Montenegro’s state-owned power utility EPCG has submitted an environmental impact assessment for its planned €22.5 million Kapino Polje B2 solar plant near Nikšić, moving the project into the environmental approval process ahead of potential construction.
The proposed facility would have an installed photovoltaic capacity of approximately 37.6 MWp and occupy around 45.9 hectares. Engineering documentation предусматриes the installation of 64,872 photovoltaic modules.
Environmental approval has not yet been granted, and the project must pass further development stages before construction can begin.
Kapino Polje Forms Part of EPCG’s Solar Programme
The B2 project belongs to EPCG’s wider Kapino Polje solar development programme, previously estimated to require approximately €35.1 million. Solar expansion is an increasingly important element of the utility’s efforts to diversify its electricity generation portfolio, which has historically relied heavily on hydropower and the Pljevlja coal-fired power plant.
Solar generation can reduce exposure to hydrological conditions, but its variable output also increases requirements for electricity balancing, storage and network flexibility. The planned facility reflects Montenegro’s transition from relatively small rooftop installations towards utility-scale solar projects connected to the national electricity system.
Construction and Financing Remain Outstanding
The €22.5 million investment would generate demand for photovoltaic modules, inverters, substations, civil engineering works, electrical engineering and grid-connection services.
Environmental assessment represents only one stage of project development. EPCG must still secure the necessary final approvals, conduct procurement, arrange grid integration and complete construction before the plant can begin generating electricity.
Financing details have not been disclosed.
The project is advancing amid an expanding pipeline of renewable energy developments in Montenegro. Numerous solar and wind projects have been announced or permitted, but a smaller number have reached financial close and construction. The distinction between obtaining permits and securing financing remains important for investors and lenders assessing project readiness.
Grid Capacity and Capital Allocation Remain Important
EPCG’s established balance sheet and electricity portfolio could provide a more accessible financing route for Kapino Polje B2 than for many privately developed projects. However, the utility is also financing wind, solar, electricity network and thermal-generation investments, increasing the importance of capital allocation across its development programme.
The expansion of variable renewable generation will also require additional investment in transmission, distribution, energy storage and balancing systems. The commercial performance of individual solar facilities will increasingly depend on the electricity system’s ability to accommodate and manage fluctuating output. The next milestones for Kapino Polje B2 are environmental clearance, procurement and confirmation of an implementation timetable.
