Montenegro has reduced its electricity-import bill to less than €42 million so far in 2026, after spending almost €182 million during last year’s prolonged Pljevlja overhaul. Energy Minister Admir Šahmanović said the national electricity balance is moving back towards equilibrium as domestic generation recovers. The improvement follows the return of the Pljevlja thermal plant and stronger availability across other domestic generation assets.
Montenegro’s import exposure increased sharply when Pljevlja underwent a roughly nine-month ecological reconstruction. During that period, the country was forced to buy large volumes from neighbouring markets. The latest figures indicate that domestic generation remains valuable during periods of regional price volatility. Reducing imports by more than €100 million compared with the overhaul period materially improves the power-sector cash position.
Planned second Italy submarine interconnector and export capacity needs
A longer-term element of Montenegro’s power-market outlook is the plan to develop a second strand of the submarine electricity interconnector with Italy. Officials say agreement has been reached to proceed with the additional link, which would effectively double the corridor’s transmission capability. This expansion is expected to become increasingly important as Montenegro’s renewable pipeline grows.
CGES has disclosed connection contracts covering around 3 GW of projects, dominated by solar, beyond what Montenegro’s small domestic electricity market can consume. If a meaningful share of those projects reaches operation, Montenegro will need export capacity. The Italian interconnector provides direct access to one of Europe’s largest electricity markets.
A second cable could therefore support renewable-project bankability, but transmission alone does not ensure attractive export revenues. Montenegro’s solar generation will often peak at the same time as renewable output in Albania, Greece, Serbia and Italy. That timing can create a risk that large volumes reach the market when prices are weakest.
Storage and hydropower optimisation are therefore highlighted as essential for managing output profiles. Montenegro’s existing hydro fleet provides an operational advantage because water can be conserved when solar production is strong and released during higher-value hours.
Petroleum stocks and permitting for wind and solar projects
The government also reported progress on energy-security reserves, saying mandatory petroleum stocks have reached around 40% of the target required for a 90-day emergency reserve. Authorities have also issued 65 urban-technical conditions for wind and solar projects, reinforcing the scale of the renewable pipeline.
The immediate market focus remains on Montenegro’s electricity balance after the Pljevlja outage period. Montenegro moved from a phase in which the outage forced nearly €182 million of imports to one in which the bill has remained below €42 million. With new renewable projects, storage and the second Italy cable progressing together, Montenegro’s next challenge will be managing growing electricity surpluses rather than financing expensive imports.
