Masdar and Elektroprivreda Crne Gore (EPCG) have agreed to establish a 50/50 joint venture to develop renewable energy projects in Montenegro, with hydropower and pumped storage expected to play a central role in strengthening system flexibility and regional energy security.
The agreement, signed at the Adria Future Summit, sets out plans for a portfolio spanning solar PV, wind, hydropower and pumped hydro energy storage, alongside battery systems and hybrid configurations. The JV will be headquartered in Nikšić.
The partners said the initiative is designed to meet Montenegro’s domestic demand while enabling exports to the Western Balkans and Southern Europe, including via the country’s existing subsea interconnection with Italy. Hydropower and pumped storage are expected to underpin this strategy by providing dispatchable capacity and balancing variable renewables.
“This partnership represents a turning point for the energy future of Montenegro,” said Admir Šahmanović, Minister of Energy and Mining. “By joining the forces, Masdar and EPCG bring together global knowledge, strong national capacity and a shared ambition to speed up the transition towards clean energy… The time for planning is behind us; the time for implementation, development and concrete actions is ahead of us.”
Masdar, which is targeting 100GW of global capacity by 2030, described Europe as a key growth market. The company said the JV builds on earlier agreements reached during Abu Dhabi Sustainability Week 2026 and reflects a broader push into Southeast and Central Europe.
“Europe is a strategic growth market for Masdar as we advance towards our 100GW by 2030 target,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “We are pleased to return to Montenegro to sign this joint venture agreement with EPCG… We are proud to work alongside the Government of Montenegro and EPCG in advancing the country’s energy transformation and contributing to energy security and sustainable economic growth across the region.”
EPCG said the partnership would accelerate the modernisation of its generation fleet, with hydropower upgrades and new pumped storage capacity likely to be critical to managing increased renewable penetration.
“EPCG’s strategic commitment to the deployment of sustainable energy solutions and the modernization of our generation portfolio is confirmed by this partnership with Masdar,” said Milutin Đukanović, resident of the Board of Directors of Elektroprivreda Crne Gore. “Through the JV we will enhance capacities for clean energy generation and additionally strengthen our operational and development competencies.”
The utility added that combining domestic hydropower expertise with Masdar’s international project development experience would support more complex schemes, including storage-led projects.
“This cooperation represents a significant step forward in implementation of our development plans in the field of renewable energy and further diversification of generation sources,” said Zdravko Dragaš, Chief Executive Officer of EPCG. “By combining knowledge, experience and resources with a globally renowned partner, we are creating a solid basis for the implementation of complex and technologically advanced projects.”
The JV also builds on Masdar’s existing footprint in Montenegro, including its investment in the Krnovo wind farm, and complements its regional expansion through its TERNA ENERGY platform.
