Montenegro’s state utility Elektroprivreda Crne Gore has disclosed that €333 million has been paid to privileged renewable energy producers under legacy incentive schemes, highlighting the long-term financial impact of contracts established under the former Democratic Party of Socialistsadministration.
According to EPCG, the payments were made primarily for the guaranteed purchase of electricity from renewable projects under feed-in tariff structures, with costs largely borne by the utility and ultimately transferred to consumers through the electricity system.
A central example is the Možura Wind Farm, where 753,503 MWh of electricity generation resulted in total payments of approximately €72.3 million, implying an average purchase price of around €96/MWh. In contrast, the same volume of electricity delivered to end-users was valued at roughly €44–45/MWh, creating a negative spread exceeding €38.5 million within the domestic supply system.
Across the broader system, EPCG indicates that while €333 million has been paid out to privileged producers, the utility has generated only about €140 million in downstream revenue from selling that same electricity to consumers, reflecting a structural mismatch between procurement costs and regulated retail pricing.
The contractual framework underpinning these arrangements remains in force, with key agreements—particularly for Možura—extending until 2031, effectively locking in above-market or administratively set tariffs for several more years.
EPCG argues that the model transferred market risk away from producers and onto the public system, allowing renewable generators to benefit from guaranteed pricing while the utility absorbed volatility between procurement costs and regulated supply tariffs. The company also notes that producers had the option to switch to market-based sales but largely retained the guaranteed scheme due to its more predictable returns.
The financial dynamics are further shaped by market distortions observed during the 2022 energy crisis. While spot prices on exchanges such as Hungary’s HUPX temporarily exceeded contracted tariffs—producing a nominal positive spread of around €21.6 million—this effect was largely confined to that single year. Excluding 2022, the cumulative market comparison turns negative, reinforcing EPCG’s position that the system does not reflect a sustainable market-based structure.
Within Montenegro’s energy transition framework, the case illustrates a broader regional pattern where early renewable support schemes—designed to accelerate deployment—are now translating into long-duration financial obligations, particularly in systems with regulated end-user tariffs and limited wholesale market pass-through.
