Montenegro has taken a decisive step toward modernizing its power system with a €48 million investment in large-scale battery energy storage systems (BESS). State-owned utility Elektroprivreda Crne Gore (EPCG) has launched an international tender for two commercial and industrial energy storage installations, each designed to deliver 30 MW of power and store up to 120 MWh of energy.
The two four-hour battery storage projects will be located at the EPCG Željezara Nikšić metalworks site, operating at 35 kV output. Once completed, they are expected to play a pivotal role in balancing Montenegro’s increasingly diverse energy mix—particularly as the country accelerates its transition toward renewable generation.
A Comprehensive Tender Covering 20 Years of Operation
The scope of EPCG’s procurement is unusually extensive, spanning not just engineering, procurement, and construction (EPC) services, but also long-term maintenance and system upgrades. Bidders must provide cost estimates for the first 10 years, covering round-the-clock operation, servicing, and performance assurance, and a separate proposal for years 11 to 20, which will include the replacement of critical components and potential system upgrades to meet evolving grid requirements.
Interested companies have until October 15, 2025 to submit proposals through the ESJN electronic procurement platform. EPCG requires that the winning bidder deliver the main project design within 45 days of contract signing and complete commissioning within eight months—an aggressive timeline reflecting Montenegro’s urgency to enhance grid flexibility.
Strengthening Montenegro’s Energy Transition
This project is part of a broader strategy to deploy battery energy storage across four key locations, taking advantage of existing grid infrastructure. Beyond the twin 120 MWh units at Nikšić, EPCG is also preparing to roll out a 60 MWh system at the Perućica hydropower plant, another 60 MWh installation at the Pljevlja thermal power plant, and a smaller 5 MWh battery at the upcoming Kapino Polje solar power plant.
Currently, EPCG operates 874 MW of installed capacity, dominated by hydropower assets (Perućica and Piva, together supplying 649 MW) and complemented by the 225 MW Pljevlja thermal plant—the nation’s only coal-fired facility. The utility is also expanding its renewable energy portfolio, with projects including the 172 MW Komarnica hydroelectric plant, the 54.6 MW Gvozd wind farm, and the 250 MW Briska Gora solar power plant.
Why Battery Storage Matters for Montenegro
As Montenegro increases its share of intermittent renewables, from solar to wind, the integration of C&I ESS (commercial and industrial energy storage systems) becomes vital to maintaining grid stability. The new 240 MWh battery installations will allow EPCG to shift energy during peak and off-peak hours, reduce grid congestion, and provide essential ancillary services such as frequency regulation.
Moreover, the project positions Montenegro as a regional frontrunner in energy storage deployment within the Western Balkans, potentially creating new business opportunities for European battery manufacturers and system integrators.
Outlook: A Testbed for Broader Adoption
If successful, this initiative could serve as a model for other small and mid-sized European grids seeking to integrate high shares of renewable energy while maintaining reliability. With its comprehensive lifecycle approach—covering design, operation, and long-term upgrades—EPCG’s tender reflects an evolving understanding of how battery energy storage systems can deliver both immediate and sustained value.
