Podgorica: The European Bank for Reconstruction and Development (EBRD) has approved an additional 26 million euro loan to enhance Montenegro's flagship renewable energy project, the Gvozd wind farm, Trend reports.

According to Trend News Agency, this financial boost will enable the installation of three additional wind turbines, increasing the facility's capacity from 55 megawatts to 75 megawatts. Once completed, the Gvozd wind farm will be Montenegro's largest wind energy facility, generating 186 GWh of renewable electricity annually. This output is enough to power over 35,000 homes, while also reducing carbon dioxide emissions by approximately 137,000 tonnes each year.

The project is being developed by Montenegro's national electricity utility, Elektroprivreda Crne Gore (EPCG), and its affiliates. This initiative marks the first time a multi-contract wind energy facility has been implemented in line with the EBRD's Procurement Policies and Rules, in collaboration with a public utility. It is also the first EBRD-funded wind project to receive additional financing during its construction phase.

The initial loan of 82 million euros for the Gvozd project was granted in 2023, marking EPCG's first significant new-generation asset in over 40 years and its first wind energy facility.

Remon Zakaria, EBRD Head of Montenegro, expressed pride in the partnership with EPCG and the expansion of Montenegro's renewable energy project. "The Gvozd wind farm demonstrates how flexible, long-term financing can deliver real impact by increasing clean energy generation and setting new benchmarks in project implementation," Zakaria said.

EPCG Chief Executive Officer Ivan Bulatovic highlighted the project's significance, stating that the Gvozd wind farm represents a shift towards sustainable energy solutions and a commitment to ecological stewardship. The expanded facility is expected to be fully operational by the end of 2026.

The EBRD also highlighted its Renewable Energy Market Accelerator (REMA) program, which has supported Montenegro's first renewable energy auction for a 250 MW solar PV project. The EBRD remains a leading institutional investor in Montenegro, having invested over 1 billion euros in more than 100 projects to support sustainable development and regional integration.