Masdar advances Balkan green power expansion through Montenegrin joint venture projects

Abu Dhabi's Masdar and Montenegro's state utility EPCG have finalized key development agreements for 150 MW of solar power and over 400 MW of pumped hydro storage, initiating execution under their joint venture targeting 2 GW of renewable energy capacity.

Abu Dhabi Future Energy Company (Masdar) and Montenegro’s state-owned power utility Elektroprivreda Crne Gore (EPCG) have entered into landmark commercial agreements to construct 150 MW of solar photovoltaic capacity and evaluate more than 400 MW of pumped hydro energy storage infrastructure in Montenegro.

Signed in Tivat by senior executives from both entities, the binding agreements represent the initial operational phase of a 50/50 joint venture aimed at delivering up to 2 GW of clean energy across the Balkan nation. Under the joint development agreements, the partnership will advance the 115 MW Štedim and 35 MW Krupac solar PV projects. Concurrently, a formal framework agreement establishes the parameters for jointly assessing large-scale pumped hydro storage facilities.

This initiative directly addresses Montenegro’s growing internal electricity demand while positioning the country as a regional renewable energy exporter. Interconnection infrastructure, particularly the existing high-voltage direct current subsea cable linking Montenegro to Italy, provides a direct pipeline for transmitting green electricity into Western European markets.

The expansion into utility-scale solar, wind, and storage aligns with European power decarbonization mandates and regional grid stabilization priorities. Flexible assets such as pumped hydro storage are increasingly critical for balancing variable solar generation and maintaining energy resilience across cross-border power transmission networks.

Headquartered in Abu Dhabi, Masdar is a global clean energy leader operating renewable asset portfolios across more than 40 countries. EPCG is Montenegro’s national power company, responsible for the generation, transmission, and supply of electricity nationwide.