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Masdar said in a statement that the launch of the initial solar photovoltaic and battery energy storage projects represents a concrete step forward in a collaboration first agreed in January. The Abu Dhabi developer and Montenegro’s state-owned utility EPCG aim to deliver clean power that supports domestic needs while opening opportunities for electricity exports across Southeast Europe. According to the statement the projects form the starting point for a wider pipeline targeting a combined 2GW of capacity across several technologies.
A Reuters report from January detailed how the two parties agreed to explore a joint venture focused on solar, wind, hydropower, battery storage and hybrid systems. Montenegro’s energy ministry indicated at the time that the initiative would help satisfy local demand and allow green electricity to flow through the country’s undersea interconnection with Italy to broader regional markets. The July 28 announcement confirms that planning for the first facilities is now under way.
Masdar, a leading global developer of renewable energy with projects across multiple continents, brings technical and financial expertise in large-scale solar and storage deployments to the partnership. EPCG as Montenegro’s national power company oversees electricity generation, transmission and supply throughout the country. The two organisations plan to establish a dedicated joint venture to manage development activities and accelerate delivery of the full 2GW programme.
Industry assessments from the International Renewable Energy Agency underline the growing role of solar and storage solutions in Southeast Europe’s energy transition. Montenegro already derives a substantial share of its electricity from hydropower but diversification remains a priority to improve system flexibility and reduce seasonal variability. The new Masdar-EPCG projects are expected to contribute directly to those aims while aligning with wider EU-aligned decarbonisation objectives for the Western Balkans.
The energy storage component will be essential for balancing supply and demand on the grid, Masdar noted in its statement. Further details on individual project sizes, locations and timelines are anticipated as permitting and feasibility work progress. Subsequent phases are likely to incorporate wind and additional hydropower capacity to reach the overall 2GW target.
Data from the World Bank illustrate how international partnerships have helped modernise power infrastructure across the Western Balkans in recent years. UAE-based entities have figured prominently in several such investments, supporting both energy security and economic development in the region. The Masdar-EPCG collaboration fits this pattern and is expected to draw on best practices in project execution and local capacity building.
