Masdar and Montenegro’s state-owned utility Elektroprivreda Crne Gore (EPCG) have signed an agreement to explore the joint development of more than 400MW of pumped storage hydropower projects as part of a wider partnership targeting up to 2GW of renewable energy capacity in Montenegro.
The framework agreement covering pumped storage was signed alongside joint development agreements for two solar photovoltaic projects with a combined capacity of 150MW. The projects are the first to move forward under a planned 50:50 joint venture announced by the two companies in April 2026.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar, 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.”
According to Masdar and EPCG, the proposed pumped storage projects would provide more than 400MW of energy storage capacity to support the integration of renewable energy, while improving the flexibility, stability and resilience of Montenegro’s electricity system.
His Excellency Admir Šahmanović, Montenegro’s Minister of Energy and Mining, 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 more stable energy supply for the economy, and create the conditions for green energy to become one of Montenegro’s most significant export products.”
The wider joint venture will explore utility-scale renewable energy projects including solar, wind, hydropower, pumped storage, battery energy storage and hybrid systems. It aims to develop up to 2GW of renewable energy capacity to meet growing domestic electricity demand while creating opportunities to export electricity to neighbouring countries in the Western Balkans and Southern Europe through Montenegro’s existing subsea electricity interconnection with Italy.
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.”
The initial projects being developed by the joint venture are the 115MW Štedim solar PV project and the 35MW Krupac solar PV project.
Milutin Đukanović, Chairman of the Board of Directors of EPCG, 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, Chief Executive Officer of EPCG, added: “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.”
Masdar said it has experience in developing pumped storage through its 2025 acquisition of TERNA ENERGY, which is developing the 680MW Amfilochia pumped storage project in Greece. The company has also been active in Montenegro since 2018 through its investment in the 72MW Krnovo Wind Farm.
