The Korita wind farm in Montenegro has obtained a connection agreement with the national transmission system operator, CGES, but continues to lack a construction permit following the government’s rejection of the developer’s initial application. This decision came just five days prior to the announcement of the grid contract.
This situation highlights ongoing issues in renewable energy development, where grid access, environmental approvals, and construction permits are often processed separately, despite their interdependencies. For an 88 MW project valued at €132 million, this delay could significantly impact technical design, development timelines, financing conditions, and the credibility of its planned commissioning date in 2030.
The Ministry of Spatial Planning, Urbanism and State Property turned down the application from Vjetro park Korita DOO for the initial phase of the wind farm located in Bijelo Polje. The rejection was formalized on 18 June 2026, under the signature of Minister Slaven Radunović.
Following this, on 23 June, CGES announced that it had signed a connection agreement with the developer for the 88 MW wind farm. The project’s estimated investment was reported as €132 million, translating to about €1.5 million per installed megawatt.
While this connection agreement addresses one of the hurdles identified during the permitting process, it does not negate the ministry’s earlier decision nor grant permission for construction to commence. The developer must still navigate the construction-permit process through either a new or amended application or by appealing to Montenegro’s Administrative Court.
The construction permit application was originally submitted at the end of December 2025, with additional documentation provided in January and March 2026. This application pertained to the first phase of the wind farm on land within the Korita cadastral municipality.
The supporting documents included essential design elements, a design-review report, property records, and approvals from relevant public authorities. It also featured a decision from Montenegro’s Environmental Protection Agency approving an environmental impact assessment for a facility with a total installed capacity of 72.60 MW.
Despite this comprehensive package, the ministry determined that the application did not meet statutory conditions because CGES had not yet approved the main design. During this administrative process, CGES indicated that it could not issue consent for the wind farm’s infrastructure due to the absence of a signed transmission-network connection agreement.
This connection agreement was finalized shortly after the rejection of the construction permit application, underscoring a recurring issue in large energy projects where dependencies can complicate progress. The construction authority required CGES approval for the main design, while CGES needed a completed connection process before granting such approval.
A significant change in project capacity also contributed to these challenges. Previously, CGES had completed a connection analysis for 72.60 MW, which aligned with environmental approvals. However, in November 2025, the developer sought a new analysis to increase capacity to 88 MW.
This adjustment represents an increase of 15.40 MW, or approximately 21.2 percent, over what was initially assessed under earlier environmental and grid documentation. CGES noted that it was still preparing this new connection analysis during the construction-permit procedure, which hindered its ability to approve submitted technical documents.
The revised capacity may pose further permitting difficulties as it necessitates demonstrating that various aspects—such as turbine layout and internal cable systems—remain valid under this larger project configuration or obtaining necessary amendments and supplementary approvals.
The planned 35/400 kV substation indicates that Korita is being designed for direct integration into Montenegro’s highest transmission network level. This increases the importance of comprehensive grid-compliance studies that cover various operational parameters.
The connection agreement marks an important milestone; however, its viability is contingent upon clarifying associated obligations. Financial backers will require details regarding connection points, construction cost allocations, responsibilities for substation works, completion timelines, and guarantees concerning energization conditions.
At an investment level of €132 million, Korita is substantial enough to necessitate structured project financing or significant sponsor equity during its development phase. A traditional financing model could involve approximately 65–75 percent senior debt, potentially leading to borrowing between €86 million and €99 million, with remaining funds sourced from equity and subordinated capital.
The projected investment intensity of €1.5 million per MW is plausible for large onshore wind projects but leaves little margin for unexpected cost increases. Factors such as mountainous terrain and road infrastructure could elevate expenses beyond initial estimates. Additionally, delays related to permitting could lead to extra costs if they hinder financial closure or commencement notices.
A potential delay ranging from 12–18 months between original development plans and readiness for construction could escalate financing needs due to additional expenses incurred during development and potential changes in market conditions prior to the anticipated start date in 2030.
The ministry had previously expressed concerns before issuing its rejection notice on 24 March 2026. Vjetro park Korita was informed of these findings and given five days to respond but did not provide any feedback within that timeframe.
This lack of response eliminated an opportunity to address issues surrounding the pending CGES process or request more time for clarification on when new analyses would be completed. For projects of this magnitude, managing administrative correspondence is crucial as it forms part of development risk assessed by lenders and investors during due diligence.
The newly established connection agreement lays a stronger foundation for a renewed application if CGES can now approve the updated main design. The developer must ensure consistency across all documentation concerning capacity references to avoid compliance gaps between an 88 MW grid agreement and a previous environmental approval covering only 72.60 MW.
The current technical and legal path forward requires harmonization rather than simple document collection; all components must reflect an integrated project configuration. Any discrepancies in turbine capacity or related specifications could trigger further requests for additional information.
The ministry’s rejection does not indicate that Korita cannot be constructed; rather, it reflects that essential processes were not fully integrated into technical documentation prior to submission. While CGES’s agreement addresses immediate concerns behind the permit denial, it does not retroactively transform the rejected application into an approved permit.
The target commissioning date of 2030 remains feasible; however, time constraints are tightening as subsequent steps must align efficiently post-permitting completion. The next application will need to represent an integrated investment plan rather than relying on earlier approvals prepared under previous configurations.
