Montenegro’s state power utility EPCG has completed work on the second of three turbine foundations for the 21 MW Gvozd 2 wind farm. The development is part of an expansion with an investment of nearly €26 million. The project is located on the Krnovo plateau.
Once finished, Gvozd 2 is expected to produce about 63 GWh per year. Together with existing generation from the wider Gvozd complex, the expansion will raise total capacity to 75.6 MW. Expected annual output for the combined complex is more than 200 GWh.
Project development, equipment and financing
EPCG is developing the Gvozd 2 extension with turbine manufacturer Nordex. Financing support for the project comes from the European Bank for Reconstruction and Development. The construction milestone relates to foundation works ahead of later stages.
The construction milestone is described as significant because Montenegro’s electricity system remains heavily dependent on hydropower. During dry periods, lower reservoir output can increase import needs and expose EPCG to higher regional wholesale prices.
Wind generation profile and market timing
The project is positioned as adding a different generation profile compared with other renewables. Unlike solar, which is concentrated around daylight hours, wind can generate during evenings and overnight periods. Regional electricity prices are often higher during those times.
The additional wind capacity is also expected to become more valuable as Southeast Europe adds photovoltaic generation. The first Gvozd development has already contributed non-hydro renewable output to EPCG’s portfolio. Gvozd 2 is intended to deepen that diversification while using an established development area and existing operating experience.
System role and cross-border power flows
The Gvozd 2 project is relatively small compared with multi-hundred-megawatt renewable developments proposed elsewhere in the region, but it remains relevant within Montenegro’s power system. A further 63 GWh of annual generation can reduce imports when hydrological conditions are weak. It can also help EPCG preserve reservoir water for higher-value hours.
The project aligns with Montenegro’s broader approach of combining wind and solar development with hydro flexibility and cross-border trading. Montenegro is connected to neighbouring Balkan systems and Italy via an undersea cable, providing access to multiple markets for electricity. The commercial value of Gvozd 2 depends not only on annual production but also on when generation occurs.
Wind output during regional evening scarcity can be worth substantially more than another megawatt-hour produced during a solar-heavy afternoon. Construction risk remains until turbine installation, electrical works and grid commissioning are completed. However, completing a turbine foundation moves Gvozd 2 further from the development pipeline into physical execution.
Montenegro has built up a large pipeline of proposed renewable projects, but relatively few have reached construction. With that in mind, Gvozd 2 is being treated as another test of whether renewable plans can translate into operating capacity that reduces import and hydrological risk.
