On July 15, 2026, Montenegro’s electricity market experienced a significant tightening of its balance due to rising summer consumption, which coincided with a decline in domestic generation capacity. The BELEN day-ahead baseload price surged by €22.60, reaching €126.59/MWh, marking its highest level in a week. Despite this increase, the price remained €24.48/MWh lower than Hungary’s HUPX and €39.32/MWh below that of Italy.
National consumption forecasts rose sharply from 409 MW to 442 MW, reflecting an approximate 8 percent increase within a single day. In contrast, expected generation dropped from 308 MW to 291 MW, leading to an increase in Montenegro’s average import requirement from 101 MW to 151 MW. This deficit represented about 34 percent of total demand, highlighting the country’s vulnerability to regional pricing fluctuations during peak tourism periods and reduced hydro or wind power generation.
The current electricity generation landscape remains heavily reliant on the Pljevlja thermal power plant, which accounted for an average output of 201 MW—approximately 71 percent of total domestic production. Hydropower contributed an additional 49 MW, while wind energy from the Krnovo and Možura projects averaged 32 MW. This reliance on coal persists even as Montenegro seeks to expand its investments in solar, wind, and energy storage technologies.
The daily pricing trend exhibited unusual firmness throughout the trading session. The minimum hourly price on BELEN reached €80/MWh at hour 12, a considerable rise from just €22.10/MWh the previous day. The evening peak price escalated to €200/MWh at hour 22. Average peakload prices were recorded at €110.20/MWh, while off-peak electricity prices were higher at €143/MWh due to increased demand during late evening hours.
This pricing dynamic poses challenges for solar energy producers who sell unshaped production, as they would be more susceptible to lower prices during the daytime. Conversely, energy storage solutions capable of supplying power during peak hours could benefit from a price differential of up to €120/MWh between daily minimum and maximum rates.
Montenegro continues to function as a transit market for electricity. Recent commercial data indicated average inflows of approximately 182 MW from Bosnia and Herzegovina, 72 MW from Serbia, 111 MW from Albania, and 124 MW from Kosovo. Conversely, exports towards Italy averaged around 338 MW via the submarine interconnector. These inflows are significantly greater than the national deficit since Montenegro imports electricity from various Balkan markets while also exporting to the more lucrative Italian market.
The capacity landscape for August further underscores the importance of Montenegro’s cross-border connections. Available transfer capacities include 200 MW from Bosnia and Herzegovina, 100 MW from Kosovo, and 50 MW from Albania into Montenegro. In the opposite direction, there is also a capacity of 200 MW available towards Bosnia and Herzegovina, alongside capacities of 100 MW towards Kosovo and 51 MW towards Albania. Transmission rights for July from Serbia into Montenegro were valued at approximately €6.51/MWh, while those from Bosnia and Herzegovina were priced at about €5.20/MWh.
For EPCG and private developers operating in Montenegro’s energy sector, the implications of the recent BELEN price increase are complex. While there is a clear need for additional generation capacity, the economic viability of new projects will depend on their production profiles, balancing positions, and access to connections with Italy. Wind energy may provide higher value compared to solar due to its ability to generate outside peak daytime hours; however, it still requires careful management regarding curtailment and transmission logistics. Energy storage systems can leverage evening pricing premiums but must ensure that their discharge capabilities align with peak regional demands and tourism-related electricity use.
