The Electric Power Company of Montenegro (EPCG) and the European Bank for Reconstruction and Development (EBRD) have signed an additional loan agreement today in Nikšić, amounting to 25 million euros, for the development of the Gvozd 2 wind farm.

This expansion of the Gvozd wind farm will elevate it to the facility with the highest installed capacity in Montenegro, reaching a total of 75.6 megawatts (MW).

“With the expansion, three new wind turbines have been installed, resulting in an annual production exceeding 210 gigawatt hours (GWh). This is sufficient to supply more than 35,000 households, while decreasing carbon dioxide (CO₂) emissions by nearly 137,000 tons annually,” stated an official announcement.

The EUR 82 million loan agreement, aimed at financing the Gvozd wind farm and its associated infrastructure, was signed on 19 June 2023, marking the EBRD’s largest direct investment in Montenegro’s energy sector to date. The new Gvozd 2 arrangement represents a logical continuation of this partnership and acts as a significant step towards the diversification and decarbonization of Montenegro’s energy landscape.

Milutin Đukanović, the President of the Board of Directors of EPCG, remarked that this initiative reaffirms EPCG’s role as the leading force in the energy transition within Montenegro and its status as a trusted partner of international financial institutions.

“This agreement with the EBRD demonstrates that EPCG is a reliable collaborator and that our projects are supported by key European financial institutions. The Gvozd wind farm expansion is more than just an infrastructure project; it’s a significant milestone in Montenegro’s energy transition, showcasing our readiness to undertake complex energy initiatives that foster long-term stability, development, and a European perspective for our country,” said Đukanović.

EPCG Executive Director, Ivan Bulatović, stated that this additional financing provides a strong boost to Montenegro’s energy future.

“The extra funding for the Gvozd 2 wind farm underscores our commitment to green transition and the modernization of the power system. This project will offer long-term advantages to both EPCG and the entirety of Montenegro by ensuring a stable supply, significant reductions in emissions, and a more energy-secure future for all citizens,” explained Bulatović.

He added that the Gvozd wind farm serves as an example of how local capacities, supported by international collaboration, can lead to sustainable development and reinforce Montenegro’s standing in meeting European climate objectives.

Francesco Corbo, EBRD Regional Head of Energy for the Western Balkans and Croatia, remarked that along with successful cooperation with EPCG, the EBRD is committed to supporting Montenegro’s green transition by promoting private investments in renewable energy sources.

“Through our Renewable Energy Market Accelerator (REMA) program, we assisted relevant institutions in setting the stage for the country’s inaugural renewable energy auction—an historic 250 MW solar power plant initiative. This illustrates our steadfast commitment to fostering a sustainable and diversified energy future for Montenegro,” added Corbo.

Remon Zakaria, Head of the EBRD Office for Montenegro, highlighted the significance of enhancing the partnership with EPCG and backing the development of a prominent renewable energy project in Montenegro.

“The Gvozd Wind Farm exemplifies how flexible, long-term financing can yield tangible results—both by increasing clean energy generation and setting new implementation standards. This additional investment reinforces our commitment to accelerating Montenegro’s green energy transition and enhancing its energy security,” noted Zakaria.

The Minister of Energy and Mining, Admir Šahmanović, underscored the project’s notable importance for Montenegro.

“Through this initiative, we are reinforcing the country’s energy security, cutting CO2 emissions, and paving the way for sustainable development. Our partnership with the EBRD signals confidence in collaborative planning and provides a strong incentive for the energy sector to drive economic growth in Montenegro,” added Šahmanović.

EPCG stated that the Gvozd wind farm is a project of national significance and a cornerstone of Montenegro’s energy transition. Thanks to additional support from the EBRD, it has secured the long-term stability and sustainability of the power system, alongside a significant contribution towards the European goal of exclusively producing electricity from clean sources by 2050.

“We are particularly delighted that this agreement was signed on our Company Day,” the statement concludes.

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