Masdar and Montenegro’s national power utility EPCG moved their strategic 2-gigawatt renewable energy partnership into execution on July 28 with the signing of joint development agreements for two solar photovoltaic projects and a framework pact to explore large-scale pumped hydro storage. The deals, inked in Tivat in the presence of UAE Minister of Industry and Advanced Technology Dr. Sultan Ahmed Al Jaber and Montenegro’s Minister of Energy and Mining Admir Šahmanović, mark the first concrete steps under a 50-50 joint venture formed after an agreement in April. According to a statement issued by Masdar, the projects will help meet rising domestic electricity demand in Montenegro while opening opportunities for green power exports across the Western Balkans and into Southern Europe.
The joint development agreements cover the 115-megawatt Štedim solar facility and the 35-megawatt Krupac solar project, the companies said in the announcement. They also signed a framework for action to assess the potential for more than 400 megawatts of pumped hydro energy storage, which would store electricity during periods of excess supply and release it when needed to bolster grid flexibility and resilience. The statement from Masdar noted that such storage solutions are key to integrating higher shares of variable renewable generation into Montenegro’s electricity system.
Masdar’s statement described the joint venture as a platform that combines the UAE company’s global development expertise with EPCG’s position as Montenegro’s leading energy producer and its deep local knowledge. The partnership, which targets technologies including solar, wind, hydropower, battery storage and hybrids, aims to strengthen national energy security and support economic growth through investments worth hundreds of millions of euros. In the release, the companies highlighted Montenegro’s existing subsea interconnection with Italy as a potential conduit for renewable electricity exports to wider European markets.
His Excellency Dr. Sultan Ahmed Al Jaber said in the statement, “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.” His Excellency Admir Šahmanović added that the swift move to implementation just three months after the joint venture’s establishment confirms the seriousness of the collaboration, which will create jobs and position green energy as a significant export product for Montenegro.
Mohamed Jameel Al Ramahi, chief executive officer of Masdar, stated in the announcement, “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.” The Masdar release indicated that the Balkans, Southeast Europe and Central Europe represent important growth areas as the company advances toward its target of 100 gigawatts of global renewable capacity by 2030.
Milutin Đukanović, chairman of the board of directors of EPCG, said in the statement, “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.” Zdravko Dragaš, chief executive officer of EPCG, noted that the partnership opens a new chapter by blending international experience with local expertise to increase generation from renewables and enhance the company’s competitiveness.
Masdar has maintained a presence in Montenegro since 2018 through its investment in the 72-megawatt Krnovo Wind Farm, which remains the country’s largest operating wind project, according to the company’s assessment. The latest agreements build on that foundation while drawing on Masdar’s broader European experience, including its acquisition of TERNA ENERGY and development of the 680-megawatt Amfilochia pumped hydro project. Masdar’s portfolio data places its diversified global renewable capacity at more than 65 gigawatts across solar, wind, storage and hybrid technologies.
