Government working group for battery partner process
Montenegro has started preparations to select a strategic partner for a large-scale battery energy storage project to support the rapid expansion of solar and other renewable generation. The Government has authorized a working group to oversee the partner-selection process. Details on the planned storage capacity, investment value and tender timetable have not been disclosed.
EPCG partnerships include PowerX and Masdar
The initiative aligns with activities by state-owned utility EPCG to expand Montenegro’s energy-storage capabilities. In May, EPCG signed a memorandum with Japanese battery manufacturer PowerX covering cooperation on approximately 500 MWh of storage during an initial three-year period. PowerX is also considering establishing battery-system assembly operations in Montenegro.
EPCG has also entered into agreements with Abu Dhabi-based Masdar covering renewable energy and storage projects. The agreements point to a growing focus on flexibility infrastructure as Montenegro expands its clean-energy portfolio.
Previous procurement cancelled; solar growth drives flexibility needs
The strategic-partner effort follows an earlier large-scale procurement that did not proceed. EPCG cancelled a EUR 58 million tender in 2025 for two battery systems with a combined capacity of 30 MW/120 MWh, after the Government declined to approve the loan needed to finance the project. Smaller battery procurements have continued since then.
Storage requirements are expected to rise as Montenegro adds more solar capacity. The country’s 2026 energy balance projects installed solar capacity reaching 215 MW by the end of the year, while annual solar generation is forecast to increase from 76 GWh in 2025 to 198 GWh in 2026.
The forecast increase in photovoltaic output is expected to raise needs for flexibility, balancing and shifting electricity production from high daytime solar periods to hours when demand is higher. Large-scale batteries are also expected to support integration of renewable capacity more efficiently and reduce pressure on the electricity system during periods of rapidly changing generation.
Partner selection parameters not yet published
For EPCG and the Government, choosing a strategic partner could be a step toward establishing larger-scale storage infrastructure. The eventual project scale, financing structure and commercial model will determine how significant it becomes for Montenegro’s wider energy transition.
