Abu Dhabi Future Energy Company, known as Masdar, and Elektroprivreda Crne Gore, or EPCG, will jointly develop the 115-megawatt Štedim solar photovoltaic project and the 35-megawatt Krupac solar plant. The agreements cover 150 MW of initial generation capacity under a wider platform designed to transform Montenegro into a regional clean electricity producer.
The companies also agreed to assess pumped hydro energy storage projects with combined capacity exceeding 400 MW. Such facilities would store surplus electricity by pumping water to an elevated reservoir and release it through turbines when consumption rises or solar and wind output declines.
The projects are the first to advance under a 50-50 joint venture agreed in April. The venture, which will be headquartered in Nikšić, is targeting a portfolio of up to 2 GW across solar, wind, hydropower, pumped storage, battery systems and hybrid energy technologies.
The agreements were signed in Tivat by EPCG board chairman Milutin Đukanović, EPCG chief executive Zdravko Dragaš and Masdar executive director Husain Al Meer. UAE Minister of Industry and Advanced Technology and Masdar chairman Sultan Ahmed Al Jaber attended alongside Montenegro’s Energy and Mining Minister Admir Šahmanović.
The move strengthens Masdar’s position in Southeast Europe as the company builds a larger portfolio across established and emerging European electricity markets. Europe has become central to its goal of reaching 100 GW of global renewable energy capacity by 2030. Its worldwide portfolio exceeds 65 GW across operational, under-construction and planned assets.
Montenegro offers strategic value because of its renewable resources, hydropower system and electricity connection with Italy. An undersea cable across the Adriatic Sea provides a potential route for exporting electricity into Southern Europe, while land-based networks connect the country with neighbouring Western Balkan markets.
The joint venture is intended to supply rising domestic demand before directing surplus generation towards regional buyers. Montenegro is seeking to modernise an electricity system that still depends partly on coal while improving reliability and limiting exposure to volatile power imports.
Its government has set a goal of raising renewable energy to 50 per cent of total final energy consumption by 2030. Officials expect the Masdar partnership to attract investment worth hundreds of millions of euros, create jobs and support wider industrial development.
Pumped storage could prove especially important as Montenegro adds variable solar and wind generation. Solar plants produce most heavily during daylight hours, while consumption can peak after sunset. Storage would allow the system operator to shift electricity across the day, reduce curtailment and respond more effectively to sudden changes in supply.
Masdar can draw on experience gained through TERNA ENERGY, the Greek renewables business it acquired in 2025. TERNA ENERGY is developing the 680 MW Amfilochia pumped storage project in Greece, one of Europe’s largest projects of its type.
The Montenegro push also builds on Masdar’s ownership interest in the 72 MW Krnovo wind farm, which began operating in 2017. Masdar invested in the project the following year. The wind facility, Montenegro’s largest operating wind farm, generates about 200 gigawatt-hours annually, supplies electricity equivalent to the needs of roughly 45,000 households and avoids about 80,000 tonnes of carbon emissions a year.
Cooperation accelerated after the UAE and Montenegro signed an energy agreement in November 2025. The two companies announced plans in January to examine a joint venture, formalised their partnership in April and progressed the first projects within three months.
Masdar chief executive Mohamed Jameel Al Ramahi said the partnership combined the developer’s international investment and project-delivery experience with EPCG’s operational knowledge and domestic market position. He identified the Balkans, Southeast Europe and Central Europe as important growth territories.
EPCG expects the venture to diversify its generation fleet and strengthen its ability to manage complex energy projects. The utility will contribute local infrastructure, engineering knowledge and access to potential sites, while Masdar provides capital, technology partnerships and experience arranging financing for utility-scale developments.
