Photo Credit : WAM
Abu Dhabi Future Energy Company, Masdar, and Montenegro’s national power utility Elektroprivreda Crne Gore have moved their renewable energy partnership into the project execution stage, signing agreements for 150 megawatts of solar power and the potential development of more than 400MW of pumped hydro energy storage.
The projects will be developed through a 50-50 joint venture between Masdar and EPCG, following the signing of their joint venture agreement in April 2026.
The partnership aims to develop up to 2 gigawatts of renewable energy capacity across Montenegro. The planned portfolio is expected to support growing domestic electricity demand, strengthen energy security and create opportunities to export renewable power to neighbouring European markets.
Two solar projects move forward
The joint development agreements cover the 115MW Štedim solar photovoltaic project and the 35MW Krupac solar PV project.
Masdar and EPCG also signed a framework for action agreement to assess the joint development of pumped hydro storage projects with a combined capacity exceeding 400MW.
Pumped hydro facilities store electricity during periods of excess supply and release it when demand increases. The technology could help Montenegro integrate a larger share of renewable energy while improving the stability, flexibility and resilience of its power network.
The agreements were signed in Tivat, Montenegro, in the presence of Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, and Admir Šahmanović, Montenegro’s Minister of Energy and Mining.
Signatories included EPCG Chairman Milutin Đukanović, EPCG Chief Executive Officer Zdravko Dragaš and Husain Al Meer, Masdar’s Executive Director of Global Offshore Wind and UK Business.
Partnership supports energy security
Dr. Al Jaber said Europe’s demand for affordable and reliable energy continued to grow, highlighting the need for additional generation capacity.
He said the agreements demonstrated Masdar’s ability to combine international expertise, proven technology and long-term investment in markets with significant growth potential.
“By working with our partners to deliver high-quality energy infrastructure, Masdar is supporting Montenegro’s energy security and creating a strong platform for sustainable economic growth,” he said.
Šahmanović described the agreements as an important step towards turning Montenegro’s renewable energy potential into operational projects.
He said the partnership would introduce investments worth hundreds of millions of euros, support job creation, improve the reliability of electricity supplies and establish conditions for green power to become a major export product for Montenegro.
“We are not only building new energy capacities; we are building a safer, stronger and more competitive Montenegro,” Šahmanović said.
Platform created for long-term growth
Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said the agreements represented a significant development in the company’s partnership with EPCG.
He said Masdar’s international development experience and investment capabilities, combined with EPCG’s local market knowledge and operational expertise, would create a strong platform for long-term expansion.
The partnership is expected to diversify Montenegro’s electricity generation mix, enhance system flexibility and deliver wider economic benefits for the country and the surrounding region.
Al Ramahi identified the Balkans, Southeast Europe and Central Europe as important growth markets for Masdar as the company works towards its target of achieving 100GW of global renewable energy capacity by 2030.
Đukanović said the agreements covering the Krupac and Štedim solar plants, along with the hydroenergy cooperation framework, marked the beginning of a joint generation portfolio that would be expanded through additional investments.
He added that the partnership would strengthen EPCG’s operational capabilities while supporting the development of Montenegro’s modern and sustainable energy sector.
Dragaš said the collaboration had opened a new chapter in EPCG’s green energy investment programme.
“By combining international experience with local expertise, we are creating a solid foundation for the implementation of demanding projects that will contribute to increasing electricity generation from renewable energy sources,” he said.
Renewable power exports to Europe
The Masdar-EPCG joint venture will assess utility-scale developments across solar, wind, hydropower, pumped hydro, battery storage and hybrid energy technologies.
Alongside meeting Montenegro’s domestic electricity requirements, the platform will explore renewable energy exports to the Western Balkans and Southern Europe.
Montenegro’s existing subsea electricity interconnector with Italy could provide access to the wider European power market.
Masdar has operated in Montenegro since 2018 through its investment in the 72MW Krnovo Wind Farm, the country’s largest operational wind energy project.
The company is also expanding its pumped hydro expertise in Europe through TERNA ENERGY, which Masdar acquired in 2025. TERNA ENERGY is developing the 680MW Amfilochia pumped hydro storage project, one of Europe’s largest projects of its kind.
Masdar currently has a global renewable energy portfolio exceeding 65GW, covering solar, onshore and offshore wind, battery storage and hybrid energy solutions across established and emerging markets.
