Elektroprivreda Crne Gore (EPCG), Montenegro’s state-owned utility, has announced the launch of a third tender for battery energy storage systems (BESS). This move highlights the urgency for grid stabilization and the ongoing challenges faced in the country’s energy transition efforts.
The current tender is a pilot project, valued at approximately €120,000, and seeks bids for a smaller system with a power output of 100–130 kW and a storage capacity of 200–260 kWh. Bids are expected by mid-May.
This latest initiative marks a significant reduction from EPCG’s initial plans. The first tender, initiated in 2025, aimed to procure two large-scale battery systems with 30 MW each and 120 MWh capacity per unit, totaling 240 MWh of storage and requiring around €58.8 million in funding. However, this project was canceled due to the government’s refusal to approve debt financing.
A subsequent smaller tender, worth €75,000, also failed to attract any bids, indicating a lack of market interest in pilot-scale projects under the previous procurement structure.
The revised approach reflects a strategic reset for EPCG. Instead of focusing on large-scale projects, the utility is now adopting a modular, lower-risk pilot strategy aimed at testing battery integration. This approach seeks to validate technical performance and operational integration before committing to larger investments.
The need for battery storage remains critical as Montenegro’s power system transitions towards distributed renewable generation, particularly solar energy. Initiatives like Solari 3000+ have introduced new operational pressures on the distribution grid, originally designed for one-way power flows.
BESS technology is increasingly recognized as essential for managing these changes. By storing excess electricity during periods of high renewable generation and supplying it during peak demand, these systems can help stabilize voltage levels, reduce balancing costs, and decrease dependency on imports during high-price periods.
EPCG is finding that the economic rationale for storage is becoming clearer. Energy storage facilitates arbitrage opportunities between low and high price periods while enhancing system flexibility amid rising renewable energy penetration and market price volatility.
However, repeated failures in the tender process underscore persistent structural challenges. Financing remains a significant hurdle, especially for large-scale storage projects that need substantial upfront investment and clear regulatory frameworks regarding revenue streams. Additionally, limited participation from bidders indicates that market conditions—including contract designs and risk allocation—may not meet supplier expectations.
The pivot towards a pilot project signifies a more cautious approach to deployment. By experimenting with technology on a smaller scale, EPCG aims to mitigate risks associated with future investments and gain operational experience in integrating storage solutions into its network.
This situation in Montenegro mirrors trends observed across South-East Europe where the strategic importance of battery storage is recognized due to renewable energy expansion and system balancing needs. However, actual implementation remains inconsistent due to financing barriers, regulatory uncertainty, and market design issues.
EPCG’s latest tender thus represents more than just procurement; it serves as an initial effort to reconcile policy aspirations with the practical realities of transitioning to a more flexible and renewable-driven power system.
