The Brajići wind farm project in Montenegro has resumed its permitting journey, as the project developer, Vjetroelektrana Budva, has filed documentation for an environmental-impact screening procedure. This submission pertains to a wind power plant with a capacity of up to 100.8 MW, spanning the municipalities of Budva and Bar.
The filing was made public by Montenegro’s Environmental Protection Agency on July 17, 2026. While this marks a significant procedural advancement, it does not equate to environmental approval or construction consent. The agency is tasked with assessing whether a full Environmental Impact Assessment is necessary, which will be followed by comprehensive studies on biodiversity, landscape, cultural heritage, and engineering aspects.
The preliminary design suggests the installation of up to 18 wind turbines, each capable of generating 6 MW. The environmental documentation references the Vestas V150-5.6 MW turbine model, featuring a rotor diameter of 150 metres. However, the exact number of turbines and their layout remain flexible and will be finalized following additional geotechnical and environmental evaluations.
This adaptability is beneficial from a commercial standpoint and indicates the project’s early technical development stage. The current configuration does not yet represent an investment-grade design; further planning is required for turbine placements, access routes, foundations, and grid connections.
The proposed wind farm site is located along a mountainous ridge between Paštrovska Gora and Crmnica, at altitudes ranging from approximately 800 to 1,130 metres. The area encompasses cadastral zones including Brajići, Kuljače, Utrg, Ovtočići, Tomići, and Brčeli, covering about 447.3 hectares. However, only a fraction of this land will be permanently utilized for infrastructure such as turbine foundations and access roads.
The distinction between the overall development area and the permanent land use will be crucial during the environmental review process. Initially, the land lease for the project covered roughly 235,462 square metres, or about 23.5 hectares, which is significantly less than the total area currently under consideration in the environmental documents.
The ridge has been identified as having a viable wind resource. Measurements taken from a 72-metre meteorological mast indicate an average wind speed of around 6.32 metres per second at that height. When adjusted for a hub height of 120 metres, this average increases to approximately 7.3 metres per second.
These measurements support ongoing project development; however, a comprehensive energy yield assessment will necessitate longer-term data collection and correlation with established reference data. Additional evaluations will also consider factors such as turbine-specific performance metrics and potential operational limitations.
The initial development plan projected an annual output of approximately 220 GWh, sufficient to power over 50,000 households. This anticipated capacity factor of around 24.9 percent aligns with regional standards but must be reconciled with updated wind data and final turbine specifications.
The Brajići project was awarded through a state process to a consortium led by wpd, with local representation by Vjetroelektrana Budva. The initial investment commitment was estimated at €101.3 million, supplemented by about €21.6 million from domestic firms. A land lease agreement was finalized in August 2020 at an annual rental rate of €2.50 per square metre.
This rental rate implies annual payments near €589,000, totaling around €17.7 million over 30 years, excluding adjustments for inflation or other changes. The overall financial picture suggests that the original investment figure may not reflect current construction costs accurately due to inflationary pressures on materials and labor during the protracted development timeline.
A revised financial estimate places total capital costs between €145 million–€180 million, translating to approximately €1.44 million–€1.79 million per MW. This range reflects varying scenarios based on project specifics such as turbine supply agreements and necessary infrastructure enhancements.
If annual generation meets the projected 220 GWh, with electricity priced at around €72 per MWh, gross revenue could approximate €15.8 million annually. After accounting for operational expenses estimated between €4 million–€5 million, this would yield an operating cash flow before debt service of about €11 million–€12 million.
A capital expenditure level around €155 million, financed through approximately 60–65 percent debt at borrowing rates of about 5.5–6.5 percent, could potentially deliver equity returns in the low double digits—around 10–13 percent. This scenario assumes stable market conditions without significant price drops or construction delays.
An optimistic production scenario estimating between 235–240 GWh annually at prices near €85 per MWh could elevate revenues towards approximately €20 million–€20.4 million annually, enhancing operating cash flow significantly while potentially increasing equity returns to around 15–18 percent.
The absence of guaranteed feed-in tariffs means that project bankability hinges on market price assumptions alongside long-term power purchase agreements or structured contracts to manage market risks effectively.
A corporate power purchase agreement could bolster debt capacity by securing renewable energy sources for industrial clients focused on sustainability goals. Montenegro’s connection to regional markets enhances commercial opportunities but requires careful analysis of transmission dynamics and potential losses.
The Brajići project stands out in Montenegro’s energy landscape, particularly against its growing solar initiatives, producing more output during winter months when regional demand peaks due to heating needs. This characteristic positions wind energy favorably within the broader energy mix but does not eliminate curtailment risk entirely.
The national transmission network already accommodates over 1 GW of proposed renewable projects requiring careful coordination regarding grid upgrades and stability measures. The environmental documentation includes plans for new substations and connection lines but lacks detailed arrangements necessary for financing decisions.
A potential delay in grid connection or permitting processes could incur substantial costs due to interest during construction or lost revenues from deferred operations. Such delays may weaken financial returns significantly depending on their duration and timing concerning equipment procurement.
The environmental assessment process will be critical moving forward as it identifies various protected habitat types within the proposed site while acknowledging gaps in data regarding local wildlife populations that may influence turbine placement decisions.
A thorough evaluation will necessitate extensive field surveys to assess bird and bat populations affected by wind farm operations while addressing concerns related to cultural heritage impacts due to visibility from surrounding areas.
Brajići’s successful implementation would considerably enhance Montenegro’s renewable energy capacity while contributing towards achieving national targets for sustainable energy consumption by 2030. However, meeting these objectives within expected timelines will require meticulous planning across all phases of development.
The recent filing signifies progress after years of delays since the land-lease agreement was established. To achieve operational status before 2028–2029 would necessitate stringent adherence to timelines across permitting procedures, community engagement efforts, financing arrangements, and construction logistics.
The project’s viability remains contingent upon reconciling its energy production capabilities with ecological considerations while ensuring robust logistical frameworks are established for effective grid connectivity.
