Elektroprivreda Crne Gore (EPCG) has submitted a significant financing proposal to the government, requesting approval for long-term borrowing of up to €64.22 million. This funding is intended to support a portfolio of ten renewable energy projects that collectively have an installed capacity of 95.87 MWp and are expected to generate approximately 124,518 MWh annually.
The estimated debt requirement stands at around €670,000 per MWp; however, this figure should not be viewed as a direct benchmark for project capital expenditures due to the varied nature of the projects involved. The financing encompasses multiple developments rather than a single utility-scale facility, which may involve different stages of development, site conditions, and balance-of-plant requirements.
This initiative solidifies EPCG’s role as Montenegro’s leading aggregator in the renewable energy sector. The company’s broader pipeline includes solar, wind, hydropower, and battery initiatives, with ongoing projects previously estimated at about 639 MW and requiring an investment of approximately €646.5 million. Currently operational projects include the 54.6 MW Gvozd 1 wind farm and the planned expansion of Gvozd 2 at 21 MW, along with a proposed battery facility with a capacity of 60 MW/240 MWh at EPCG Željezara Nikšić.
The request for financing highlights the necessity for rigorous monitoring of EPCG’s consolidated balance sheet. The utility reported a robust recovery in earnings during the first quarter of 2026, achieving a net profit of roughly €36.5 million compared to €10.2 million in the same period last year. This rebound follows a challenging 2025 characterized by elevated electricity import costs, unfavorable hydrological conditions, and an extended outage of the Pljevlja thermal power plant.
In addition to its financing proposal, EPCG has also executed a minor capital restructuring by canceling 110,015 treasury shares. This action has reduced its share capital from approximately €714.7 million to €713.8 million. These shares were originally repurchased for about €923,100 from shareholders who opposed an €82 million loan from the European Bank for Reconstruction and Development (EBRD) aimed at funding Gvozd. The government maintains a controlling stake of approximately 98.6% in EPCG.
The viability of the new renewable energy portfolio will hinge on several factors including project-specific generation assumptions, readiness for connection to the grid, exposure to curtailment risks, engineering procurement construction pricing, and how merchant electricity revenues are treated. Projects financed primarily through EPCG’s corporate balance sheet may progress to construction more swiftly than those relying solely on project finance; however, they also amalgamate risks associated with hydrology, thermal generation, import pricing, and construction within a single state-controlled entity.
