Montenegro’s electricity imports in 2025 increased to 1,341 GWh, with state-owned utility EPCG spending approximately €142 million on market purchases. The higher import level was driven by the combined impact of the prolonged outage at TPP Pljevlja, weaker hydrological conditions and electricity demand exceeding forecasts.
TPP Pljevlja outage drives the largest replacement need
TPP Pljevlja remained offline for more than eight months due to environmental modernisation works. The plant normally provides around 40% of Montenegro’s annual electricity demand, and its absence created the biggest pressure on the system. EPCG replaced approximately 780 GWh of lost generation through electricity imports during the year.
The scale of the generation shortfall increased exposure to regional market prices for a small power system. With thermal output unavailable, EPCG relied on purchases to cover the missing supply. This shift in sourcing aligned with the broader pattern of higher import volumes recorded in 2025.
Hydro output shortfalls and higher demand lift additional imports
Weaker hydrological conditions added further requirements for market procurement. EPCG secured another 320 GWh from the market after lower-than-expected hydro production.
HPP Perucica, with installed capacity of 307 MW, produced around 64% of planned output. HPP Piva, with capacity of 342 MW, achieved approximately 75% of its target. Electricity consumption reached 2,909 GWh, about 4% above forecast, adding an extra 73 GWh to import needs.
EPCG losses in 2025 and earnings rebound in 2026
The financial impact was reflected in EPCG’s results for 2025. The company recorded a €92 million net loss, compared with an €11 million profit in 2024.
EPCG’s improved performance in 2026 was linked to domestic generation availability. In the first quarter of 2026, EPCG reported profit of €36.5 million, versus €10.2 million a year earlier. Management expects full-year earnings of around €38 million, with projections reaching approximately €143 million by 2030.
Grid projects and generation upgrades targeted at reducing import volatility
The key issue for Montenegro is structural dependence rather than a single temporary disruption. The country has renewable energy potential and transmission connections with Bosnia and Herzegovina, Serbia, Albania and Italy, but its electricity balance remains reliant on a limited set of large assets, particularly TPP Pljevlja and two major hydropower plants.
The transmission operator CGES is advancing infrastructure intended to support new renewable capacity and cross-border flows. A programme covering Perucica and Pljevlja substation modernisation has a value of €39 million, with potential to enable connection of around 550 MW. Another project involves cross-border transmission upgrade using high-temperature low-sag conductors, expected to raise capacity along the Trebinje–Perucica–Podgorica–Vau i Dejes corridor to approximately 600 MW.
EPCG expands wind and hydropower capacity alongside CGES works
EPCG’s investment plan includes both generation additions and upgrades at existing assets. The company is expanding the Gvozd wind farm through a 21 MW second phase supported by a €25 million EBRD loan.
EPCG is also investing around €40 million in the A8 unit at HPP Perucica, adding 58.5 MW. These measures are intended to reduce concentration risk associated with outages affecting domestic supply while maintaining reliance on regional markets during periods when generation is constrained.
