Montenegro is entering the most intensive investment cycle in its energy history, according to Ivan Bulatović, CEO of the national power company Elektroprivreda Crne Gore (EPCG). Speaking at the international MICEB conference on economics and business, held last week in Budva and organized by the University of Montenegro’s Faculty of Economics, Bulatović emphasized the need for a strategically planned energy transition grounded in realistic national capabilities.
By the end of 2025, EPCG expects to integrate 100 megawatts of renewable energy into the national grid — a significant leap for a country of Montenegro’s size. However, Bulatović underscored that Montenegro cannot achieve full decarbonization on its own and requires substantial support from the European Union.
“The Western Balkans needs to invest around €33 billion for full decarbonization. Without EU assistance, Montenegro cannot bear that burden alone. While the ecological overhaul of the Pljevlja Thermal Power Plant will align us with EU regulations and ensure supply continuity, we cannot shut down existing capacities until we secure the technical and market conditions to balance the system,” said Bulatović.
He stressed that relying on electricity imports is neither technically sustainable nor strategically viable. Moreover, Montenegro is facing challenges related to the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM), which could impose additional costs on coal-based electricity exports.
“If CBAM is implemented without prior adaptation of infrastructure and market alignment, our energy sector’s competitiveness would be jeopardized. We need either an exemption or a transitional period,” he warned.
Bulatović also highlighted the importance of several key infrastructure projects: the undersea power cable to Italy, the future interconnection with Serbia via the Pljevlja–Bajina Bašta transmission line, and the development of solar and wind energy, particularly the Gvozd and Gvozd 2 wind farms. He also mentioned the strategic significance of the Kruševo and Komarnica hydroelectric plants, noting that Kruševo is planned as a pumped-storage facility — one of the most efficient forms of energy balancing in systems dominated by renewables.
“I regret that Montenegro didn’t realize projects like Buk Bijela earlier,” he added.
At the same panel, Aleksander Mervar, CEO of Slovenia’s transmission system operator ELES, discussed the EU’s transition challenges and ELES’s experience. He pointed out the current lack of technical solutions for balancing energy systems based on solar and wind power, stressing the importance of grounding energy strategies in realism rather than idealism.
“Montenegro must be cautious in its decarbonization efforts. The country still holds significant coal reserves in Pljevlja, and abrupt decisions could strain the national energy system,” said Mervar.
The panel concluded with a shared message: Montenegro must continue its green transition but in a technically and financially sustainable way. Both Bulatović and Mervar agreed that strategic planning is key to long-term energy stability and environmental sustainability. They emphasized that upgrading grid infrastructure, expanding renewable energy capacities, and investing in human capital are essential to achieving EU standards and securing a smart energy future.
