Montenegro’s state-owned power utility, EPCG, has canceled its €58 million tender for a 50 MW/200 MWh battery energy storage system (BESS) due to the absence of bids. This setback comes as the country faces significant grid instability, exacerbated by blackouts and the shutdown of its largest thermal power plant in Pljevlja.
Challenges With the Montenegro BESS tender cancelled
Montenegro’s state-owned power utility, Elektroprivreda Crne Gore (EPCG), has canceled a crucial €58 million tender for a 50 MW/200 MWh battery energy storage system (BESS) after receiving no bids. The project is vital for maintaining grid stability in a country grappling with frequent blackouts and the prolonged shutdown of its largest thermal power plant in Pljevlja.
The tender, first issued in July, was a cornerstone of EPCG’s strategy to stabilize the national grid. However, the lack of interest may be linked to the utility’s own financial challenges. EPCG reported that its net loss widened significantly to €24.5 million in the first half of 2025, a stark increase from €3.4 million during the same period in 2024. This financial strain, coupled with the operational difficulties at the TPP Pljevlja power plant, may have made potential partners hesitant to bid.
The tender process began in January with a solicitation for expressions of interest, seeking a turnkey solution that included procurement, construction, installation, and testing. Despite being funded by a loan from the International Bank for Reconstruction and Development (IBRD), no bids were submitted by the October 15th deadline, forcing the cancellation.
BESS Project Funding and Future Prospects After Montenegro BESS tender cancelled
The BESS project is part of a larger €82.5 million loan from the IBRD, with €70.5 million specifically earmarked for EPCG to enhance energy security. The World Bank’s approval of the loan in April underscored the urgent need to build Montenegro’s energy resilience.
Despite this setback, EPCG remains committed to the project. The utility plans to reissue the tender, likely with revised terms to attract bidders. The World Bank has also reiterated its support for developing BESS projects in Montenegro, viewing them as essential for integrating renewable energy and improving grid reliability.
This is particularly important as Montenegro explores its massive solar power investment opportunity. The proposed BESS is critical for facilitating the integration of renewable energy sources (RES) into the national grid. With the Krnovo wind farm already operational and numerous RES projects in development, including a stunning 200 MW solar plan, energy storage is no longer optional but a necessity for a stable power supply.
Montenegro’s Energy Crisis and the Role of BESS After Montenegro BESS tender cancelled
Montenegro’s energy sector is facing a severe crisis. Frequent blackouts and the extended shutdown of the Pljevlja thermal power plant since June—due to mechanical failures and coal shortages—have highlighted deep vulnerabilities in the system. The plant is a major contributor to the country’s electricity supply.
Consequently, EPCG has been forced to import expensive electricity to meet domestic demand, placing a heavy burden on the national energy budget. The BESS project is viewed as a critical solution, designed to provide a reliable backup power source and stabilize the grid during periods of peak demand or generation shortfalls. The push towards renewables is evident in recent government actions, such as the launch of a 250 MW solar auction, which further emphasizes the need for storage solutions to manage intermittency.
The system was initially planned for installation at the TPP Pljevlja site and was expected to be operational by the end of 2025. The tender’s cancellation has unfortunately delayed this critical infrastructure project.
With the backing of the World Bank and other international partners, Montenegro aims to navigate its current energy challenges. Building a more resilient and sustainable energy system is a priority, and while this delay is a hurdle, the long-term vision remains. For a comprehensive overview of the country’s solar landscape, see this detailed market insights report.
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