Abu Dhabi Future Energy Company PJSC – Masdar, a global clean energy leader, and Elektroprivreda Crne Gore (EPCG), Montenegro’s national power utility, have advanced their strategic partnership into the project implementation phase by signing agreements covering 150 megawatts (MW) of solar capacity and the potential development of more than 400 MW of pumped-storage hydropower capacity.
The agreements represent the first projects to be implemented through the joint venture owned by Masdar and EPCG. The joint venture aims to develop up to 2 gigawatts (GW) of renewable energy capacity in Montenegro, creating a platform to meet growing domestic electricity demand, strengthen the country’s energy security and support future electricity exports to neighbouring European markets.
First projects within Montenegro’s 2 GW portfolio
The joint development agreements cover the 140 MWp Štedim and 50 MWp Krupac solar photovoltaic projects. Masdar and EPCG also signed a framework cooperation agreement to explore the joint development of pumped-storage hydropower projects with a combined capacity exceeding 400 MW.
By storing electricity when generation exceeds demand and releasing it into the grid when needed, pumped-storage hydropower plants could enable Montenegro to integrate a greater share of renewable energy while improving the flexibility, stability and resilience of its power system.
In the presence of His Excellency Dr Sultan Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of Masdar, and Montenegro’s Minister of Energy and Mining, Admir Šahmanović, the agreements were signed by Milutin Đukanović, Chairman of the EPCG Board of Directors; Zdravko Dragaš, Chief Executive Officer of EPCG; and Husain Al Meer, Chief Executive Officer for Global Offshore Wind and UK Operations at Masdar.
In April, Masdar and EPCG announced the establishment of a 50:50-owned joint venture aimed at developing large-scale projects across a range of technologies, including solar power, wind power, hydropower, pumped-storage hydropower, battery energy storage and hybrid energy solutions.
The partnership aims to develop up to 2 gigawatts (GW) of renewable energy capacity in Montenegro to support the country’s domestic energy needs while enabling renewable electricity exports to the Western Balkans and Southern European markets, including through the existing subsea electricity interconnector with Italy.
Following the signing ceremony, Milutin Đukanović, Chairman of the EPCG Board of Directors, commented on the importance of developing projects with Masdar:
“Cooperation with Masdar represents an important step towards achieving our vision of a modern and sustainable energy sector. By establishing the joint venture, we are creating the conditions for the implementation of new renewable energy projects while strengthening our professional capabilities and improving EPCG’s operations.
“The signed joint development agreements for the Krupac and Štedim solar power plants, together with the hydropower cooperation agreement, mark the beginning of the creation of a joint EPCG–Masdar generation portfolio, which will continue to be developed and expanded in the coming period.
“We are confident that this cooperation model will deliver both short-term and long-term value to the company and Montenegro.”
Highlighting the importance of EPCG’s development in terms of investment and international cooperation, EPCG Chief Executive Officer Zdravko Dragaš said:
“The partnership with Masdar opens a new chapter in EPCG’s development and in our green energy investment plans. By combining international experience with domestic expertise, we are creating a strong foundation for the implementation of complex projects that will contribute to increasing renewable energy generation.
“Today’s signing of three agreements lays the foundations for long-term cooperation through the joint development of projects and the creation of a generation portfolio that will continue to expand through new investments in the years ahead.
“We expect this cooperation to further strengthen the energy transition process, improve the company’s competitiveness and create new opportunities for the development of Montenegro’s economy.”
His Excellency Dr Sultan Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of Masdar, who attended the signing ceremony, said:
“Demand for reliable and affordable energy in Europe is growing, and the need for new capacity has never been greater. Today’s agreements reflect Masdar’s ability to bring global expertise, proven technologies and long-term investment to markets with strong growth potential. They also represent an important step in deepening relations between the UAE and Montenegro. By working with our partners to build high-quality energy infrastructure, Masdar is supporting Montenegro’s energy security and creating a strong foundation for sustainable economic growth.”
“For years, we have spoken about Montenegro’s exceptional renewable energy potential. Today, we can say that we have created the conditions for that potential to be transformed into concrete projects. Just three months after establishing the joint company, we are moving into the implementation phase of the first projects. This is the clearest confirmation of the seriousness of this partnership and the confidence that one of the world’s leading clean energy companies has placed in Montenegro,” said Montenegro’s Minister of Energy and Mining, Admir Šahmanović.
He added:
“Through this partnership, we are not merely building new energy capacity; we are building a safer, stronger and more competitive Montenegro. We are launching investments worth hundreds of millions of euros that will strengthen our energy security, create new jobs and development opportunities for our citizens, provide a more stable electricity supply for the economy and create the conditions for green energy to become one of Montenegro’s most important export products.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:
“These agreements represent an important step for Masdar in Montenegro and significant progress in our partnership with EPCG. By combining Masdar’s global development expertise, investment capabilities and experience in delivering large-scale renewable energy projects with EPCG’s market leadership and deep knowledge of the local environment, we are creating a strong platform for long-term growth.
“Together, we aim to diversify Montenegro’s generation mix, strengthen energy security, improve system stability and flexibility, and create broader economic value for the country and the region.
“The Balkans, Southeast Europe and Central Europe are important growth markets for Masdar as we advance towards our target of 100 GW of global renewable energy capacity by 2030. We look forward to deepening our cooperation with EPCG and the Government of Montenegro to deliver projects of major importance, support Montenegro’s development ambitions and further strengthen its position as a regional energy leader,” Al Ramahi concluded.
Source: EPCG
