The Kapino Polje B1 solar project, developed by EPCG, has received approval and is set to play a significant role in Montenegro’s energy policy. Located near Nikšić, the 11.4 MWp facility is projected to generate approximately 15.8 GWh of electricity in its first year. This initiative marks the beginning of a series of four planned solar plants at the Kapino Polje site, with an overall investment totaling €35.1 million. As Montenegro seeks to enhance its renewable energy generation, EPCG’s involvement as the state utility positions this project as a key component of the country’s strategic energy transition.
However, the Kapino Polje project highlights potential environmental, social, and governance (ESG) challenges associated with renewable energy developments. Environmental organizations have raised concerns regarding the area’s ecological sensitivity, particularly for local bird populations, wetlands, and overall biodiversity. An environmental impact assessment approved for the project indicates that while the specific site is not designated as an Important Bird Area (IBA) or part of the Natura 2000 special protection network, it still recognizes the ecological significance of the broader Nikšićko polje region.
This situation underscores the need for Montenegro’s renewable energy sector to evolve in response to ESG considerations. Financial institutions, European Union entities, and strategic partners are likely to demand thorough and transparent environmental documentation. While a project may be considered green in terms of energy production, it may still face challenges if biodiversity concerns, permitting processes, or stakeholder engagement are inadequately addressed.
The Kapino Polje initiative serves as a governance benchmark for Montenegro’s approach to solar energy development. The country can advance its solar capacity; however, it must ensure robust environmental assessments, cumulative impact evaluations, biodiversity monitoring, and credible mitigation strategies are in place. Given that state-led renewable projects will attract greater public scrutiny than private endeavors due to their alignment with national policy objectives, EPCG’s ability to manage Kapino Polje responsibly will be crucial in shaping future confidence in Montenegro’s solar industry.
