Abu Dhabi Future Energy Company and Montenegro’s national power utility have agreed to establish a 50/50 joint venture to develop large-scale renewable energy projects in Montenegro. Moreover, the partnership aimed to accelerate clean energy deployment and strengthen long-term energy security.
The agreement was signed at the Adria Future Summit in the presence of senior officials from both countries. Additionally, the joint venture will be headquartered in Nikšić, supporting local project execution and long-term operational oversight.
Multi-technology clean energy rollout planned
Through the joint venture, the partners will develop and operate renewable energy projects across multiple technologies. Furthermore, these will include solar photovoltaic, wind, hydropower, pumped hydro energy storage, stand-alone battery storage systems, and hybrid solutions.
The collaboration is intended to meet Montenegro’s domestic energy requirements. Moreover, it is expected to support renewable electricity exports to the Western Balkans and Southern Europe, including through an existing sub-sea interconnection with Italy.
The joint venture will combine local production capabilities with international project development expertise. As a result, it is expected to strengthen Montenegro’s position within the wider European energy market.
Officials highlight investment and transition impact
Admir Šahmanović, Minister of Energy & Mining, said: “This partnership represents a turning point for the energy future of Montenegro. By joining the forces, Masdar and EPCG bring together global knowledge, strong national capacity and a shared ambition to speed up the transition towards clean energy. In this way Montenegro sends a clear message that it is open for investments, ready to implement large-scale projects and determined to become a regional center for renewable energy. The time for planning is behind us; the time for implementation, development and concrete actions is ahead of us.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: ““Europe is a strategic growth market for Masdar as we advance towards our 100GW by 2030 target. Building on the agreement reached during Abu Dhabi Sustainability Week 2026, in the presence of HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of Masdar; Milojko Spajić, Prime Minister of Montenegro; and HE Admir Šahmanović, Montenegro’s Minister of Energy and Mining, we are pleased to return to Montenegro to sign this joint venture agreement with EPCG. This milestone supports Masdar’s continued portfolio growth and shared ambition to accelerate renewable energy development in Montenegro and the wider Balkan region, while deepening the longstanding partnership between the UAE and Montenegro. We are proud to work alongside the Government of Montenegro and EPCG in advancing the country’s energy transformation and contributing to energy security and sustainable economic growth across the region.”.”
Milutin Đukanović, President of the Board of Directors of Elektroprivreda Crne Gore, said: “’EPCG’s strategic commitment to the deployment of sustainable energy solutions and the modernization of our generation portfolio is confirmed by this partnership with Masdar. Through the JV we will enhance capacities for clean energy generation and additionally strengthen our operational and development competencies. These projects will create the basis for a stable and long-term development of Montenegro’s energy system.”
Zdravko Dragaš, Chief Executive Officer of EPCG, said: “’This cooperation represents a significant step forward in implementation of our development plans in the field of renewable energy and further diversification of generation sources. By combining knowledge, experience and resources with a globally renowned partner, we are creating a solid basis for the implementation of complex and technologically advanced projects. We believe that this partnership will contribute to accelerating the energy transition and creating new development opportunities for EPCG and the entire economy.”
Builds on earlier cooperation and existing assets
The partners previously announced in January that they were exploring the joint venture. Additionally, the move followed the signing of a UAE–Montenegro energy cooperation agreement in November 2025.
The joint venture will also build on the clean energy developer’s existing presence in Montenegro through its 2018 investment in the 72-megawatt Krnovo Wind Farm. Moreover, the partnership aligned with its wider expansion strategy in Southeast and Central Europe through TERNA ENERGY, which it acquired last year.
