Montenegro’s power utility EPCG and the European Bank for Reconstruction and Development (EBRD) signed an additional loan arrangement in Nikšić worth 25 million euros for the construction of the Gvozd 2 wind farm, through which the facility is being expanded to become the plant with the highest installed capacity in Montenegro - a total of 75.6 MW.
The expansion includes three new wind turbines, with annual production exceeding 210 GWh, enough to supply more than 35,000 households, while CO₂ emissions are reduced by nearly 137,000 tonnes per year, EPCG announced.
The loan agreement worth 82 million euros, intended to finance the construction of the Gvozd wind farm and its connection infrastructure, was signed on 19 June 2023 and represented the largest direct investment by the EBRD in Montenegro’s energy sector to date. The new arrangement for Gvozd 2 was a logical continuation of this partnership and an additional strong step in the diversification and decarbonisation of Montenegro’s energy sector.
Chairman of EPCG’s Board of Directors Milutin Đukanović said that with this project EPCG once again confirms itself as the leading driver of the energy transition in Montenegro and a reliable partner of international financial institutions.
“This arrangement with the EBRD once again confirmed that EPCG is a reliable partner and that our projects enjoy the trust and support of the most significant European financial institutions. The expansion of the Gvozd wind farm is not just another infrastructure project, but a major step forward on Montenegro’s path of energy transition and proof that we are ready to carry out even the most complex energy projects, bringing our country long-term stability, development and a European perspective,” Đukanović stressed.
EPCG’s executive director Ivan Bulatović underlines that the additional financing gives a strong boost to Montenegro’s energy future.
“The additional financing for Gvozd 2 has demonstrated our firm commitment to the green transition and the modernisation of the power system. This project brings long-term benefits both to EPCG and to Montenegro as a whole, as it guarantees stable supply, significant emission reductions and a more secure energy future for all our citizens. The Gvozd wind farm will be an example of how domestic capacities, with strong international support, can ensure sustainable development and strengthen Montenegro’s position on the path to European climate goals,” Bulatović underlined.
EBRD Regional Head of Energy for the Western Balkans and Croatia Francesco Corbo said that alongside the successful cooperation with EPCG, the EBRD is proud to support Montenegro’s green transition by encouraging private investment in renewable energy sources.
“Through our Renewable Energy Market Accelerator (REMA) programme we helped the relevant institutions to pave the way for the country’s first auction for renewable energy - a historic 250 MW solar project. This proves our strong commitment to building a sustainable and diversified energy future for Montenegro,” Corbo said.
Head of the EBRD office for Montenegro, Remon Zakaria, highlighted the importance of deepening the partnership with EPCG and supporting the development of Montenegro’s leading renewable energy project.
“The Gvozd wind farm shows how flexible, long-term financing can deliver real results – both through increased clean energy production and by setting new standards in project implementation. This additional investment confirms our commitment to accelerating Montenegro’s green energy transition and strengthening its energy security,” Zakaria noted. Minister of Energy and Mining Admir Šahmanović said the project is of special importance for Montenegro.
“With this project we are boosting the country’s energy security, reducing CO₂ emissions and creating space for sustainable development, while the partnership with the EBRD confirms trust in our shared plans and gives a strong incentive for the energy sector to be the driving force of Montenegro’s economic growth,” Šahmanović concluded.
(EUpravo zato/ekapija)
