Montenegro is entering a critical phase in the development of the Kruševo hydropower project, with authorities aiming to finalize essential technical and project documentation by the end of the year. This milestone is significant for one of the country’s key energy investments.
The facility, which is being developed by Elektroprivreda Crne Gore (EPCG), will have an installed capacity of 82 MW and is projected to generate approximately 170 GWh annually. This positions it as a mid-scale generation asset capable of fulfilling both baseload and system-balancing functions.
The current focus is on completing the documentation phase, which includes feasibility studies, environmental assessments, and technical designs. This phase is crucial for obtaining necessary permits and regulatory approvals, as well as for structuring financing and finalizing engineering concepts. Montenegro is currently assessing whether to pursue a conventional hydropower plant model or a pumped-storage configuration.
The estimated investment for the project stands at around €160 million, aligning with typical capital requirements for hydropower projects of this magnitude in the Western Balkans. Initial geological surveys and preparatory fieldwork have commenced, establishing the technical foundation needed for detailed design and tendering processes.
Kruševo is increasingly viewed as a system-level asset rather than merely a generation project. Its significance extends beyond electricity production to include contributions to grid stability, flexibility services, and potential integration with variable renewable energy sources, particularly as Montenegro enhances its wind and solar capabilities through initiatives like Gvozd and upcoming solar projects.
The engagement of international partners is a notable aspect of this project. Ongoing discussions with EDF suggest that French involvement could facilitate both technical optimization and access to structured financing. Additionally, the project’s alignment with broader EU-compliant frameworks may open avenues for multilateral funding and participation from development banks.
Within Montenegro’s energy strategy, Kruševo is positioned alongside other major flexibility projects, including pumped-storage concepts and grid enhancement initiatives. The timeline for its development will depend on completing documentation and achieving financial closure, indicating that construction could commence once technical parameters and partnership arrangements are clearly defined.
For EPCG, this project signifies a transition towards more capital-intensive investments that are system-oriented, moving away from traditional hydropower assets to infrastructure that supports a more complex grid driven by renewable energy sources.
