The Electric Power Company of Montenegro (EPCG) is gearing up to initiate a tender valued at nearly 15 million euros over the next 50 days for the procurement of two cutting-edge battery energy storage facilities (BESS). This marks the commencement of one of the most important energy initiatives in Montenegro’s recent history. These systems will have a combined capacity of 240 MWh, facilitating a more consistent electricity supply, quicker integration of renewable energy sources, and enhanced energy autonomy.

The state-owned entity “Vijesti” officially communicated that the initial two BESS systems will be established within the Ironworks complex.

Each facility will deliver a power output of 30 megawatts (MW) and possess a capacity of 120 megawatt-hours (MWh), summing up to a total storage capacity of 240 MWh.

“Preparations for announcing the tender for procuring two 30MW/120MWh BESS systems are progressing on schedule and will be disclosed in the next fifteen days. Bidders will have a 45-day window to apply, with bidder selection and contract signing for procurement, delivery, installation, and commissioning of the BESS facilities to be conducted in accordance with the regulations set by the Public Procurement Law,” EPCG stated.

When queried about the openness of the tender to foreign firms or whether preference would lean towards domestic companies and consortiums, the response indicated that any qualifying company or consortium that meets the stipulations of the Public Procurement Law is welcome to apply for the tender.

“Bidders will need to provide references concerning the construction of BESS installations within the EU over the past five years. The delivery schedule will be contingent upon the equipment supplier, with expectations for BESS facilities to be operational no later than ten months following receipt of equipment. A substantial portion of preparatory activities and works will be finalized by the equipment delivery date,” the energy company indicated, adding plans to continue investing in BESS installations in 2026 and 2027.

By adopting BESS technology, EPCG aims to manage electricity surpluses and shortages more effectively.

“By storing energy during periods of low pricing (or elevated renewable energy production) and releasing it when prices ascend, considerable financial savings can be achieved along with additional revenue generation. BESS systems will also help diminish costly electricity imports during peak times and optimize the performance of existing power plants,” emphasized the company.

Recently, EPCG highlighted Montenegro’s substantial potential for solar and wind energy production; however, these sources are often inconsistent due to weather variability. Battery storage solutions effectively mitigate this concern as they enable energy to be stored and utilized at suitable times.

“This facilitates and accelerates the interconnection of new solar and wind installations while stabilizing the system. Furthermore, these systems provide an additional reserve in cases of failures or interruptions, enhancing supply security for households and businesses. Less reliance on electricity imports also equates to greater energy independence for Montenegro.”

With the European energy market evolving towards greater openness and digitalization, such adaptable systems will form the backbone for smart grids, modernizing the electricity marketplace and generating new services that enhance system efficiency. Through this initiative, EPCG fortifies its leadership stance in the region and prepares for future challenges.

“By proceeding with this tender, EPCG affirms its dedication to sustainable development, cutting-edge technologies, and bolstering Montenegro’s energy security. This project places our nation amongst those utilizing the most advanced energy technologies,” the company earlier reiterated.

The project will be financed through a loan.

“Vijesti” inquired as to whether EPCG had secured the total amount of approximately 50 million euros and the sources for this investment (whether from own funds, loans, or European funds).

“Various domestic and international banks, as well as funds, have shown interest in financing the construction of BESS facilities, as this technology enhances the efficient use of renewable energy sources. EPCG’s standard practice is to finance investment projects through loans rather than using its own funds, and loan repayment commences only once the plants are operational, allowing for repayment through profits,” EPCG stated.

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