Masdar, EPCG advance 2GW partnership in Montenegro with first solar and energy-storage projects

Abu Dhabi Future Energy Company PJSC – Masdar and Elektroprivreda Crne Gore (EPCG), Montenegro’s national power utility, have advanced their strategic partnership into project execution with agreements covering 150 megawatts (MW) of solar capacity and the potential development of over 400MW of pumped hydro energy storage.

The agreements represent the first projects to be progressed through the 50/50 joint venture to be established by Masdar and EPCG after the Joint Venture Agreement (JVA) signing in April 2026.

The joint venture is targeting up to 2 gigawatts (GW) of renewable energy capacity in Montenegro, creating a platform to meet growing domestic electricity demand, strengthen national energy security and support future exports to neighbouring European markets.

The JDAs cover the Štedim solar photovoltaic (PV) project (115MW) and the Krupac solar PV project (35MW).

Masdar and EPCG also signed a framework for action (FFA) agreement to explore the joint development of over 400MW of pumped hydro energy storage projects. By storing electricity when supply exceeds demand and releasing it when required, pumped hydro could enable Montenegro to integrate more renewable power while improving the flexibility, stability and resilience of its electricity system.

In the presence of Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Masdar, and Admir Šahmanović, Montenegro Minister of Energy and Mining, the agreements were signed in Tivat, Montenegro, by Milutin Đukanović, Chairman of the Board of Directors of EPCG; Zdravko Dragaš, Chief Executive Officer of EPCG; and Husain Al Meer, Executive Director, Global Offshore Wind and UK Business, Masdar.

Dr. Sultan Al Jaber said, “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.”

Šahmanović said, “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."

He added, “Through this partnership, we are not only building new energy capacities; we are building a safer, stronger, and more competitive Montenegro. We are launching investments worth hundreds of millions of euros that will strengthen our energy security, create new jobs and new development opportunities for our citizens, ensure a more stable energy supply for the economy, and create the conditions for green energy to become one of Montenegro’s most significant export products.”

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, “These agreements mark an important step for Masdar in Montenegro and a significant progression in our partnership with EPCG. By combining Masdar’s global development expertise, investment capability and track record in delivering large-scale renewable energy projects with EPCG’s market leadership and deep operational knowledge, we are creating a strong platform for long-term growth.

"Together, we aim to diversify Montenegro’s generation mix, strengthen energy security, improve system stability and flexibility, and unlock wider economic value for the country and the region."

He added that the Balkans, Southeast Europe and Central Europe are important growth markets for Masdar "as we advance toward our target of 100GW of global renewable energy capacity by 2030. We look forward to deepening our collaboration with EPCG and the Government of Montenegro to deliver high-impact projects that support Montenegro’s growth ambitions and reinforce its position as a regional energy leader.”

Đukanović said, “Cooperation with Masdar represents an important step towards achieving our vision of a modern and sustainable energy sector. By establishing a joint venture, we are creating the conditions for the implementation of new renewable energy projects, while simultaneously strengthening our professional capacities and improving EPCG’s operations.

"The signed agreements on the joint development of the Krupac and Štedim solar power plants, as well as the Framework Agreement for Cooperation in Hydroenergy, mark the beginning of the creation of a joint generation portfolio of EPCG and Masdar, which will be further developed and expanded in the coming period. We are confident that this cooperation model will bring both short-term and long-term value to the company and to Montenegro.”

Zdravko Dragaš stated, “Partnership with Masdar opens a new chapter in EPCG’s development and our investment plans in the field of green energy. By combining international experience with local expertise, we are creating a solid foundation for the implementation of demanding projects that will contribute to increasing electricity generation from renewable energy sources.

"Today’s signing of three agreements lays the foundation for long-term cooperation through the joint development of projects and the creation of a generation portfolio that will continue to expand with new investments in the years ahead. We expect this cooperation to further strengthen the energy transition process, enhance the company’s competitiveness and create new opportunities for the development of Montenegro’s economy.”

The joint venture established by Masdar and EPCG will explore utility-scale projects across solar, wind, hydropower, pumped hydro, battery storage and hybrid energy technologies.

The platform is intended to serve Montenegro’s growing domestic energy requirements while creating opportunities to export renewable electricity to the Western Balkans and Southern Europe. Montenegro’s existing subsea electricity interconnection with Italy provides a potential route into the wider European power market.

Masdar has been active in Montenegro since 2018 through its investment in the 72MW Krnovo Wind Farm, the country’s largest operating wind project.

Europe is a key strategic market for Masdar as it targets global portfolio capacity of 100GW by 2030. TERNA ENERGY, which Masdar acquired in 2025, is developing the 680MW Amfilochia project, one of the largest pumped hydro storage projects in Europe, providing relevant technical and development experience for the opportunities being assessed in Montenegro.

Masdar has a diversified global portfolio of more than 65GW, spanning both established and high-growth renewable energy markets and covering the full spectrum of renewable technologies, including solar, onshore wind, offshore wind, battery energy storage and hybrid solutions.

Masdar continues to expand its global platform through disciplined growth across priority markets, delivering reliable, affordable clean power to meet the world's rapidly growing electricity demand.

WAM