Montenegro shifted its battery energy storage policy in 2026 toward a strategic-partner model for a 60 MW / 240 MWh project, after the government did not approve the borrowing required for EPCG’s original procurement. The government’s decision establishing a working group for the strategic project entered into force on 17 October 2026. The policy change moves away from conventional utility procurement toward a model intended to support financing and delivery.
EPCG’s original procurement targeted two units of 30 MW / 120 MWh each at Zelezara Niksic in Montenegro. The government did not approve the borrowing needed to finance the procurement, and it was cancelled. The current strategic-partnership concept retains the same combined capacity as the first phase of a broader partnership.
A later tender for a smaller pilot also failed to attract bids, adding to the execution difficulties. The challenge is described as one of financing and delivery, rather than a lack of potential applications or mature technology. Relevant use cases include hydropower, rapidly growing solar generation, volatile electricity import requirements and access to regional electricity markets.
Under the proposed model, an investor could contribute technology, engineering, procurement and construction execution, as well as part of the capital structure. That would differ from EPCG procuring equipment and raising debt separately. The partnership structure could also provide a clearer route to performance guarantees and long-term operating support, both described as essential for bankability.
Any next BESS tender would need to be assessed not only by its headline EUR per MWh price, but also by how completion, performance and market risks are allocated to parties able to absorb them. The stated financing requirement is a model that can secure public-sector approval and reach financial close, rather than another demonstration of battery technology.
