Montenegro Forecasts 58% Surge in Electricity Output for 2026

Montenegro's Ambitious Energy Outlook

Montenegro is projected to achieve a substantial increase in its electricity output, with forecasts indicating a rise of approximately 58% in 2026. This surge is expected to bring the nation's total electricity generation to 3,798 GWh, as outlined in the Government's recently adopted 2026 Energy Balance. The significant boost is primarily attributed to the anticipated restart of the Pljevlja Thermal Power Plant (TPP) following its ecological reconstruction, alongside the robust expansion of new renewable energy sources across the country.

Pljevlja Thermal Power Plant's Return to Service

The Pljevlja Thermal Power Plant, Montenegro's sole coal-fired power station, is slated to resume operations by December 1, 2025, with potential reconnection to the grid between November 25 and 28. The plant has been offline since April 1, 2025, undergoing an extensive ecological reconstruction costing an estimated 70 million euro. Upon its restart, the Pljevlja TPP is expected to contribute an additional 1,299 GWh to the national grid in 2026, a significant increase from the 500 GWh it produced in the first three months of 2025. While the reconstruction aims to extend its operational life and facilitate district heating in Pljevlja, the plant's annual operating hours are expected to be reduced starting in 2026 due to higher CO2 emission fees, with plans for its eventual decommissioning between 2035 and 2040 as part of Montenegro's decarbonization efforts.

Accelerated Growth in Renewable Energy

A cornerstone of Montenegro's energy strategy is the aggressive development of renewable energy sources. The country is set to significantly expand its solar and wind power capacities:

• Solar Power: The total installed solar capacity is projected to reach approximately 215 MW by the end of 2026. State utility Elektroprivreda Crne Gore (EPCG) is leading this expansion with phased commissioning of commercial solar power plants, aiming for 84 MW by the end of 2026. EPCG's 'Solari 3000+', 'Solari 500+', and the upcoming 'Solari 5000+' programs are collectively expected to add around 105 MW. Additionally, privately financed commercial solar projects are anticipated to contribute another 25 MW.
• Wind Power: The 54 MW Gvozd wind farm is scheduled to commence operations in 2026. This will contribute to an expected rise in wind park output to 455 GWh in 2026, up from 311 GWh in 2025. Furthermore, the 118 MW Bijela wind farm is also targeted to be online in 2026, with construction having begun in early 2025.

Hydropower plants are also expected to play a crucial role, contributing an estimated 1,846 GWh to the total production in 2026, an increase from 1,525 GWh in 2025. Plans are also in place to boost generation at the Perućica hydropower plant in 2026.

Path Towards Energy Independence

The projected increase in electricity generation is a critical step towards Montenegro's strategic goal of becoming an energy-independent nation and a net exporter of electricity. The anticipated 2026 output is expected to create a surplus of 398 GWh, marking a significant shift from previous reliance on imports. The country has faced substantial costs due to electricity imports, particularly during the Pljevlja TPP's shutdown, with imports totaling over 80 million euro in 2025 alone. The European Bank for Reconstruction and Development (EBRD) is actively supporting Montenegro's energy transition efforts.