Montenegro shifted in 2026 toward a strategic-partner model for a planned 60 MW / 240 MWh battery energy storage system (BESS), after EPCG’s borrowing-funded procurement was cancelled and a later pilot tender attracted no bids. The project under the new model is envisioned as the first phase of a broader partnership, rather than a standalone conventional utility procurement. A government decision establishing a working group for the BESS strategic project was published in October 2026 and entered into force on 17 October 2026.
EPCG’s original procurement targeted two units of 30 MW / 120 MWh each at Zelezara Niksic. The government did not approve the borrowing required to finance the procurement, and it was cancelled. A later small pilot tender also failed to attract bids, adding to the difficulties of executing the project through the original route.
Under the strategic-partner concept, an investor could contribute technology, engineering, procurement and construction (EPC) execution and part of the capital structure. That would avoid leaving EPCG to procure equipment and raise debt separately. The model could also provide a clearer route to performance guarantees and long-term operating support, which are important for bankability.
Montenegro’s storage case is supported by its hydropower, rapidly growing solar generation, volatile electricity-import requirements and access to regional electricity markets. The challenge is described as financing and delivery structure, rather than a lack of use cases or mature technology.
The next BESS tender should be assessed on whether it allocates completion, performance and market risks to parties able to absorb them, rather than mainly on headline EUR per MWh. The technology is described as mature, while the remaining task is to create a financing model that can secure public-sector approval and reach financial close. The 60 MW / 240 MWh first phase is part of the proposed partnership concept; its financing and delivery structure remain central to execution.
