Construction of Gvozd 2 is advancing as Montenegro expands its renewable-energy capacity, with Elektroprivreda Crne Gore (EPCG) reporting that work was nearing completion on the second of three turbine foundations in early September. The extension comprises three wind turbines with a combined capacity of 21 MW and estimated annual production of 63 GWh, according to EPCG’s March announcement of its agreement with Nordex. The investment was valued at approximately €26 million.
The European Bank for Reconstruction and Development (EBRD) announced an additional €26 million loan for the Gvozd expansion in August 2025, following an original €82 million loan signed in 2023. These financing amounts are separate from the turbine-contract figure and should not be treated as additional projects.
Construction progress and operational requirements
The foundation work provides a concrete indication of construction progress, but does not establish that the extension has entered commercial operation. The project still has to pass through turbine installation, electrical completion, testing, grid-connection requirements and acceptance before generation can become operational revenue.
For a financed power project, delays can postpone revenue while construction management continues and certain costs potentially increase. The financial impact depends on how risks are allocated under the contracts and what remedies are available. Project progress therefore needs to be measured against the activities that are critical for operation rather than solely by the visible presence or completion of physical infrastructure. A wind project can appear substantially advanced while unresolved electrical, control or testing issues prevent usable generation.
Contract interfaces and project delivery
Responsibility among equipment suppliers, civil contractors, EPCG and network counterparties is important where several contracts are required to complete the plant.
Clear ownership of interfaces can prevent disputes over defects or delays that could otherwise leave the project unable to operate normally. The timing of commercial operation depends on the successful completion and coordination of these activities.
Generation output and electricity revenue
Once the turbines begin producing electricity, the estimated annual output will not by itself determine project revenue. Electricity prices vary according to when generation occurs. Wind-project earnings depend on the timing of production, how electricity is sold, applicable balancing arrangements and any operating restrictions.
Using forecast generation and a single average electricity price can therefore produce either an overestimate or an underestimate of actual income. A fuller assessment considers the project’s production profile, sales structure and generator costs, together with scenarios involving weaker wind conditions or lower electricity prices during periods of high wind generation.
The projected 63 GWh remains an estimate of annual production rather than guaranteed output or a fixed revenue stream. For EPCG, the expansion also adds to its generation portfolio. The financial result will depend on how the additional wind production interacts with the company’s other generation and supply obligations.
Renewable generation creates operational requirements
At system level, additional renewable capacity requires coordination of forecasting, metering, communications and maintenance to support reliable operation and accurate scheduling of output. This creates opportunities for specialised service providers in areas including inspection, electrical maintenance, condition monitoring and technical support.
Domestic companies can participate where they have the necessary training, equipment and contractual authorisation. The existence of a wind farm does not automatically create local capacity for every specialised service. Long-term maintenance agreements also need to account for availability commitments, response times, spare-parts access and exclusions, as the headline service fee represents only part of the overall cost structure.
The investment case combines project execution with electricity-market performance. The plant must be completed correctly, remain available for generation and sell its output on terms that support its operating and financing obligations. Gvozd 2 adds 21 MW of planned wind capacity to Montenegro’s renewable portfolio, with its economic contribution becoming measurable once the turbines generate electricity, the output is delivered and resulting revenue covers the costs of operation.
