Montenegro’s efforts to expedite renewable energy development have sparked significant local concerns regarding land rights, environmental protection, and the distribution of transition costs. Recent amendments passed by the parliament aim to streamline planning, environmental assessments, and construction processes for renewable energy projects, including wind and solar installations. However, residents near Brezna have raised alarms that these changes disproportionately favor developers at the expense of private landowners and community resources.
The Save Brezna civic initiative has voiced strong opposition to modifications in the Law on the Use of Energy from Renewable Sources and related spatial-planning regulations. The initiative claims that the new legal framework enables the government to designate extensive areas for rapid renewable energy projects, reduces environmental review processes, and prioritizes private generation projects as matters of overriding public interest.
The implications of these legal adjustments extend beyond local concerns. The Brezna area is undergoing a significant upgrade from a 110/35 kV substation to a 400/110/35 kV transmission node, with plans to support an additional 400 MW of renewable capacity. This enhancement is funded by a sovereign-guaranteed loan of €28 million from the European Bank for Reconstruction and Development (EBRD), supplemented by grants from the Western Balkans Investment Framework.
This infrastructure project involves two 300 MVA transformers, substation expansions, and integration with Montenegro’s developing 400 kV ring. It is projected to decrease network losses by around 13 GWh annually, translating to over €1 million in savings at current wholesale electricity prices while also reducing CO₂ emissions by approximately 6,000 tonnes.
Brezna serves as both a critical public transmission investment and a hub for privately developed energy generation. The challenge lies in delineating the public interest associated with infrastructure improvements from that related to private energy projects. A transmission facility that enhances national energy security is clearly public interest-focused, unlike individual wind turbines or solar panels that may utilize the same infrastructure.
A key project in this context is the Bijela wind farm, developed by Alcazar Energy Partners, which will feature 118.8 MW of capacity primarily located in the municipality of Šavnik. The project plans to install 17 turbines, along with necessary access roads and internal connections, culminating in a 110 kV transmission line linking it to Brezna.
The project’s environmental impact assessment was approved in February 2026, with an expected annual output of about 350 GWh, yielding a capacity factor of approximately 33.6 percent. Alcazar acquired this venture from local firms Simes Inženjering and Sistem MNE in 2023, with estimated investment costs ranging between $200 million and €185 million.
A connection agreement with transmission operator CGES was signed in September 2024, followed by negotiations for a power-purchase agreement with state utility EPCG initiated after a memorandum in January 2025. Alcazar anticipates its total investment in Montenegro could reach $500 million, indicating an intention to develop a broader regional portfolio rather than viewing Bijela as an isolated project.
Local residents have reported that land acquisition processes for the wind project are underway, with compensation offers reportedly low—sometimes only tens or hundreds of euros for rights lasting up to 30 years. This situation highlights potential inequities within the current regulatory framework as landowners may face long-term restrictions while projects valued at hundreds of millions of euros proceed.
The amendments do not abolish ownership rights or compensation requirements outright; however, they shift the burden onto residents to prove that proposed developments will cause unmitigated harm. Article 11e of the amended legislation presumes that renewable energy projects serve an overriding public interest, aligning closely with EU directives aimed at facilitating renewable energy growth.
The Montenegrin government asserts that adopting these provisions aligns with EU obligations under the Energy Community framework. Nonetheless, Save Brezna contests this assertion, arguing that Montenegro’s commitments are more closely tied to earlier directives rather than immediate compliance with RED III standards.
The new regulations also introduce tight decision-making timelines—45 days for larger projects and 30 days for smaller ones—within designated renewable zones. While this could expedite processes, it raises concerns regarding thorough environmental assessments necessary before designating areas for rapid development.
This concern is particularly relevant given that numerous planned projects exceed Brezna’s stated capacity for integration into the grid, including initiatives like the proposed Dubrovska–Duži solar project, which has a nominal capacity of 195 MW. As of late 2024, CGES had already signed six agreements for renewable connections targeting approximately 1,327 MW.
Brezna’s expansion is just one component in Montenegro’s broader grid development strategy, which requires further enhancements across other areas to manage increased capacity effectively. The country’s electricity consumption remains modest compared to potential renewable output from new installations.
The undersea cable linking Montenegro to Italy could facilitate exports; however, regional production dynamics may limit export capabilities during peak generation periods across neighboring countries. Additionally, wind and solar power generation present distinct challenges regarding curtailment strategies due to their varying production profiles.
The first solar auction in Montenegro aims for up to 250 MW, establishing a ceiling price at €65/MWh. Initial estimates suggest substantial capital investments are needed for large-scale solar developments, prompting discussions about potential revenue-sharing models to benefit local communities affected by these projects.
This evolving landscape indicates that while Montenegro has considerable potential for renewable energy expansion—highlighted by identified capacities for both wind and solar—the successful realization of these projects hinges on managing community impacts and ensuring comprehensive planning that addresses both economic viability and stakeholder interests.
The financial feasibility of these developments will depend heavily on timely execution and effective regulatory frameworks that balance local interests against national energy goals. As such, further engagement with communities will be essential in navigating these complex dynamics moving forward.
