Image Credit : WAM
TIVAT, Montenegro — Abu Dhabi Future Energy Company PJSC – Masdar and Montenegro’s state-owned power utility Elektroprivreda Crne Gore (EPCG) have taken the next step in their strategic renewable energy partnership by signing agreements to develop 150 megawatts (MW) of solar power capacity and explore more than 400MW of pumped hydro energy storage.
The agreements mark the first projects under the 50-50 joint venture announced in April 2026, with the partners aiming to develop up to 2 gigawatts (GW) of renewable energy capacity across Montenegro. The initiative is designed to strengthen the country’s energy security, meet rising electricity demand and support future clean power exports to neighbouring European markets.
The initial development agreements include the 115MW Štedim solar photovoltaic (PV) project and the 35MW Krupac solar PV project. In addition, Masdar and EPCG signed a framework agreement to assess pumped hydro storage projects exceeding 400MW, helping integrate more renewable energy into Montenegro’s electricity grid while improving system reliability and flexibility.
The agreements were signed in Tivat in the presence of UAE Minister of Industry and Advanced Technology and Masdar Chairman Dr. Sultan Ahmed Al Jaber, and Montenegro’s Minister of Energy and Mining Admir Šahmanović.
Dr. Al Jaber said the partnership reflects Masdar’s ability to deliver long-term investment and advanced clean energy solutions while supporting Europe’s growing demand for reliable and affordable electricity. He added that the collaboration strengthens ties between the UAE and Montenegro and supports the country’s long-term economic growth.
Šahmanović described the agreements as a major milestone in turning Montenegro’s renewable energy potential into concrete projects. He said the partnership would attract investments worth hundreds of millions of euros, improve energy security, create jobs and position green electricity as one of the country’s future export sectors.
Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said the collaboration combines Masdar’s global expertise in renewable energy development with EPCG’s local market knowledge. He noted that the projects will diversify Montenegro’s energy mix, enhance grid stability and contribute to regional economic development.
EPCG Chairman Milutin Đukanović said the joint venture establishes a foundation for expanding the companies’ renewable generation portfolio through solar and hydropower projects, while Chief Executive Officer Zdravko Dragaš said the partnership marks a new phase in EPCG’s green energy investment strategy.
Beyond the initial solar projects, the joint venture will assess opportunities across wind, hydropower, battery storage and hybrid renewable technologies. Montenegro’s subsea electricity connection with Italy also provides a strategic route for exporting renewable power to wider European markets.
Masdar has operated in Montenegro since investing in the 72MW Krnovo Wind Farm in 2018. The company, which now has a global renewable energy portfolio exceeding 65GW, is targeting 100GW of installed renewable capacity worldwide by 2030. Europe remains a key growth market, supported by Masdar’s acquisition of TERNA ENERGY in 2025 and its involvement in major energy storage developments across the region.
