Montenegro shifted its planned 60 MW / 240 MWh battery energy storage project toward a strategic-partner model in 2026 after the government did not approve borrowing for EPCG’s original procurement. The government established a working group for the strategic project, with the decision taking effect on 17 October 2026. The change is intended to provide a route to financing and project delivery.
The current concept keeps a 60 MW / 240 MWh project as the first phase of a broader partnership. EPCG’s original procurement targeted two battery energy storage system units, each rated at 30 MW / 120 MWh, for installation at Zelezara Niksic in Montenegro.
That procurement was cancelled after the government did not approve the borrowing required to finance it. A later tender for a smaller pilot also attracted no bids, adding to the project’s execution difficulties. The obstacles have been described as financing and delivery challenges, rather than a lack of relevant uses or mature technology.
Under the proposed strategic-partner model, an investor could contribute technology, engineering, procurement and construction execution, along with part of the capital structure. This differs from the original approach, which left EPCG responsible for procuring equipment and raising debt separately. The partnership structure could also provide a clearer route to performance guarantees and long-term operating support, both described as essential for bankability.
Relevant applications in Montenegro include hydropower, rapidly growing solar generation, volatile electricity import requirements and access to regional electricity markets. These use cases form the context for the proposed storage project, while the first phase remains part of a wider partnership concept.
Montenegro’s next BESS tender should be assessed not only on its headline price in EUR per MWh, but also on whether completion, performance and market risks are allocated to parties able to absorb them. The financing model still needs to secure public-sector approval and reach financial close.
