Montenegro is pursuing a proposed 600 MW interconnector with Italy as part of efforts to expand electricity exports and attract investment. The cable, which received Project of Mutual Interest status in April 2026, would double existing electricity-transfer capacity between Montenegro and Italy.
Renewable generation and grid connections are central to the country’s energy transition, which is also an economic question as Montenegro seeks to strengthen its electricity-export role ahead of EU membership. Hydropower supplied about 42% of electricity production in 2025, leaving the system exposed to hydrological conditions. Investor interest in additional renewable projects remains strong.
EPCG began operating the 55 MW Gvozd wind farm in May 2026. The Montenegrin section of the Trans-Balkan electricity corridor, running from Pljevlja to Lastva, entered trial operation in July 2026. Work is also progressing on regional electricity links toward Serbia and Bosnia and Herzegovina.
The Commission called for faster permitting and transmission upgrades to support renewable development and grid capacity. The Italy link is a key export project, while grid reinforcement and efficient use of the connection could help turn electricity into a stronger export product and support industrial investment.
Montenegro is expected to remain dependent on the Pljevlja coal power plant until 2041, following its ecological reconstruction. Its continued operation means coal reliability, renewable investment and EU decarbonisation rules will have to coexist through a long transition period.
The transition’s economic impact will depend on whether renewable capacity produces tradable electricity, reduces system risk and attracts capital into the wider economy. The planned interconnector remains a proposed project, while permitting and transmission upgrades are among the issues identified for faster progress.
