Montenegro’s planned Korita wind farm has secured a transmission connection agreement with national electricity transmission operator CGES for an 88 MW facility valued at €132 million, but the project must resolve outstanding construction-permit issues before advancing toward implementation.
The Ministry of Spatial Planning, Urbanism and State Property rejected the construction permit application submitted by Vjetro park Korita DOO for the first phase of the wind farm in the municipality of Bijelo Polje on 18 June 2026. The decision was signed by Minister Slaven Radunović. Five days later, on 23 June 2026, CGES announced that it had signed an agreement with the same developer to connect the planned 88 MW wind farm to Montenegro’s transmission network.
The agreement represents a significant development milestone for the project, but it does not constitute approval to begin construction. The developer must still complete the construction-permit process through a revised application or administrative proceedings before Montenegro’s Administrative Court.
Permit application rejected before grid agreement was signed
Vjetro park Korita DOO submitted its original construction permit application at the end of December 2025, with additional documentation provided in January and March 2026. The request covered the first phase of the wind farm on land located within the Korita cadastral municipality. The submitted documentation included the main design, a design-review report, property records, an extract from the digital cadastral plan, as well as approvals and opinions from relevant public institutions.
The application also contained a decision from the Environmental Protection Agency of Montenegro approving the environmental impact assessment for a wind facility with a total installed capacity of 72.60 MW. The ministry concluded that the application did not meet the legal requirements because CGES had not approved the main design. During the administrative procedure, CGES informed the ministry that it could not issue consent for the project’s infrastructure complex and planned 35/400 kV substation because the investor had not yet signed the transmission-network connection agreement. That agreement was signed only five days after the permit rejection.
Capacity increase created additional documentation requirements
The project’s technical parameters changed during development. CGES had previously completed a connection analysis for 72.60 MW, matching the capacity covered by the environmental approval. In November 2025, however, the developer requested a new analysis after deciding to increase the planned capacity to 88 MW. The revised configuration represents an increase of 15.40 MW, or approximately 21.2%, compared with the earlier project design.
CGES stated that the updated connection analysis was still being prepared during the construction-permit procedure, preventing approval of the submitted technical documents. The difference between the 88 MW grid connection agreement and the 72.60 MW environmental approval now represents an issue that must be addressed during the renewed permitting process. The developer will need to align the environmental assessment, spatial documentation, turbine layout, access roads, internal cable system, substation design and grid studies with the larger project configuration or obtain additional approvals where required.
Grid connection requires detailed compliance studies
The planned 35/400 kV substation indicates that Korita is designed for direct connection to Montenegro’s high-voltage transmission system.
The project requires detailed grid-compliance documentation covering:
- Voltage control
- Frequency response
- Fault ride-through capability
- Active-power regulation
- Protection coordination
- SCADA communication with CGES
The connection agreement removes one major obstacle identified during the permit procedure, but it does not automatically resolve all regulatory and technical requirements.
€132 million investment requires financing certainty
With an estimated investment value of €132 million, Korita represents one of Montenegro’s major renewable-energy projects. The estimated investment intensity amounts to approximately €1.5 million per installed megawatt. A potential financing structure could involve 65–75% senior debt, representing approximately €86 million to €99 million, while the remaining investment would be covered through equity and subordinated capital.
The final financing structure will depend on factors including:
- Wind-resource assessment
- Revenue arrangements
- Market-price exposure
- Construction risks
- Grid-connection certainty
The project’s mountainous location, road construction requirements, turbine transport, geotechnical conditions and high-voltage connection infrastructure could increase costs beyond the initial estimate. Additional expenses could also arise from interest during construction, extended development activities, updated studies and delays affecting financial close or the start of construction.
Permit delays could affect 2030 commissioning target
A delay of 12 to 18 months could increase the project’s financing requirements through additional development costs, extended supplier commitments and higher interest expenses. Such delays could also expose the project to changes in turbine prices, grid-code requirements and market conditions before the planned 2030 commissioning date.
The ministry had already raised concerns before rejecting the permit application. On 24 March 2026, the ministry informed Vjetro park Korita about the results of its administrative review and its intention to reject the application. The company was given five days to submit written observations but did not provide a response during that period. The lack of a response meant the developer did not provide additional explanations regarding the pending CGES procedure, the updated connection analysis or the expected timing of the connection agreement.
Renewed application must integrate all project approvals
The newly signed CGES connection agreement creates a stronger basis for a renewed construction-permit application, provided that the updated technical documentation receives the required approvals.
The developer must ensure consistency between all project documents, including the:
- Environmental approval
- Grid connection agreement
- Main design
- Design review
- Property documentation
- Construction application
The ministry’s rejection does not prevent the Korita wind farm from being developed, but it shows that the construction application was submitted before the revised capacity and grid-connection process had been fully incorporated into the project documentation. The next permitting stage will require the 88 MW wind farm configuration to be presented as a single, fully coordinated investment project before construction can proceed.
