Masdar, EPCG sign deals for 150 MW solar, eye 400 MW pumped hydro
Abu Dhabi Future Energy Company PJSC (Masdar) and Montenegro’s national power utility Elektroprivreda Crne Gore (EPCG) have moved their renewable energy partnership into project execution, signing Joint Development Agreements (JDAs) for 150 MW of solar capacity and a framework agreement to explore more than 400 MW of pumped hydro energy storage.
The agreements cover the 115 MW Štedim solar photovoltaic (PV) project and the 35 MW Krupac solar PV project. The companies also signed a Framework for Action (FFA) agreement to assess joint development of over 400 MW of pumped hydro energy storage projects in Montenegro.
These are the first projects being progressed through the 50/50 joint venture (JV) to be established by Masdar and EPCG following the signing of their Joint Venture Agreement (JVA) in April 2026. The partnership is targeting up to 2 GW of renewable energy capacity in Montenegro.
First projects
The Štedim and Krupac projects together represent 150 MW of solar capacity within the planned 2 GW portfolio.
Alongside the solar projects, Masdar and EPCG will explore more than 400 MW of pumped hydro energy storage. The storage projects could absorb electricity when supply exceeds demand and release it when required, supporting greater renewable energy integration while improving grid flexibility, stability and resilience.
Masdar and EPCG announced in April 2026 that they would form a 50/50 JV to develop large-scale projects across solar, wind, hydropower, pumped hydro, battery storage and hybrid energy technologies.
The platform is intended to meet Montenegro’s growing domestic electricity requirements, strengthen energy security and create opportunities to export renewable electricity to the Western Balkans and Southern Europe. Montenegro’s existing subsea electricity interconnection with Italy could provide access to the wider European power market.
Partnership
The agreements were signed in Tivat, Montenegro, by EPCG Chairman of the Board of Directors Milutin Đukanović, EPCG Chief Executive Officer Zdravko Dragaš and Masdar Executive Director, Global Offshore Wind and UK Business, Husain Al Meer.
The signing took place in the presence of UAE Minister of Industry and Advanced Technology and Masdar Chairman Dr. Sultan Ahmed Al Jaber and Montenegro Minister of Energy and Mining Admir Šahmanović.
Al Jaber said: “Europe’s demand for reliable, affordable energy is rising, and the need for new capacity has never been clearer. Today’s agreements reflect Masdar’s ability to bring global expertise, proven technology and long-term investment to markets with strong growth potential. They also mark an important step in the deepening relationship between the UAE and Montenegro. By working with our partners to deliver high-quality energy infrastructure, Masdar is supporting Montenegro’s energy security and creating a strong platform for sustainable economic growth.”
Šahmanović said: “For years, we have been talking about Montenegro’s exceptional potential in the field of renewable energy sources. Today, we can say that we have created the conditions for this potential to become concrete projects. Just three months after the establishment of the joint company, we are moving into the phase of implementing the first projects, which is the best confirmation of the seriousness of this partnership and the trust that one of the world’s leaders in clean energy has placed in Montenegro.
“Through this partnership, we are not only building new energy capacities; we are building a safer, stronger, and more competitive Montenegro. We are launching investments worth hundreds of millions of euros that will strengthen our energy security, create new jobs and new development opportunities for our citizens, ensure more stable energy supply for the economy, and create the conditions for green energy to become one of Montenegro’s most significant export products.”
Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said: “These agreements mark an important step for Masdar in Montenegro and a significant progression in our partnership with EPCG. By combining Masdar’s global development expertise, investment capability and track record in delivering large-scale renewable energy projects with EPCG’s market leadership and deep operational knowledge, we are creating a strong platform for long-term growth. Together, we aim to diversify Montenegro’s generation mix, strengthen energy security, improve system stability and flexibility, and unlock wider economic value for the country and the region.
“The Balkans, Southeast Europe and Central Europe are important growth markets for Masdar as we advance toward our target of 100GW of global renewable energy capacity by 2030. We look forward to deepening our collaboration with EPCG and the Government of Montenegro to deliver high-impact projects that support Montenegro’s growth ambitions and reinforce its position as a regional energy leader.”
EPCG Chairman Milutin Đukanović said: “Cooperation with Masdar represents an important step towards achieving our vision of a modern and sustainable energy sector. By establishing a joint venture, we are creating the conditions for the implementation of new renewable energy projects, while simultaneously strengthening our professional capacities and improving EPCG’s operations. The signed agreements on the joint development of the Krupac and Štedim solar power plants, as well as the Framework Agreement for Cooperation in Hydroenergy, mark the beginning of the creation of a joint generation portfolio of EPCG and Masdar, which will be further developed and expanded in the coming period. We are confident that this cooperation model will bring both short-term and long-term value to the company and to Montenegro.”
EPCG Chief Executive Officer Zdravko Dragaš said: “Partnership with Masdar opens a new chapter in EPCG’s development and our investment plans in the field of green energy. By combining international experience with local expertise, we are creating a solid foundation for the implementation of demanding projects that will contribute to increasing electricity generation from renewable energy sources. Today’s signing of three agreements lays the foundation for long-term cooperation through the joint development of projects and the creation of a generation portfolio that will continue to expand with new investments in the years ahead. We expect this cooperation to further strengthen the energy transition process, enhance the company’s competitiveness and create new opportunities for the development of Montenegro’s economy.”
European portfolio
Masdar has been active in Montenegro since 2018 through its investment in the 72 MW Krnovo Wind Farm, the country’s largest operating wind project.
Europe is a strategic market for Masdar as the company targets 100 GW of global renewable energy capacity by 2030. TERNA ENERGY, acquired by Masdar in 2025, is developing the 680 MW Amfilochia pumped hydro storage project, one of the largest such projects in Europe. The project provides technical and development experience relevant to the pumped hydro opportunities being assessed in Montenegro.
Masdar’s global portfolio exceeds 65 GW and spans solar, onshore wind, offshore wind, battery energy storage and hybrid energy solutions across established and high-growth renewable energy markets.
Photo credit: Masdar
