Elektroprivreda Crne Gore (EPCG) recorded €36.5 million in net profit in the first quarter, an increase of approximately 257 per cent year on year, supported by stronger electricity generation and the contribution of the Pljevlja thermal power plant. The result provides EPCG with additional internal capital for renewable-energy investment. Its earnings remain exposed to hydrological conditions, coal-plant availability, regional wholesale electricity prices and the costs of maintaining Pljevlja under tightening environmental standards.
EPCG and Masdar, owned by Abu Dhabi, are continuing discussions on a joint venture covering wind, solar, hydropower, battery storage and hybrid projects. The proposed combination of technologies includes the possibility of contracted exports through Montenegro’s subsea interconnector with Italy. Solar-only development would face greater exposure to midday price cannibalisation and grid constraints.
Transmission infrastructure is also receiving development-bank financing. France’s AFD has provided a €25 million sovereign-guaranteed loan to Crnogorski elektroprenosni sistem (CGES), alongside an expected €8.5 million EU grant, for reconstruction of the Perućica and Pljevlja 2 substations. The Perućica facility is being designed to accommodate up to 350 MW of hydropower capacity, while the Pljevlja 2 substation will reinforce the northern transmission system.
Fuel supplier Jugopetrol recorded approximately €9.5 million in net profit during the first half, supported by road-fuel demand, aviation supply and the recovery of the yacht market. The company’s activities provide exposure to several parts of Montenegro’s mobility economy, including conventional tourism traffic, expanding airport activity and high-value maritime customers.
Fuel-sector profitability remains affected by regulated pricing formulas, inventory timing and international petroleum-product margins. Over a longer period, electrification presents a risk to road-fuel volumes, while airport growth and tax-free yacht bunkering are providing nearer-term demand support. Montenegro is receiving institutional financing across several areas, including the International Finance Corporation’s US$80 million investment in Porto Montenegro, the European Investment Bank’s programme exceeding €250 million, the EBRD-backed motorway project and the AFD-supported transmission substations. At the same time, the government faces an approximately €1.17 billion refinancing requirement in 2027. The financing environment places greater importance on productive infrastructure, export earnings and disciplined project execution alongside investment in coastal real estate.
