Montenegro has officially begun the construction of the “Gvozd” wind farm, marking a significant step in the country’s energy transition. The project, valued at 82 million euros and financed by a loan from the European Bank for Reconstruction and Development (EBRD), is set to be completed within 18 months. Once operational, the wind farm will provide energy for around 25,000 households and reduce CO2 emissions by 104,000 tons annually, equivalent to the emissions of 62,000 cars.
Project funding and goals
EPCG (Electric Power Company of Montenegro) is fully financing the construction of the wind farm and the necessary infrastructure using loan funds, ensuring the project will pay for itself through the grace period provided during construction. The wind farm, with a capacity of 54 megawatts, will produce approximately 150 GWh of clean energy annually, improving Montenegro’s energy balance and making the company more competitive in the market.
Historical milestone
This is the first power plant project built by Montenegro in over 40 years. EPCG plans to continue expanding with a second phase, the “Gvozd II” wind farm, in collaboration with its Croatian partner Ivica.
Local and national impact
The new wind farm will strengthen Montenegro’s energy sector and create new jobs, while improving local infrastructure. Nikšić, the municipality hosting the project, is set to become the largest producer of electricity per capita in the region. This marks a significant shift toward sustainable energy, moving away from traditional energy production models.
Minister’s vision
Montenegro’s Energy Minister, Saša Mujović, highlighted that the project is a part of a broader energy transition and national commitment to renewable energy. He emphasized that the country is embracing solar and wind power, as well as energy storage systems, to optimize its energy use. The Gvozd Wind Farm is part of efforts to replace outdated energy capacities, such as the Pljevlja Thermal Power Plant.
Future developments
Alongside the wind farm, Montenegro is planning further energy projects, including the construction of a new hydroelectric power plant, Kruševo, within the next two years. The government also signed contracts with contractors and German company Nordex for the supply and installation of the wind turbines for Gvozd.
The project includes constructing transmission lines and transformer stations to connect the wind farm to the national grid, and is expected to boost Montenegro’s role in the regional energy market.
