EBRD backs expansion of Montenegro wind farm with €26 million loan

The new financing will enable the installation of three additional wind turbines, increasing the site’s capacity from 55 MW to 75 MW and making Gvozd the largest wind farm in Montenegro once operational. The expanded facility will generate 186 GWh of clean electricity annually – enough to power more than 35 000 households – and reduce CO₂ emissions by nearly 137 000 tpy.

The project, which is being developed by Montenegro’s national electricity utility, Elektroprivreda Crne Gore (EPCG) and its subsidiaries, is the first multi-contract wind farm to be implemented with a public utility under the EBRD’s Procurement Policies and Rules. It is also the first EBRD-financed wind project to receive extension financing during construction, reflecting the bank’s flexible and long-term commitment to impactful green infrastructure.

The original €82 million loan for Gvozd was signed in 2023 and is a milestone project for EPCG, being its first major new-generation asset in over 40 years, as well as its first wind farm.

Remon Zakaria, EBRD Head of Montenegro, responded: “We are proud to deepen our partnership with EPCG and support the expansion of Montenegro’s flagship renewable energy project. The Gvozd wind farm demonstrates how flexible, long-term financing can deliver real impact – both by increasing clean energy generation and by setting new benchmarks in project implementation. This additional investment underlines our commitment to accelerating Montenegro’s green energy transition and strengthening its energy security.”

EPCG CEO, Ivan Bulatovic, commented: “The energy sector is key for the overall development and progress of the Montenegrin economy and the Gvozd wind farm, with its extension, is a large and important project for us – the biggest wind farm in Montenegro. Gvozd is not just another construction project, but also a symbol of progress, vision, and determination to build a sustainable future. It represents a significant step towards sustainable development and is recognised as one of the key steps towards the green energy transition and enlargement of the energy independence of Montenegro.”

Bulatovic added: “We are very proud of our co-operation with the EBRD and we hope it will continue. The Gvozd wind farm is a cornerstone of Montenegro’s decarbonisation strategy and supports the country’s alignment with EU climate goals. The project benefits from a strong policy framework, including Montenegro’s new law on the use of energy from renewable sources, developed with EBRD support.”

With construction of Gvozd’s original 55 MW phase already underway and turbine delivery is expected in 2025, the site’s capacity extension is able to be seamlessly integrated into the existing project timeline. Commissioning of the full 75 MW is expected by the end of 2026.

Francesco Corbo, the EBRD’s Regional Head of Energy for the Western Balkans and Croatia, concluded: “As well as the partnership with EPCG, the EBRD is proud to support Montenegro’s green transition by supporting private investments in renewable energy generation through our Renewable Energy Market Accelerator (REMA) programme. Through this programme we have helped the authorities to pave the way for the country’s first renewable energy auction, a landmark 250?MW solar photovoltaics initiative that reflects our deep commitment to building a sustainable, diversified energy future for Montenegro.”

The EBRD is a leading institutional investor in Montenegro, with more than €1 billion invested through 100 projects, supporting the country’s sustainable development, infrastructure, private-sector growth, and regional integration.

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