Masdar, Abu Dhabi energy company, and Montenegro’s national power utility Elektroprivreda Crne Gore (EPCG) have moved their renewable energy partnership into the project execution phase, with agreements covering 150 MW of solar capacity and potential development of more than 400 MW of pumped hydro energy storage.

The agreements mark the first projects to advance under the planned 50/50 joint venture between Masdar and EPCG, which aims to develop up to 2 GW of renewable energy capacity in Montenegro.

The partnership is designed to strengthen the country’s energy security, meet rising domestic electricity demand and create opportunities for renewable power exports to neighbouring European markets.

The project agreements include the 115 MW Štedim solar photovoltaic (PV) project and the 35 MW Krupac solar PV project.

Masdar and EPCG have also signed a framework agreement to explore more than 400 MW of pumped hydro storage projects, which would help integrate additional renewable energy into Montenegro’s grid by storing excess electricity and releasing it during periods of higher demand.

The wider joint venture, announced in April 2026, will focus on large-scale renewable projects across solar, wind, hydropower, pumped hydro, battery storage and hybrid energy solutions.

It aims to establish Montenegro as a regional clean energy hub, with potential access to wider European electricity markets through the country’s existing subsea power connection with Italy.

Masdar has maintained a presence in Montenegro since 2018 through its investment in the 72 MW Krnovo Wind Farm, the country’s largest operating wind project.

The company is also expanding its global renewable energy portfolio as it works towards a target of 100 GW of capacity by 2030.

With a diversified portfolio exceeding 65 GW across solar, wind, energy storage and hybrid technologies, Masdar said Europe remains a strategic growth market as demand for reliable and affordable clean energy continues to rise.

The company’s experience through projects such as Greece’s 680 MW Amfilochia pumped hydro development is expected to support future energy storage opportunities in Montenegro.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Masdar's Chairman, said: “Europe’s demand for reliable, affordable energy is rising, and the need for new capacity has never been clearer. Today's agreements reflect Masdar’s ability to bring global expertise, proven technology and long-term investment to markets with strong growth potential. They also mark an important step in the deepening relationship between the UAE and Montenegro. 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.”

Admir Šahmanović, Minister of Energy and Mining of Montenegro, said: “For years, we have been talking about Montenegro’s exceptional potential in the field of renewable energy sources. Today, we can say that we have created the conditions for this potential to become concrete projects. Just three months after the establishment of the joint company, we are moving into the phase of implementing the first projects, which is the best confirmation of the seriousness of this partnership and the trust that one of the world’s leaders in clean energy has placed in Montenegro.”

Šahmanović added: “Through this partnership, we are not only building new energy capacities; 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 new development opportunities for our citizens, ensure more stable energy supply for the economy, and create the conditions for green energy to become one of Montenegro’s most significant export products.”

Mohamed Al Ramahi, Chief Executive Officer of Masdar, said: “These agreements mark an important step for Masdar in Montenegro and a significant progression in our partnership with EPCG. By combining Masdar’s global development expertise, investment capability and track record in delivering large-scale renewable energy projects with EPCG’s market leadership and deep operational knowledge, 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 unlock wider economic value for the country and the region.”

Al Ramahi added: “The Balkans, Southeast Europe and Central Europe are important growth markets for Masdar as we advance toward our target of 100GW of global renewable energy capacity by 2030. We look forward to deepening our collaboration with EPCG and the Government of Montenegro to deliver high-impact projects that support Montenegro’s growth ambitions and reinforce its position as a regional energy leader.”

Milutin Đukanović, Chairman of the Board of Directors of EPCG, said: “Cooperation with Masdar represents an important step towards achieving our vision of a modern and sustainable energy sector. By establishing a joint venture, we are creating the conditions for the implementation of new renewable energy projects, while simultaneously strengthening our professional capacities and improving EPCG’s operations. The signed agreements on the joint development of the Krupac and Štedim solar power plants, as well as the Framework Agreement for Cooperation in Hydroenergy, mark the beginning of the creation of a joint generation portfolio of EPCG and Masdar, which will be further developed and expanded in the coming period. We are confident that this cooperation model will bring both short-term and long-term value to the company and to Montenegro.”

Zdravko Dragaš, Chief Executive Officer of EPCG, said: “Partnership with Masdar opens a new chapter in EPCG’s development and our investment plans in the field of green energy. 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. Today’s signing of three agreements lays the foundation for long-term cooperation through the joint development of projects and the creation of a generation portfolio that will continue to expand with new investments in the years ahead. We expect this cooperation to further strengthen the energy transition process, enhance the company’s competitiveness and create new opportunities for the development of Montenegro’s economy.” -OGN/TradeArabia News Service