Montenegro’s electricity import bill has dropped to less than €42 million in 2026, compared with almost €182 million in 2025, as domestic generation recovered following the prolonged reconstruction of the Pljevlja thermal power plant. Energy Minister said the reduction reflects a stronger domestic electricity balance after Montenegro relied heavily on imports last year. The difference amounts to roughly €140 million.
Pljevlja Recovery Cuts Import Exposure
The Pljevlja plant was unavailable for an extended period in 2025 during reconstruction and environmental works, requiring state power utility EPCG to purchase more electricity on regional markets. This increased the utility’s exposure to wholesale electricity prices and cross-border availability, while hydrological conditions also affected Montenegro’s hydro-based generation.
With Pljevlja operating again, electricity purchases from abroad have fallen sharply, reducing EPCG’s import costs and the pressure that expensive wholesale purchases can place on its balance sheet. Electricity imports also affect Montenegro’s trade balance because power purchases can become a significant and volatile import item. Montenegro continues to rely on coal, hydropower and electricity imports, with domestic output influenced by rainfall, generating-unit availability and market conditions.
Government Expands Renewable Project Pipeline
The government is seeking to accelerate renewable energy development. 65 urban-technical conditions have been issued for solar and wind projects, while around 10 large projects are considered realistically capable of progressing toward implementation. Grid capacity remains a key constraint for new renewable generation. Wind and solar projects require adequate transmission and balancing capacity, increasing the importance of investments involving CGES, battery storage and cross-border connections.
The government has also reiterated plans for a second subsea electricity cable between Montenegro and Italy. The existing interconnector provides access to the Italian electricity market and forms part of the wider Balkan electricity corridor. A second connection would increase Montenegro’s capacity for regional electricity trading if supported by additional renewable generation and stronger domestic transmission infrastructure.
Energy Security Measures Continue
Montenegro needs sufficient reliable generation and system flexibility to limit dependence on imports. Hydropower remains a major source of variability because dry periods can reduce production, while wind and solar provide additional renewable capacity but also fluctuate with weather conditions. The government is also developing mandatory oil-product reserves. Šahmanović said around 40% of the required target has been accumulated, with the completed reserve system intended to provide 90 days of supply. Household electricity prices are currently expected to remain unchanged, according to the minister.
Pljevlja Transition Includes €50 Million Programme
At the same time, Montenegro is preparing the longer-term energy transition in Pljevlja. A €50 million World Bank-supported district-heating programme is intended to reduce pollution and support the municipality’s gradual transition away from dependence on the coal complex. The current electricity balance illustrates the challenge facing that transition. Montenegro relied on close to €182 million of electricity imports in 2025 while Pljevlja was largely unavailable, whereas the bill has fallen to less than €42 million in 2026 as domestic supply recovered. The government’s energy strategy therefore involves developing replacement generation, storage, transmission and system flexibility as Montenegro prepares for the eventual decline of the Pljevlja plant’s role.
