The European Bank for Reconstruction and Development (EBRD) said on August 19 that it is deepening its support for Montenegro’s green transition with an additional €26mn loan to expand the Gvozd wind farm, the country’s flagship renewable energy project.

The financing will enable the installation of three additional wind turbines, increasing Gvozd’s capacity from 55 MW to 75 MW and making it the largest wind farm in Montenegro once operational.

The expanded facility will generate 186 GWh of clean electricity annually – enough to power more than 35,000 households – while reducing CO2 emissions by nearly 137,000 tonnes a year.

The project is being developed by state-owned utility Elektroprivreda Crne Gore (EPCG) and its subsidiaries. It marks the first multi-contract wind farm in Montenegro to be implemented under the EBRD’s Procurement Policies and Rules, and the first wind farm financed by the lender to receive extension financing during construction.

The original €82mn loan for Gvozd was signed in 2023, making it EPCG’s first new-generation asset in more than 40 years and its first wind farm.

EBRD Head of Montenegro Remon Zakaria said the expansion underlines the Bank’s long-term commitment to impactful green infrastructure:

“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.”

EPCG CEO Ivan Bulatović described the extension as a “symbol of progress” and a milestone in Montenegro’s green energy transition.

He noted that the project supports the country’s decarbonisation strategy and its alignment with EU climate goals, reinforced by the recently adopted Law on the Use of Energy from Renewable Sources, developed with EBRD support.

Construction of the original 55 MW phase is already under way, with turbine delivery expected this year. The full 75 MW capacity is expected to be commissioned by the end of 2026.

Francesco Corbo, the EBRD’s Regional Head of Energy for the Western Balkans and Croatia, highlighted that the Bank is also backing Montenegro’s first renewable energy auction – a 250 MW solar PV initiative – through its Renewable Energy Market Accelerator programme.

The EBRD has invested over €1bn in Montenegro across 100 projects, supporting energy, infrastructure and private-sector growth.