The Electric Power Company of Montenegro (EPCG) and Alcazar Energy Partners II HoldCo Limited (AEP), based in London, have signed a Memorandum of Understanding (MoU), marking the beginning of negotiations for a contract to sell electricity from the future Bijela wind farm in the municipality of Šavnik, which is owned and developed by AEP.
The MoU was signed on behalf of EPCG by Chairman of the Board Milutin Đukanović and CEO Ivan Bulatović, and on behalf of AEP by partner and co-founder Markus von Haniel and CFO Tim Sheahan.
Milutin Đukanović, Chairman of the Board of EPCG, welcomed the new strategic partnership with the renowned European partner, AEP, emphasizing that this is yet another proof of EPCG’s commitment to fully utilizing Montenegro’s vast energy potential in the field of renewable energy sources (RES).
“I am glad that today we are hosting representatives from such a prestigious company, and I believe that through the upcoming discussions, we will reach the best possible solution for both sides regarding the utilization of energy from the Bijela wind farm,” Đukanović said.
EPCG CEO Ivan Bulatović highlighted the crucial importance of establishing such strategic partnerships for the future energy stability of Montenegro, which is essential for the country’s sustainable economic development. He emphasized that cooperation with reputable international partners like AEP enables not only the modernization of the energy sector but also accelerates the transition to cleaner and more sustainable energy sources.
“This MoU represents a significant step in strengthening Montenegro’s energy stability, as through the use of renewable energy sources like wind farms, we reduce dependence on fossil fuels and contribute to lowering harmful emissions into the atmosphere. This not only helps us achieve ecological goals but also opens up new economic opportunities, creating sustainable jobs and stimulating the development of new industries. The negotiations on the Power Purchase Agreement (PPA) are also of great importance,” Bulatović emphasized.
AEP’s management highlights that this partnership reflects their commitment to developing sustainable and financially viable infrastructure projects in the Western Balkans.
“Together with EPCG, we are focused on supporting Montenegro’s energy security and long-term economic development through the Bijela wind farm, while playing a key role in the country’s transition to clean energy. This partnership is a continuation of our commitment to developing the largest renewable energy platform in the Western Balkans,” said AEP co-founder Daniel Calderon, whose message was conveyed by company representatives during the discussions.
The wind farm project, owned by AEP, is expected to install a capacity of 118.8 MW. The goal of this cooperation is to align the conditions for selling the generated electricity to EPCG. The MoU serves as the basis for the start of negotiations on the future PPA, which is expected to be finalized in the near future.
Both parties have agreed to work toward reaching a detailed agreement on the terms of the PPA within 90 days of signing the MoU. Although non-binding in a legal sense, the MoU clearly defines the intent of both parties to continue negotiations and further develop this important energy infrastructure project.
“This MoU is a key step towards further energy stability in Montenegro and the development of sustainable energy sources, reaffirming both parties’ commitment to realizing long-term projects of mutual interest,” the statement concludes.
