The renewable-energy partnership between Masdar and Elektroprivreda Crne Gore has moved from a political framework into an identifiable project pipeline. Their equally owned joint venture has signed development agreements covering the 115 MW Štedim solar project, the 35 MW Krupac solar project and more than 400 MW of potential pumped-hydropower storage.
The two solar assets provide 150 MW of combined capacity. At current regional construction costs of approximately €600,000–€800,000 per MW, their indicative investment requirement would be in the €90mn–€120mn range, excluding major transmission reinforcement, land costs and financing during construction.
At Montenegro’s expected solar resource, the portfolio could generate approximately 210–240 GWh annually. The commercial value will depend on connection timing and the proportion of output exposed to wholesale markets. Solar production is becoming increasingly concentrated in the same midday hours across the Balkans, raising the probability of lower realised prices and curtailment as regional capacity expands.
The planned pumped-storage component changes the portfolio’s economics. A facility exceeding 400 MW could absorb low-priced electricity and release it during evening peaks, dry periods or regional scarcity. Depending on storage duration, reservoir engineering and underground works, capital expenditure could range from approximately €600mn to more than €1bn.
Pumped storage also carries a longer development cycle than solar. Geological studies, water rights, environmental assessment, grid modelling and civil engineering can require several years before a bankable construction decision. Revenue will need to combine energy arbitrage, balancing services, capacity value and cross-border trading rather than relying on a single power-purchase agreement.
The portfolio’s strongest commercial asset is Montenegro’s connection to Italy. Dispatchable renewable electricity delivered through the subsea interconnector can access a deeper and generally higher-priced market than Montenegro alone. Physical export value remains dependent on transmission availability, auction costs and competing flows from the Western Balkans.
A 12–18 month delay in grid connection could reduce an equity return on the solar component by approximately 1.5–3 percentage points, depending on leverage and whether debt accrues interest before commercial operation. Pumped storage may tolerate a longer timetable, but its absolute interest-during-construction exposure would be considerably larger.
