• Masdar and EPCG have moved their Montenegro partnership into execution with agreements covering 150MW of solar capacity.
• The companies will also explore more than 400MW of pumped hydro storage to support grid flexibility and renewable integration.
• Their planned 50/50 joint venture targets up to 2GW of renewable energy capacity, with potential exports across the Western Balkans and Southern Europe.

Masdar and Montenegro’s national power utility EPCG are moving their planned 2GW renewable energy partnership into project execution.

The companies signed joint development agreements covering 150MW of solar capacity. They also agreed to explore more than 400MW of pumped hydro energy storage.

The projects are the first to advance under a 50/50 joint venture agreed in April 2026. The platform is intended to expand Montenegro’s renewable generation, strengthen energy security and support future electricity exports.

First solar projects move forward

The joint development agreements cover two solar photovoltaic projects.

The larger Štedim project will have planned capacity of 115MW. The Krupac project will add another 35MW.

Together, the developments provide the first 150MW within a much larger pipeline. Masdar and EPCG are targeting up to 2GW of renewable energy capacity across Montenegro.

Their planned portfolio could include solar, wind, hydropower, pumped hydro, battery storage and hybrid energy systems.

The partnership comes as Montenegro seeks to convert its renewable resource potential into large-scale infrastructure. New generation could help meet domestic demand while reducing exposure to energy supply pressures.

The projects could also strengthen Montenegro’s role in regional electricity markets.

Pumped hydro targets grid flexibility

Masdar and EPCG also signed a framework for action agreement covering potential pumped hydro developments with more than 400MW of capacity.

Pumped hydro stores electricity during periods of excess supply. It can then release power when demand rises or renewable generation falls.

That capability could become increasingly important as Montenegro adds more variable renewable generation.

Storage can reduce pressure on electricity networks while improving system stability and resilience. It can also help countries make greater use of solar and wind generation without relying solely on fossil fuel backup.

For investors, the inclusion of storage broadens the partnership beyond renewable generation assets. It creates a potential infrastructure platform spanning power production, grid balancing and regional electricity trading.

Montenegro targets regional electricity exports

The 2GW partnership also has a cross-border dimension.

Masdar and EPCG have said the platform could eventually support renewable electricity exports to the Western Balkans and Southern Europe.

Montenegro already has a subsea electricity interconnection with Italy. That infrastructure could provide a route into larger European power markets as new generation comes online.

The agreements were signed in Tivat in the presence of UAE Minister of Industry and Advanced Technology and Masdar Chairman Dr. Sultan Ahmed Al Jaber, and Montenegro Minister of Energy and Mining Admir Šahmanović.

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“Europe’s demand for reliable, affordable energy is rising, and the need for new capacity has never been clearer. Today’s agreements reflect Masdar’s ability to bring global expertise, proven technology and long-term investment to markets with strong growth potential. They also mark an important step in the deepening relationship between the UAE and Montenegro. By working with our partners to deliver high-quality energy infrastructure, Masdar is supporting Montenegro’s energy security and creating a strong platform for sustainable economic growth.” – His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar.

Šahmanović said the agreements show Montenegro is beginning to turn longstanding renewable energy ambitions into investable projects.

“For years, we have been talking about Montenegro’s exceptional potential in the field of renewable energy sources. Today, we can say that we have created the conditions for this potential to become concrete projects. Just three months after the establishment of the joint company, we are moving into the phase of implementing the first projects, which is the best confirmation of the seriousness of this partnership and the trust that one of the world’s leaders in clean energy has placed in Montenegro.” – His Excellency Admir Šahmanović, Minister of Energy and Mining of Montenegro

Strategic infrastructure moves into focus

For Montenegro, the partnership links energy policy with infrastructure investment and regional market integration.

For Masdar, it expands a European development pipeline through a state-backed utility partnership.

The combination of renewable generation, storage and cross-border infrastructure could also give Montenegro greater influence within Southeast Europe’s evolving power market.

Execution will now be the central test. If the wider 2GW pipeline progresses, Montenegro could move from a relatively small electricity system toward a more strategically connected renewable energy platform serving both domestic and European demand.