The European Bank for Reconstruction and Development (EBRD) announced on Monday that it will provide a EUR-82-million (USD 89.5m) loan to Montenegro’s state-run electricity utility to build its first ever wind farm, a 55-MW onshore site in the central part of the country.
The loan will be provided to Elektroprivreda Crne Gore a.d. Niksic (EPCG) to finance the acquisition, construction and operation of the facility, supporting the company’s decarbonisation plan and the energy transition of Montenegro, according to a statement.
The wind farm, which will mark EPCG’s first major new-generation asset in over 40 years, will be located near the village of Gvozd in the municipality of Niksic. When fully operational, the site is expected to generate enough electricity to power more than 25,000 households annually.
The Gvozd project comes as the second wind farm financed by the EBRD in Montenegro, following the 72-MW Krnovo site, which was the first major power plant in the country since the 1980s.
Apart from the financing, the EBRD is also assisting the Balkan country in developing its first renewable energy law and regulatory reforms. The financial institution has already invested EUR 811 million in 83 projects in Montenegro.
