Montenegro’s energy investment pipeline is expanding across solar, wind, hydropower flexibility and battery storage, with EPCG advancing projects that add generation capacity while increasing the flexibility of the electricity system.
EPCG has already developed substantial distributed solar capacity through its Solari programmes. The Solari 3000+/500+ programme totals around 34.34 MWp, while the completed part of Solari 5000+ adds approximately 54.72 MWp.
Wind generation is also part of the investment programme. The Gvozd I wind project has a planned capacity of approximately 54.6 MW. At the Perućica hydropower plant, the planned A8 generation unit would provide an additional 58.5 MW and increase the utilisation and operational flexibility of existing hydropower infrastructure.
Battery storage is another major component of the investment pipeline. A planned energy storage system at Željezara is designed with approximately 60 MW/240 MWh of capacity and an indicated investment cost of around €48 million.
The storage project is intended to address the mismatch between electricity generation and consumption that becomes more significant as solar and wind capacity increases.
A four-hour battery system can transfer electricity generated during periods of excess supply to periods of higher demand, while also reducing curtailment and providing balancing services. For EPCG, storage can therefore create additional revenue opportunities beyond direct electricity sales. Solar and wind projects have different operating characteristics. Solar installations can be deployed more quickly and benefit from declining technology costs, but their production is concentrated during daylight hours. As solar penetration increases, this increases the role of storage.
Wind generation has a different production profile, with output generally less concentrated around midday and potentially different seasonal characteristics. Its system value can therefore differ from solar, even when capital expenditure per installed megawatt is higher. Hydropower remains Montenegro’s main flexible renewable resource, although greater climate volatility makes heavy dependence on hydrological conditions more exposed to risk.
Battery storage can complement that hydropower flexibility rather than replace it. Alongside EPCG’s projects, the Government is revising the regulatory framework governing renewable energy auctions. The changes could open another investment cycle for private developers and broaden new generation development beyond an EPCG-dominated model to include independent power producers.
Montenegro has hydro flexibility, strong solar irradiation, wind resources, interconnection capacity and increasing storage as components of its developing electricity system. Grid integration remains a key requirement as generation capacity expands. Without corresponding reinforcement of transmission and distribution networks, congestion and curtailment can emerge before planned renewable capacity targets are fully reached. The country’s next energy investment cycle will therefore include grid infrastructure and storage alongside new renewable generation capacity.
