The completion of a feasibility study for an LNG-based power generation project by Elektroprivreda Crne Gore has reopened the debate on Montenegro’s long-term electricity security and system flexibility. The study concludes that gas-fired generation based on liquefied natural gas could be technically and economically viable, marking a notable shift in a system historically dominated by hydropower.
Montenegro’s electricity mix is structurally exposed to hydrological variability. In wet years, hydropower provides surplus generation and export potential; in dry years, the system becomes dependent on imports at volatile regional prices. This volatility has direct fiscal and macroeconomic implications, as electricity imports weigh on the trade balance and expose consumers and industry to price shocks.
An LNG-based power plant would primarily serve as a balancing and reliability asset rather than a baseload solution. Gas generation offers dispatchability, fast ramp-up capability, and predictable output, which complements both hydropower and the growing share of solar capacity planned in the system. From a system-planning perspective, this flexibility is increasingly valuable as Montenegro expands intermittent renewable generation.
The feasibility study reportedly assessed fuel supply logistics, plant sizing, grid integration, and cost structures under various price scenarios. While capital expenditure would be significant, operating costs are more predictable than those associated with emergency power imports during drought years. The economic case therefore rests less on average-year performance and more on avoided costs during stress periods.
However, LNG infrastructure introduces strategic trade-offs. Dependence on imported gas creates exposure to global LNG markets and geopolitical dynamics, even if supply routes are diversified. Environmental considerations also remain politically sensitive, as gas projects must be positioned within Montenegro’s climate commitments and EU-aligned transition framework.
The emergence of LNG in policy discussions does not signal a retreat from renewables. Rather, it reflects a pragmatic recognition that energy transition pathways in small systems require firm capacity to underpin variable generation. The key question is sequencing: whether regulatory, financial, and grid reforms can progress fast enough to integrate gas as a transitional stabilizer without crowding out investment in renewables and storage.
