Montenegro is on the verge of launching its first state-owned renewable energy facility in over forty years, with the Gvozd wind farm, located near Krnovo, expected to begin electricity production by the end of March, ahead of its initial timeline. This development marks a significant milestone in the country’s efforts to enhance its renewable energy capacity and energy security.
Project manager Nikola Vukotić indicated that the wind farm will initially enter a trial operation phase. During this period, which is anticipated to last one to two months, electricity generation will be limited as turbine testing is conducted. Following this phase, production is projected to gradually increase, aiming to reach target output levels by the second or third month of operation.
The Gvozd wind farm is designed to generate approximately 150 GWh of electricity annually, sufficient to power around 25,000 households. However, actual production may fluctuate seasonally based on prevailing wind conditions. Notably, a significant portion of the expected output is anticipated by 2026, indicating a quicker-than-expected operational ramp-up. The early commissioning of Gvozd 1 also lays the groundwork for a subsequent project, referred to as Gvozd 2. Upon securing its operating permit, Gvozd 1 will transition into full commercial service under Montenegro’s state-owned utility, EPCG.
The financing for this initiative was secured through an €82 million loan agreement with the European Bank for Reconstruction and Development (EBRD), finalized in June 2023. This agreement represents EBRD’s largest direct investment in Montenegro’s energy sector to date. Stakeholders view the second phase of development as a natural extension of their collaboration and a vital step towards furthering decarbonization and diversifying the national energy portfolio.
The foundation stone for the Gvozd wind farm was laid in November 2024. With its impending commissioning, the facility is projected to bolster Montenegro’s energy security, reducing dependence on long-term electricity imports.
