EBRD Facilitates Montenegro’s Energy Transition with €82 Million Loan for Wind Farm Development

EBRD Facilitates Montenegro’s Energy Transition with €82 Million Loan for Wind Farm Development

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has granted an €82 million loan to Elektroprivreda Crne Gore a.d. Nikšić (EPCG), Montenegro’s national electricity utility, and Green Gvozd LLC, a special-purpose vehicle (SPV) fully owned by EPCG. The loan will support the acquisition, construction, and operation of a new 55 MW onshore wind farm near Gvozd village in Nikšić municipality. The project will contribute to EPCG’s decarbonisation plan and Montenegro’s energy transition by generating renewable energy equivalent to powering over 25,000 households annually and reducing CO2 emissions by at least 104,000 tonnes per year. This initiative furthers the country’s commitment to decommission coal-based power plants and promotes its green economy transition. The EBRD, in addition to financing, is assisting Montenegro in developing renewable energy legislation, implementing regulatory reforms, and launching the country’s first renewable energy auction. The EBRD has invested €811 million in Montenegro across 83 projects to date, focusing on private sector competitiveness, green economy transition, and regional integration.

(PRESS RELEASE)  LONDON, 20-Jun-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has provided an €82 million loan to Elektroprivreda Crne Gore a.d. Nikšić (EPCG), the national electricity utility, and Green Gvozd LLC, a special-purpose vehicle (SPV) fully owned by EPCG. This investment aims to facilitate the acquisition, construction, and operation of a new 55 MW onshore wind farm near the village of Gvozd in Nikšić municipality. The project will contribute to EPCG’s decarbonisation plan and accelerate Montenegro‘s energy transition.

The loan agreements were signed in Podgorica today by Matteo Colangeli, EBRD Director for the Western Balkans, Remon Zakaria, Head of Montenegro at EBRD, Milutin Đukanović, Chairman of the Board of Directors at EPCG, Nikola Rovčanin, CEO of EPCG, and Krešimir Čondić representing Green Gvozd.

Upon completion, the Gvozd wind farm is projected to generate renewable energy output equivalent to powering over 25,000 households annually in Montenegro. It is expected to reduce CO2 emissions by at least 104,000 tonnes per year, equivalent to the annual emissions of approximately 62,000 cars. The Gvozd wind farm marks a significant milestone for EPCG as its first major new-generation asset in over 40 years and its inaugural wind farm.

This will be the second wind farm in Montenegro financed by the EBRD, following the 72 MW Krnovo project, which became the country’s first major electricity generating facility since the 1980s.

The development of new renewable energy capacity in Montenegro is crucial to the country’s plans to decommission coal-based power plants, which significantly contribute to greenhouse gas emissions. Currently, coal accounts for nearly half of Montenegro’s domestic electricity generation. The Gvozd wind farm will help reduce the carbon intensity of Montenegro’s power sector and advance its transition towards a greener economy.

In addition to financing, the EBRD is assisting Montenegro in formulating its first renewable energy law and implementing regulatory reforms to foster an enabling environment for renewable energy investments. The bank also supports the launch of Montenegro’s inaugural renewable energy auction.

“We are proud to support EPCG in developing this important project,” said Remon Zakaria, Head of the EBRD in Montenegro. “It is critical in order to initiate the decarbonisation of the energy sector in Montenegro and will support not only EPCG’s decarbonisation ambitions, but also significantly contribute to Montenegro’s energy security and green transition.”

Including this project, the EBRD has invested €811 million in 83 projects in Montenegro to date. The bank’s key focus areas in the country are enhancing private sector competitiveness, advancing Montenegro’s green economy transition, and supporting regional integration and connectivity.

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SOURCE: EBRD