Montenegro’s state power utility EPCG has completed most work on the second of three turbine foundations at its 21 MW Gvozd 2 wind project, advancing a nearly €26 million expansion deeper into construction. The project is located on the Krnovo plateau.
Construction progress and expected output
Gvozd 2 is being developed with turbine manufacturer Nordex, following the first phase of the Gvozd wind complex. Once commissioned, the Krnovo plateau project is expected to generate around 63 GWh per year. The latest milestone relates to the second foundation among three planned turbine foundations.
After the extension is completed, total capacity at the site is expected to reach 75.6 MW. Annual generation from the expanded site is projected to be more than 200 GWh. The expansion is backed by financing from the European Bank for Reconstruction and Development.
Role in Montenegro’s renewable build-out and system balance
The foundation milestone comes as Montenegro’s renewable pipeline is larger than the volume that has reached physical construction. Solar, wind and storage projects have multiplied, while grid access, permitting, financing and construction remain key points where development risk is concentrated. In that context, Gvozd 2 has moved beyond earlier development stages.
EPCG’s portfolio remains heavily dependent on hydropower, and that exposure links earnings and import requirements to rainfall and reservoir levels. Adding wind output introduces a different production profile that can reduce reliance on hydrological conditions, while also bringing variability. The value of Gvozd 2 depends not only on annual generation but also on when electricity is produced.
Market timing and regional trading links
Wind output can be particularly relevant when it coincides with periods of weak solar production or high regional prices. Montenegro also has hydro flexibility, enabling reservoirs to complement variable wind generation more effectively than systems dominated by inflexible generation. This interaction can create portfolio value beyond the individual project’s output.
The expansion aligns with EPCG’s wider renewable investment pipeline, which includes solar projects and additional wind capacity. Montenegro is also increasingly connected to regional trading conditions through its domestic network and the subsea electricity interconnector with Italy.
With Gvozd 2 at 21 MW, the project remains smaller than multi-hundred-megawatt renewables proposed elsewhere in Southeast Europe. However, it represents capacity moving through construction rather than staying in the development pipeline. For Montenegro’s electricity balance, completing projects like Gvozd 2 is becoming more important than announcing new ones.
