Montenegro shifted in 2026 toward a strategic-partner model for a planned 60 MW / 240 MWh battery energy storage system (BESS), after a borrowing-funded procurement by EPCG was cancelled and a pilot tender attracted no bids. A government decision establishing a working group for the strategic project was published in October 2026 and entered into force on 17 October 2026.
EPCG’s original procurement called for two BESS units, each rated at 30 MW / 120 MWh, at Zelezara Niksic. The government did not approve the borrowing required to finance the project, and the procurement was cancelled. A later small pilot tender also failed to attract bids, adding to the obstacles to delivering the project through conventional utility procurement.
Under the strategic-partner concept, the same 60 MW / 240 MWh project would be the first phase of a broader partnership. An investor could provide technology, engineering, procurement and construction (EPC) execution and part of the capital structure, instead of leaving EPCG to procure equipment and raise debt separately.
The model could also provide a clearer route to performance guarantees and long-term operating support, which are important for bankability. Montenegro’s storage case is supported by its hydropower, rapidly growing solar generation, volatile electricity-import requirements and access to regional electricity markets. The challenge is framed as financing and delivery structure, rather than a lack of use cases or mature technology.
The next BESS tender should be assessed by whether it allocates completion, performance and market risks to parties able to absorb them, not mainly by headline EUR per MWh. Financing and risk allocation remain central: the technology is mature, while the remaining task is to establish a financing model that can secure public-sector approval and reach financial close.
