Montenegro’s state-owned power utility, Elektroprivreda Crne Gore (EPCG), has requested government approval for a long-term loan of up to €64.22 million to finance a portfolio of ten renewable energy projects, reinforcing the company’s role as the country’s primary investor in the energy transition. The proposed financing would support projects with a combined installed capacity of 95.87 MWp and expected annual electricity production of 124,518 MWh.
The investment portfolio includes the Solari 5000+ programme, the SE Željezara solar project, photovoltaic installations at the Vrtac, Slano and Krupac dams, the Kapino Polje L1, L2, B1 and B2 solar plants, together with the first phase of the Krupac 47 project. Collectively, these developments are intended to increase domestic renewable electricity production, strengthen Montenegro’s energy security and accelerate progress toward national decarbonisation objectives.
Financial projections submitted with the application indicate that the projects could generate approximately €20.7 million in annual revenue during their first full year of operation, while producing an estimated EBITDA of around €20 million. EPCG estimates an internal rate of return (IRR) of 30.44%, a net present value (NPV) of approximately €196.2 million, and a payback period of 3.29 years. Debt service indicators remain robust, with a projected DSCR of 2.21 and LLCR of 2.47, suggesting that project cash flows should comfortably support debt repayment.
The utility also emphasises that the financing would not require a state guarantee, with the projects expected to be serviced through their own operating cash flows and EPCG’s regular business activities. The company has already invested around €18.9 million of its own capital into the portfolio and argues that the new financing would improve liquidity by partially reimbursing those early investments. In the case of the Solari 5000+ programme, approximately 90% of the investment value is expected to be recovered from participating customers, significantly reducing EPCG’s effective credit exposure.
Updated financial data for the first quarter of 2026 also strengthens EPCG’s investment case. The company reported a net profit of approximately €38.5 million and EBITDA of around €45.8 million, demonstrating a recovery from the exceptional challenges experienced during 2025, when prolonged maintenance at the Pljevlja Thermal Power Plant and unfavourable hydrological conditions negatively affected financial performance.
While Montenegro’s Ministry of Finance acknowledged that the projects represent commercially viable green investments capable of servicing their own debt, it also highlighted the importance of prudent liquidity management and careful planning as EPCG enters a more capital-intensive investment cycle. Following its review of the updated financial results, however, the ministry concluded that the government could proceed with considering approval of the proposed borrowing.
The proposed financing represents another significant step in EPCG’s expanding renewable investment programme. Together with ongoing hydropower modernisation and previous investment initiatives, the new portfolio signals a strategic shift toward distributed solar generation and diversified renewable assets, positioning Montenegro to reduce electricity imports, improve energy resilience and align more closely with the European Union’s long-term energy transition objectives.
