Energies Media
Three months after forming a 50/50 joint venture, Masdar and Montenegro’s national utility EPCG have moved from partnership to pipeline. In Tivat in July 2026, the two companies signed joint development agreements for two solar PV projects—the 115 MW Štedim and 35 MW Krupac sites—totaling 150 MW, alongside a framework agreement to explore more than 400 MW of pumped hydro storage.
The signings mark the first project-level execution step of a venture targeting up to 2 GW of renewable capacity across Montenegro.
The joint development agreements cover two specific solar PV sites: the 115 MW Štedim project and the 35 MW Krupac project. Together they account for 150 MW of combined capacity—the first concrete assets to move through the JV pipeline.
Alongside the solar agreements, Masdar and EPCG signed a separate framework for action agreement to explore the joint development of more than 400 MW of pumped hydro energy storage. That agreement doesn’t commit to construction yet, but it sets the stage for detailed feasibility work on what could become a major grid-balancing asset for the country.
The signings took place in Tivat, with UAE Minister of Industry and Advanced Technology Dr. Sultan Ahmed Al Jaber and Montenegro’s Minister of Energy and Mining Admir Šahmanovic both in attendance. Signing for their respective organizations were EPCG Board Chairman Milutin Đukanović, EPCG CEO Zdravko Dragaš, and Masdar’s Husain Al Meer, Executive Director for Global Offshore Wind and UK Business.
The timing is worth noting. The Joint Venture Agreement was signed in April 2026—project-level agreements followed just three months later, a fast turnaround that both sides flagged as a signal of how seriously they are taking this.
This isn’t a one-off deal. Masdar and EPCG structured the JV as a scalable platform targeting up to 2 GW of renewable energy capacity across Montenegro over time, with solar, wind, hydropower, pumped hydro, battery storage, and hybrid solutions all in scope.
The rationale works on two levels. Domestically, Montenegro faces growing electricity demand and wants to strengthen its energy security. The country also sees a genuine opportunity to become a net exporter of renewable power to the Western Balkans and Southern Europe—two goals that reinforce each other rather than compete.
Each partner brings something distinct. Masdar carries global development expertise and a portfolio of more than 65 GW across established and emerging markets, while EPCG contributes market leadership, regulatory relationships, and deep operational knowledge of Montenegro’s energy system. That combination is designed to reduce execution risk on projects that would be harder for either party to pursue alone. Both EPCG’s chairman and CEO signaled that the current agreements are a starting point, with new projects expected to join the portfolio in the years ahead.
Pumped hydro storage works on a straightforward principle: pump water uphill when electricity supply exceeds demand, then release it through turbines when the power is needed. It’s one of the most proven forms of large-scale energy storage, and it fits particularly well on grids absorbing significant solar and wind capacity.
For Montenegro, that fit matters. Solar and wind generation is variable—output doesn’t always align with peak demand. Adding more than 400 MW of pumped hydro capacity would give the grid a meaningful buffer, letting operators absorb surplus renewable output and dispatch it when it’s actually needed rather than curtailing it.
Masdar isn’t approaching this from scratch. Through TERNA ENERGY—acquired in 2025—it’s already developing the 680 MW Amfilochia pumped hydro project in Greece, described as one of the largest of its kind in Europe. That gives Masdar direct technical experience with large-scale pumped hydro development in the region, experience that’s directly relevant to what’s now underway in Montenegro. Grid stability improvements aren’t just an operational priority here; they are also a prerequisite for Montenegro to credibly position itself as a renewable energy exporter.
Montenegro’s geography and existing infrastructure give it a real shot at becoming a regional clean energy hub. The country already has a subsea electricity interconnection with Italy—a direct route into the broader European power market that most Balkan countries can’t claim.
The JV is built with exports in mind. Both Masdar and EPCG have described the platform as a vehicle to supply not just domestic demand but neighboring markets across the Western Balkans and Southern Europe. Masdar’s presence in Montenegro actually predates this venture; the company has been active in the country since 2018 through its investment in the 72 MW Krnovo Wind Farm, currently the largest operating wind project in Montenegro, giving it established relationships and on-the-ground credibility.
The broader strategic picture matters too. Europe is a key growth market for Masdar as it works toward a global portfolio target of 100 GW by 2030, with the Balkans and Southeast Europe identified as priority regions within that push.
Here’s where things stand. Masdar and EPCG have a 50/50 joint venture targeting up to 2 GW of renewables in Montenegro. Three months in, they’ve signed development agreements for two solar projects—115 MW Štedim and 35 MW Krupac—and a framework agreement to explore more than 400 MW of pumped hydro storage.
The pumped hydro agreement is exploratory for now, but it addresses a real grid need. Masdar’s experience through TERNA ENERGY on the 680 MW Amfilochia project in Greece provides relevant technical grounding for what comes next in Montenegro.
The JV is designed to expand, with more projects expected to be added over time. The long-term goal: strengthen Montenegro’s energy security and enable renewable electricity exports to Italy and the wider European market.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.

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