Alcazar Energy, EPCG open talks on PPA for Montenegro’s biggest wind farm

Renewable energy investor Alcazar Energy Partners has signed a memorandum of understanding with Montenegrin state power utility Elektroprivreda Crne Gore (EPCG), initiating negotiations on a power purchase agreement (PPA) for electricity that will be produced by Alcazar’s future 118.8 MW Bijela wind farm.

Alcazar Energy acquired the rights to the Bijela wind farm project in September 2023. A year later, it signed a contract for the construction of infrastructure for connecting the facility to the grid.

A key component of the government’s 2040 National Development Strategy, Bijela will support Montenegro’s commitment to reducing greenhouse gas emissions, Alcazar said in a press release. The largest wind farm in Montenegro will provide clean energy to more than 16,000 households while preventing the release of up to 230,000 tons of CO2 annually, according to the statement.

The wind farm will provide green energy to more than 16,000 homes

The development of Bijela, backed by the European Bank of Reconstruction and Development (EBRD), will support Alcazar’s strategic expansion in the Western Balkans and it target of developing 1GW of renewable energy in the region, according to the statement.

“This partnership is continued evidence of our commitment to developing the largest renewable energy platform in the Western Balkans,” said Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy Partners.

The Bijela project supports Alcazar’s ambition to develop 1 GW of renewables in the Western Balkans

Ivan Bulatović, the executive director of EPCG, described the memorandum of understanding as “a crucial step in strengthening Montenegro’s energy stability.”

“Cooperation with renowned international partners, such as Alcazar Energy Partners, not only enables the modernization of the sector but also accelerates the transition to cleaner and more sustainable energy sources,” he added.

Alcazar Energy Partners is an independent sustainable investment manager with a strong track record in developing utility-scale renewable energy projects in emerging and growth markets since 2014, reads the press release.

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April 6, 2025

by AEA in News

Montenegro’s EPCG discussed BESS project with companies from US, China, Japan, region

Elektroprivreda Crne Gore, owned by the Government of Montenegro, has held discussions with several companies and financiers from the region, Europe, and the world about its project for battery energy storage systems.

Elektroprivreda Crne Gore (EPCG) said in September that it started the preparations to install battery energy storage systems (BESS).

After the Board of Directors of EPCG adopted a project task proposal and initiated a procedure for the preparation of a feasibility study and project design, the first phase of the procurement is already underway, according to the company’s Elektroprivreda magazine. The tender includes battery systems with a capacity of up to 120 MWh per location, it revealed.

A study is under development with elements of a feasibility study, addressing specific technical characteristics, according to Zoran Miljanić, a member of the Board of Directors. He added that the company extensively scanned available market options.

More than 20 meetings were held

In his words, more than 20 meetings were held with various interested parties. They were BESS manufacturers, battery integrators, financiers, co-investors, and institutions offering technical assistance.

Representatives of companies from the United States, France, China, Japan, Bosnia and Herzegovina and Montenegro participated in the discussions, he stressed. The meetings helped EPCG understand the issues related to the technical characteristics of batteries on the market, the availability of equipment, and the speed of delivery.

The aim is to choose the optimal solution for the company, Miljanić underlined.

The locations foreseen in the project task are hydropower plant Perućica, EPCG Željezara Nikšić, and thermal power plant Pljevlja. The plan is also to install a 5 MWh battery near the 5 MW Kapino Polje solar power plant, for which a project is under development.

Three locations are being considered

The locations were chosen because of free space for solar panels and the connections to the transmission network, which makes it easier and faster to install the batteries.

Miljanić emphasized that changes are possible after the study is finished but that the said options are primary.

In his words, in the first phase of development of the BESS technology, integrating batteries with photovoltaic plants seemed like a good model to balance their variable production.

However, amid the accelerated development of PCS (Power Conversion System), BMS (Battery Management System), and EMS (Energy Management System) solutions, battery projects are planned as independent and in different sizes – from residential to power distribution to industrial and large systems – connected to the transmission grid and with a capacity measured in the gigawatt-hour range.

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