Montenegro’s electricity import bill has fallen to less than €42 million so far in 2026, from almost €182 million in 2025, as domestic generation recovered following the prolonged reconstruction of the Pljevlja thermal power plant.
Energy Minister Admir Šahmanović said the sharp decline reflected a stronger domestic electricity balance after last year’s unusually heavy dependence on imports.
The roughly €140 million reduction highlights how strongly Montenegro’s trade and utility finances can move when one large generating asset is unavailable.
The Pljevlja thermal power plant was out for an extended period during 2025 for reconstruction and environmental works, forcing electricity utility EPCG to cover more demand from regional markets.
That exposed the company to wholesale electricity prices and cross-border availability at a time when hydrological conditions were also important for the country’s hydro-heavy generation mix.
With Pljevlja back in operation, that exposure has fallen sharply.
For EPCG, lower import costs improve cash flow and reduce the risk that expensive wholesale purchases have to be absorbed through the utility’s balance sheet.
For Montenegro, the effect also appears in the trade balance because imported electricity can become one of the country’s more volatile import items.
The improvement does not remove the underlying structural problem.
Montenegro still relies on a combination of coal, hydropower and electricity imports, with generation varying significantly depending on rainfall, plant availability and market conditions.
The government is therefore trying to accelerate renewable development.
Šahmanović said Montenegro has issued 65 urban-technical conditions for solar and wind projects, while around 10 large projects are considered realistically capable of progressing toward implementation.
The difference between those two figures is important.
Montenegro has accumulated a large nominal renewable pipeline, but only a portion is likely to overcome land, planning, grid, financing and permitting constraints.
The market increasingly distinguishes between announced capacity and projects capable of reaching construction.
Grid availability remains one of the main filters.
New wind and solar plants cannot be developed at scale without transmission and balancing capacity.
That is why projects involving CGES, battery storage and new cross-border connections are becoming as important as generation itself.
The government has reiterated plans for a second subsea electricity cable between Montenegro and Italy.
The existing interconnector already gives the country direct access to the Italian market and forms part of the wider Balkan electricity corridor.
A second cable could materially increase Montenegro’s strategic role in regional electricity trading if matched by new renewable generation and stronger domestic transmission.
But the investment case depends on more than export potential.
Montenegro first needs enough reliable generation and flexibility to manage its own system without excessive dependence on imports.
The sharp difference between the €182 million import bill in 2025 and less than €42 million this year shows why.
Electricity imports are not inherently problematic.
They are a normal part of an integrated regional market and can be economically efficient when imported power is cheaper than domestic generation.
The problem arises when imports become mandatory because domestic capacity is unavailable, leaving the buyer exposed to whatever price the market offers.
That is what happened during the Pljevlja reconstruction.
The 2026 improvement therefore reflects recovered supply security as much as lower expenditure.
Hydropower remains the second major variable.
Montenegro has substantial hydro capacity, but dry years can sharply reduce production.
That creates a different kind of volatility from coal outages.
Renewables can help diversify the system, but wind and solar introduce their own variability.
That makes storage and regional interconnection increasingly central.
The government is also building mandatory oil-product reserves, with Šahmanović saying around 40% of the required target has now been accumulated.
The final system is intended to cover 90 days of supply.
That reserve programme is separate from electricity generation but forms part of the wider energy-security strategy.
Current household electricity prices are expected to remain unchanged, according to the minister.
That may be easier to sustain while EPCG’s import bill remains low.
A return to heavy imports during a dry year or major plant outage would make the position more difficult.
The country is simultaneously preparing the energy transition in Pljevlja.
A €50 million World Bank-supported district-heating programme is intended to reduce pollution and support the municipality’s transition away from dependence on the coal complex over time.
That creates a difficult policy balance.
Montenegro still needs Pljevlja today to avoid large electricity imports, even while it prepares for a future in which the plant’s role must decline.
The 2025-2026 import numbers capture that tension clearly.
When Pljevlja was largely unavailable, Montenegro spent close to €182 million importing electricity.
With domestic supply recovering, the bill has fallen by more than three quarters.
The strategic objective is therefore not simply to close coal generation.
It is to build enough replacement generation, storage, transmission and flexibility that the country does not recreate the 2025 import exposure when Pljevlja eventually leaves the system permanently.
For now, the 2026 electricity balance is materially stronger.
The next test is whether Montenegro can use that breathing room to convert part of its renewable pipeline into operating assets before another outage, drought or market shock pushes the import bill higher again.
