Montenegro’s state power company, Elektroprivreda Crne Gore (EPCG), recently signed a €25 million loan agreement with the European Bank for Reconstruction and Development (EBRD) to fund the second phase of the Gvozd wind farm expansion. The project will add 21 MW of installed capacity, bringing the total capacity to 75.6 MW. Upon completion, it will be the largest wind farm in Montenegro’s history, generating over 210 GWh of electricity annually, enough to meet the electricity needs of 36,000 households and reducing CO2 emissions by 137,000 tons annually—equivalent to removing 29,000 gasoline-powered vehicles from the road for an entire year.
Gvozd receives further capital investment
Montenegro’s current energy mix remains heavily reliant on hydropower (approximately 70%) and electricity imports (over 30% during peak demand). The National Energy Strategy 2030 aims to increase the share of renewable energy from the current 40% to over 50%. The full commissioning of the Gvozd wind farm will be a key enabler for achieving this goal, expected to increase the country’s renewable energy generation by approximately 8%, significantly enhancing energy self-sufficiency.
The second phase of the project will reportedly utilize three Vestas V150-7.0MW wind turbines, optimized for low wind speeds. These turbines feature blades up to 73.7 meters long, resulting in a 22% increase in efficiency compared to the first phase. All turbines will be equipped with an intelligent predictive maintenance system, which will connect in real time with the EPCG dispatch center in Podgorica via a cloud-based data platform, enabling remote monitoring and optimized load distribution.
This loan represents a continuation of the EBRD’s strategic investment in Montenegro’s energy sector. In June 2023, the bank provided €82 million for the construction of the first phase of the project (54.6 MW), which includes eight turbines and a 22-kilometer grid connection. The EBRD stated, “We are supporting Montenegro in building a resilient energy system for the future. This project will serve as a model for energy transition in the Western Balkans.”
Green transformation leverages a new future
EPCG announced at the signing ceremony that the project will create 180 local jobs during construction and require 25 specialized technicians during the operational phase, 60% of which will be filled through local recruitment. The company has reached a cooperation agreement with the Faculty of Engineering at the University of Montenegro to jointly develop a targeted training program for wind power operation and maintenance personnel.
Notably, the project’s accompanying transmission and transformation facilities will be interconnected with the Montenegro-Italy submarine cable (MONITA), allowing some of the green electricity to be transmitted to continental Europe. This marks Montenegro’s transformation from an energy importer to a regional green energy hub, with the potential to become a green electricity exporter in the Balkans.
The foundation work for the first phase of the project has been completed, with the first unit expected to be hoisted in December 2024 and commissioned in June 2025. The Latest Press has learned that civil construction for the second phase will begin in the first quarter of 2025, with full commercial operation planned for the third quarter of 2026. EPCG stated that it will adopt a modular construction approach to minimize the impact on the local ecological environment.
According to the International Renewable Energy Agency (IRENA), Montenegro’s wind power potential is estimated to exceed 300 MW. The successful implementation of the Gvozd project will provide important experience for subsequent development. With the advancement of the EU’s Carbon Border Adjustment Mechanism (CBAM), Montenegro’s clean energy transition will not only enhance its energy security but also gain a green competitive advantage for its industrial products entering the European market.
