and Grid Requirements
The planned €22.5 million investment would create demand for photovoltaic modules, inverters, substations, civil engineering, electrical engineering and grid-connection services. Financing details have not been disclosed. Following environmental assessment, EPCG will still need to secure the necessary approvals, complete procurement, arrange grid integration and carry out construction before the plant can begin generating electricity.
Montenegro’s renewable energy project pipeline is expanding, although announced or permitted developments do not necessarily proceed to financial close and construction. The distinction between permitting and secured financing remains important for investors and lenders. EPCG’s established balance sheet and electricity portfolio may provide a different financing position from that of private developers. The utility is also funding wind, solar, network and thermal-generation investments, requiring careful capital allocation.
As additional variable renewable capacity connects to the electricity system, transmission, distribution, storage and balancing infrastructure will become increasingly important to the commercial performance of individual projects. The next milestones for Kapino Polje B2 are environmental clearance, procurement and confirmation of an implementation timetable.
