EBRD Invests in Montenegro’s Green Future with Wind Farm Expansion
Montenegro’s renewable energy sector is getting a substantial boost as the European Bank for Reconstruction and Development (EBRD) commits an additional €26 million to expand the landmark Gvozd wind farm.
This extra financing will see the installation of three new wind turbines, pushing the site’s capacity from 55 MW to 75 MW, making Gvozd the largest operational wind farm in the country.
Once complete, the expanded facility will generate an impressive 186 GWh of clean electricity annually, meeting the energy needs of more than 35,000 households and cutting carbon emissions by nearly 137,000 tonnes each year.
A flagship project with strategic importance
Developed by Montenegro’s national electricity utility Elektroprivreda Crne Gore (EPCG) and its subsidiaries, Gvozd is the first multi-contract wind farm implemented with a public utility under the EBRD’s Procurement Policies and Rules. It’s also the first EBRD-financed wind farm to receive extension funding during construction, underlining the Bank’s willingness to provide flexible, long-term support for projects with high environmental and strategic impact.
The original €82 million financing, signed in 2023, marked EPCG’s first major new-generation project finance investment in over four decades and its debut in wind power. This expansion signals both the scale of Montenegro’s renewable ambitions and the importance of EBRD’s continued involvement.
Driving Montenegro’s energy transition
EBRD Head of Montenegro, Remon Zakaria, stressed the project’s significance: “We are proud to deepen our partnership with EPCG and support the expansion of Montenegro’s flagship renewable energy project. The Gvozd wind farm demonstrates how flexible, long-term financing can deliver real impact – both by increasing clean energy generation and by setting new benchmarks in project implementation. This additional investment underlines our commitment to accelerating Montenegro’s green energy transition and strengthening its energy security.”
EPCG’s CEO, Ivan Bulatović, echoed the sentiment: “The energy sector is key for the overall development and progress of the Montenegrin economy and the Gvozd wind farm, with its extension, is a large and important project for us – the biggest wind farm in Montenegro. Gvozd is not just another construction project, but also a symbol of progress, vision and determination to build a sustainable future.”
He added: “We are very proud of our successful cooperation with the EBRD and we hope it will continue. The Gvozd wind farm is a cornerstone of Montenegro’s decarbonisation strategy and supports the country’s alignment with EU climate goals. The project benefits from a strong policy framework, including Montenegro’s new Law on the Use of Energy from Renewable Sources, developed with EBRD support.”
Seamless integration into the project timeline
With construction on the original 55 MW phase already in progress and turbine deliveries expected this year, the capacity upgrade will be integrated smoothly into the ongoing works.
The full 75 MW installation is slated for commissioning by the end of 2026, ensuring minimal disruption to timelines while maximising output.
Linking to broader renewable initiatives
The EBRD’s support for Gvozd is part of a wider renewable energy push in Montenegro. Francesco Corbo, the EBRD’s Regional Head of Energy for the Western Balkans and Croatia, highlighted this strategic approach: “As well as the successful partnership with EPCG, the EBRD is proud to support Montenegro’s green transition by supporting private investments in renewable energy generation through our Renewable Energy Market Accelerator (REMA) programme.
“Through this programme we have helped the authorities to pave the way for the country’s first renewable energy auction, a landmark 250 MW solar PV initiative that reflects our deep commitment to building a sustainable, diversified energy future for Montenegro.”
Montenegro’s renewable energy landscape
Montenegro already generates a significant portion of its electricity from hydropower, but the diversification into wind and solar is essential for enhancing energy security and reducing seasonal dependency.
According to the International Renewable Energy Agency (IRENA), the Western Balkans possess untapped wind potential exceeding 10 GW, with Montenegro well positioned to be a regional leader.
This shift towards wind and solar aligns with the EU’s Green Deal objectives and the Energy Community’s 2030 decarbonisation targets, in which Montenegro is a signatory. By expanding Gvozd, the country is taking a clear step towards its National Energy and Climate Plan (NECP) goals.
EBRD’s wider role in Montenegro’s development
The EBRD remains one of Montenegro’s largest institutional investors, with over €1 billion channelled into more than 100 projects. Its portfolio spans sustainable infrastructure, private-sector growth, and regional integration.
Projects like Gvozd exemplify how strategic investment in clean energy can yield both environmental and economic benefits, enhancing resilience in the face of volatile global energy markets.
Building momentum for a sustainable future
The Gvozd expansion is more than an engineering project; it’s a milestone in Montenegro’s journey towards a cleaner, more self-reliant energy system. By combining strong policy frameworks, international financing, and technical expertise, the country is setting an example for renewable energy development in the Western Balkans.
As work progresses towards the 2026 completion, the partnership between EPCG and the EBRD is likely to remain a driving force for future clean energy projects, paving the way for additional investments in wind, solar, and battery storage technologies.
