EBRD Comes Through For Montenegro's Renewable Energy By Backing Gvozd Wind Farm With Loan

(MENAFN- Trend News Agency) BAKU, Azerbaijan, August 20. The European Bank for Reconstruction and Development (EBRD) has given the green light for an extra 26 million euro loan to give a boost to Montenegro's crown jewel in renewable energy, the Gvozd wind farm, Trend reports.

The recent capital infusion will facilitate the deployment of three supplementary wind turbines, augmenting the facility's capacity from 55 megawatts to 75 megawatts. Upon culmination, Gvozd will emerge as the preeminent wind energy facility in Montenegro, yielding an impressive 186 GWh of renewable electricity on an annual basis-sufficient to energize over 35,000 residential units-and facilitating a reduction in carbon dioxide emissions by approximately 137,000 tonnes each year.

The initiative is currently under development by Montenegro's national electricity utility, Elektroprivreda Crne Gore (EPCG), in conjunction with its affiliated entities. This initiative signifies the inaugural deployment of a multi-contract wind energy facility in alignment with the EBRD's Procurement Policies and Rules in collaboration with a public utility. Furthermore, it represents the pioneering EBRD-funded wind project to secure extension financing amidst the construction phase.

The inaugural loan of 82 million euros allocated for Gvozd was executed in 2023, positioning it as EPCG's premier substantial new-generation asset in excess of four decades and its inaugural wind energy facility.

“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-by increasing clean energy generation and setting new benchmarks in project implementation. This additional investment underlines our commitment to accelerating Montenegro's green energy transition and strengthening its energy security,” said Remon Zakaria, EBRD Head of Montenegro.

“The Gvozd wind farm transcends conventional construction paradigms, embodying a paradigm shift towards sustainable energy solutions and a resolute commitment to advancing ecological stewardship. With its augmentation, it transforms into the preeminent wind energy facility in Montenegro and serves as a pivotal element of our nation's ecological transition and energy autonomy," EPCG Chief Executive Officer Ivan Bulatović underscored the project's significance.

The execution of the initial 55 MW phase is currently in progress, with the anticipated arrival of turbines slated for this calendar year. The augmented 75 MW installation is projected to achieve full operational status by the conclusion of 2026.

The EBRD underscored its comprehensive initiatives to bolster Montenegro's green energy landscape via its Renewable Energy Market Accelerator (REMA) program, which has facilitated the nation's inaugural renewable energy auction-a pivotal 250 MW solar PV endeavor.

The EBRD continues to be a preeminent institutional investor in Montenegro, having allocated in excess of 1 billion euros across 100 initiatives thus far, facilitating sustainable development, infrastructure enhancement, private-sector expansion, and regional integration efforts.

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