Montenegro renewable energy investment prospects
Montenegro is launching a significant initiative to attract investors to its energy sector, with ambitious plans to develop 5.5 GW of renewable energy projects.
The government is inviting investment in a diverse range of projects—including solar, wind, and hydropower—as part of its strategy to enhance the country’s energy infrastructure and reduce its reliance on fossil fuels. This move aims to meet growing electricity demand while advancing toward a sustainable energy future.
The Ministry of Economic Development and Tourism has announced it will award concessions for 5,500 MW of renewable energy projects, a key component of Montenegro’s efforts to modernize its energy sector. The investment opportunity was a central topic at the Montenegro Energy Investment Forum, an event hosted by the Ministry in collaboration with the British Embassy in Podgorica and the Chamber of Commerce of Montenegro. Minister Goran Đurović emphasized the importance of these projects for confronting the country’s current energy challenges.
Key Montenegro renewable energy projects
The Ministry has outlined several major projects open for investment. Among them is the development of a 2,500 MW solar power plant, expected to significantly bolster the country’s renewable energy capacity. Plans also include a 1,000 MW wind farm, a 1,000 MW pumped-storage hydropower plant, and a 1,000 MW hydrogen production facility.
These projects are vital for Montenegro as it transitions to cleaner energy sources. The solar power plant is expected to be a cornerstone of the country’s renewable energy mix, while the wind farm and hydropower plant will provide essential capacity to meet peak energy demands. Montenegro’s current energy infrastructure includes the 225 MW Krnovo and 118 MW Mozura wind farms, along with several smaller solar power plants. However, the country still relies heavily on fossil fuels, with the Pljevlja thermal power plant generating 225 MW of electricity.
Addressing Montenegro renewable energy challenges
Minister Đurović highlighted the critical need for these projects to address Montenegro’s energy challenges. The country is facing shortages in electricity production and has become increasingly dependent on imports. Surging electricity prices over the past two years have underscored the urgent need for investment in renewable energy.
The Minister noted that the country’s energy needs have surpassed expectations, making it imperative to develop new capacities. “We need new capacities, and we are looking for investors to help us achieve this goal,” Đurović stated. He confirmed that the government is ready to offer concessions for the construction of new energy facilities, stressing the need to shift from fossil fuels toward renewable sources.
Hydropower projects under consideration
Alongside these large-scale projects, the Ministry is considering the construction of a 350 MW pumped-storage hydropower plant in the hinterland of Herceg Novi. This facility would help stabilize the national electricity grid and provide additional capacity during peak demand.
The government is also exploring the construction of the Komarnica hydropower plant on the Komarnica river. The proposed plant would have an installed capacity of 170 MW and an annual production of 213 GWh. With an estimated cost of EUR 246 million, the project is considered a key element of Montenegro’s efforts to diversify its energy sources.
Montenegro’s push for renewable energy investment comes at a pivotal time for its energy sector. With rising electricity demand and growing pressure to reduce carbon emissions, the government is eager to attract investors who can help drive the transition to a more sustainable energy future.
