The European Bank for Reconstruction and Development (EBRD) is deepening its role in Montenegro’s clean energy transition by extending an additional €26 million loan for the Gvozd wind farm expansion, the country’s flagship renewable energy project.
This new financing will enable the installation of three more wind turbines, lifting the site’s total capacity from 55 MW to 75 MW. Once operational, the Gvozd wind farm expansion will become the largest wind energy facility in Montenegro. The upgraded site will produce around 186 GWh of clean electricity each year, which is enough to supply more than 35,000 households, while also contributing to a reduction of nearly 137,000 tonnes of CO2 emissions annually.
The development is being led by Montenegro’s state-owned electricity utility, Elektroprivreda Crne Gore (EPCG), along with its subsidiaries. It is notable as the first multi-contract wind farm in the country to be delivered in line with the EBRD’s Procurement Policies and Rules. In addition, it marks the first EBRD-financed wind energy project to secure extension financing during its construction phase, demonstrating the Bank’s long-term and flexible support for sustainable infrastructure.
The original loan agreement of €82 million was signed in 2023. This milestone represented EPCG’s first major generation asset in more than four decades and its debut investment in wind energy.
Remon Zakaria, EBRD Head of Montenegro, stated: “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.”
Construction of the original 55 MW phase is already in progress, with turbine delivery expected this year. The extension is designed to integrate seamlessly into the ongoing schedule, with commissioning of the full 75 MW capacity anticipated by the end of 2026.
The EBRD remains one of the leading institutional investors in Montenegro, with more than €1 billion channelled into over 100 projects. These initiatives support sustainable development, strengthen electricity and transport infrastructure, and enhance regional integration.