Montenegro’s renewable energy sector is entering a new phase of development, supported by a pipeline of wind, solar and energy storage projects. The Ministry of Energy, with support from the European Bank for Reconstruction and Development (EBRD), is redesigning the tender framework after the inaugural 250 MW solar auction failed to produce projects that met legal and technical standards. The submitted bids did not satisfy requirements linked primarily to documentation, spatial planning compliance and grid connection needs rather than market interest.
Redesigned solar tender framework and 2026-2028 auction plan
The revised auction mechanism is positioned as a central element of Montenegro’s renewable strategy. Under the government programme for 2026-2028, authorities plan to tender 450 MW of new renewable capacity, made up of 250 MW solar and 200 MW wind power. Successful developers are set to receive 12-year two-way Contracts for Difference (CfDs). The programme’s long-term implementation is expected to depend on verification of land ownership, permitting status and grid connection readiness before projects enter auctions.
Wind projects progress with permitting and grid steps
Outside the auction programme, Wind Europe MNE has started an environmental impact assessment process for the 92.4 MW Njegovudja wind farm near Zabljak. The project includes 14 turbines, each rated at 6.6 MW, and it also involves a new 110 kV transmission connection. Separately, the 88 MW Korita wind project near Bijelo Polje has secured a grid connection agreement with CGES. Commercial operations are planned for 2030, with investment expected at approximately EUR 132 million.
Korita previously faced delays after construction permits were denied due to the absence of a grid connection agreement. The sequence issue highlighted how regulatory timing can affect project development in practice. For Njegovudja, the next step indicated in the process is the environmental impact assessment work.
EPCG-Masdar joint venture expands solar and pumped storage studies
A joint venture between EPCG and Masdar was established on a 50:50 basis to develop up to 2 GW of renewable generation and energy storage capacity. The first package includes the 140 MW Stedim solar project and the 50 MW Krupac solar plant. It also covers feasibility studies for more than 400 MW of pumped-storage hydropower. Storage integration is described as supporting balancing of solar output, reducing curtailment during high production periods and enabling shifting electricity to higher-value market times.
The storage component is also linked to exports through Montenegro’s electricity interconnection with Italy. In parallel, the pipeline described for EPCG-Masdar focuses on combining generation with storage rather than treating each asset as an isolated grid connection.
Qair secures Rudine permit; CGES upgrades substations for renewables
French renewable developer Qair has secured a construction permit for the 50 MW Rudine solar power plant near Niksic. The plant is expected to generate approximately 73 GWh annually. Qair reports an additional 250 MW of projects that have obtained planning and technical approvals, while a further 70 MW remains in the permitting process. The company’s cooperation with EPCG provides an additional route for renewables development outside Montenegro’s government auction framework.
Transmission system operator CGES has secured a loan from the French Development Agency (AFD) to modernise key substations supporting future renewable integration. The financing totals EUR 25 million, backed by a state guarantee, for upgrades to the 220/110 kV Perucica substation and improvements to the 400/220/110 kV Pljevlja 2 substation. An additional EUR 8.5 million grant from the European Union is expected for the same investment.
The Perucica upgrade is intended to facilitate integration of up to 350 MW of hydropower. Improvements at Pljevlja 2 are described as strengthening Montenegro’s position within the Trans-Balkan Electricity Corridor while supporting a gradual transition away from coal-fired electricity generation.
Differentiated wind and solar output affects system needs
The expansion plans also involve differences between wind and solar generation profiles from both technical and commercial perspectives. Projects such as Njegovudja and Korita are expected to deliver higher capacity factors and produce a greater share of electricity during winter months and overnight periods. Solar projects are described as generally quicker and less expensive to construct but more exposed to declining wholesale prices during periods of abundant midday generation.
Financing decisions are expected to increasingly rely on assessments covering transmission constraints, curtailment risks, connection timelines, balancing costs and future grid reinforcement requirements rather than assumptions about electricity prices or unrestricted network access.
The source facts also indicate that Montenegro’s longer-term renewable mix would rely on coordinated operation across wind, solar, hydropower, pumped storage and battery energy storage systems within a transmission and dispatch framework rather than treating each renewable project as an independent grid connection.
