Abu Dhabi-based renewable energy developer Masdar and Montenegro’s national power utility Elektroprivreda Crne Gore (EPCG) have signed an agreement to assess the formation of a joint venture focused on development of large-scale renewable energy projects in Montenegro.
The agreement was signed during Abu Dhabi Sustainability Week 2026 and outlines cooperation on the development, construction, ownership, and operation of clean energy assets across multiple technologies. These include solar photovoltaic generation, onshore wind, hydropower projects, battery energy storage systems, and hybrid power solutions.
Under the proposed framework, Masdar and EPCG will evaluate opportunities to deploy utility-scale renewable projects designed to strengthen Montenegro’s domestic electricity supply while enabling cross-border power exports.
The collaboration will also assess the use of Montenegro’s existing subsea electricity interconnection with Italy, which provides access to European power markets and supports regional energy trading.
Hydropower remains a strategic component of Montenegro’s energy mix, and EPCG currently operates several major hydroelectric facilities. The joint venture framework allows for modernisation and expansion of renewable capacity alongside new solar and wind developments.
The partners stated that the cooperation is intended to support Montenegro’s role as a regional renewable energy exporter, supplying electricity to neighbouring Balkan markets and Southeast Europe.
According to Masdar Chief Executive Officer Mohamed Jameel Al Ramahi: “Partnerships like this demonstrate how pragmatic collaboration can accelerate the global energy transformation while strengthening energy security and economic resilience. This agreement reflects Masdar’s disciplined approach to expansion in strategic markets with strong fundamentals and long-term growth potential.”
Montenegro’s Energy and Mining Minister Admir Šahmanović said the partnership supports the country’s long-term transition strategy: “Through investments in renewable energy sources, Montenegro is taking an additional step toward the gradual phase-out of coal and the transition to clean energy.”
EPCG Board President Milutin Đukanović highlighted the importance of international partnerships as Montenegro prepares for regulatory changes such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).
He said: “In the context of the upcoming implementation of the CBAM mechanism, it is essential to accelerate investments in the energy sector.”
EPCG Chief Executive Officer Zdravko Dragaš added that the agreement strengthens the utility’s role in regional power markets: “Our shared goal is for Montenegro, in addition to meeting its own consumption needs, to become a reliable exporter of green energy to the region and beyond.”
Masdar already operates renewable assets in Montenegro, including its 72 MW Krnovo Wind Farm commissioned in 2018. The project remains the country’s largest operational wind power facility.
The proposed joint venture also aligns with Masdar’s wider expansion across Southeast and Central Europe, including its acquisition of Greek renewable energy platform TERNA ENERGY in 2025.
The agreement follows the UAE–Montenegro Energy Cooperation Agreement signed in November 2025, which established a broader framework for bilateral cooperation in power generation, infrastructure development, and clean energy investment.
