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EBRD finances 55 MW wind farm in Montenegro with €82 million loan

By Nigina Mirbabaeva

  • €82 million loan to electricity utility and SPV is the EBRD’s largest in Montenegro to date
  • Loan to finance a 55 MW onshore wind farm, the second financed by the EBRD in Montenegro
  • EBRD helping Montenegro to develop its first renewable energy law and regulatory reforms

The European Bank for Reconstruction and Development (EBRD) is supporting the expansion of renewable energy generation in Montenegro with an €82 million loan to Elektroprivreda Crne Gore a.d. Nikšić (EPCG), the national electricity utility, and Green Gvozd LLC, a special-purpose vehicle (SPV) to be fully acquired by EPCG.

The investment will help EPCG to finance the acquisition, construction and operation of a new 55 MW onshore wind farm near the village of Gvozd in Nikšić municipality, helping accelerate EPCG’s decarbonisation plan and the energy transition of Montenegro. EPCG is active in the production, distribution and supply of electricity.

The relevant agreements were signed today in Podgorica by EBRD Director for the Western Balkans Matteo Colangeli and Head of Montenegro Remon Zakaria; EPCG’s Chairman of the Board of Directors Milutin Đukanović and CEO Nikola Rovčanin; and Krešimir Čondić for Green Gvozd.

Once completed, the Gvozd wind farm will generate renewable energy output equivalent to supply more than 25,000 households per year in Montenegro and is expected to save at least 104,000 tonnes of CO2 emissions per year, equivalent to the annual emissions of approximately 62,000 cars. The Gvozd wind farm is a milestone project for EPCG, being its first major new-generation asset in over 40 years, as well as its first wind farm.

It will be the second wind farm financed by the EBRD in Montenegro, after the 72 MW Krnovo, which was the first major electricity generating facility in the country since the 1980s.

The construction of new renewable energy capacity in Montenegro is fundamental to the country’s decommissioning plans to close its coal capacity, a key contributor to greenhouse gas and pollutant emissions and currently the source of almost half of Montenegro’s domestic electricity generation. The new wind farm will help to reduce the carbon intensity of Montenegro’s power sector and further its green economy transition.

In addition to financing, on the policy side the EBRD is assisting Montenegro in developing its first renewable energy law and regulatory reforms aimed at creating an enabling environment for renewable energy investments, as well as the launch of the country’s first renewable energy auction.

 “We are proud to support EPCG in developing this important project,” said Remon Zakaria, Head of the EBRD in Montenegro. “It is critical in order to initiate the decarbonisation of the energy sector in Montenegro and will support not only EPCG’s decarbonisation ambitions, but also significantly contribute to Montenegro’s energy security and green transition.”

Including this project, the EBRD has invested €811 million in 83 projects in Montenegro to date. Its primary areas of focus in the country are enhancing the competitiveness of the private sector, deepening Montenegro’s green economy transition, and supporting further connectivity and regional integration.

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