Abu Dhabi clean energy company Masdar and Montenegro’s national power utility, Elektroprivreda Crne Gore, have signed agreements to develop two solar projects and a hydro energy storage project.
The agreements, signed in Tivat, Montenegro, are the latest step in the UAE company's European expansion as it helps to develop 2 gigawatts of renewable energy capacity in the Balkan nation.
The projects are designed not only to meet Montenegro's domestic electricity demand. They also aim to export renewable power into southern Europe through an existing subsea electricity interconnector with Italy, positioning Montenegro as a growing clean energy gateway to European markets.
The agreements were signed in the presence of Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and chairman of Masdar, and Admir Sahmanovic, Montenegro's Minister of Energy and Mining.
Montenegro as renewable gateway
They cover the joint development of two solar projects with a combined capacity of 150 megawatts and 400MW of pumped hydro energy storage projects, Masdar said in a statement on Tuesday.
Pumped hydro energy storage stores electricity by pumping water to a higher reservoir when electricity supply is abundant and generating power when demand increases.
The agreements follow the establishment in April of a 50-50 joint venture between Masdar and Elektroprivreda Crne Gore (EPCG) to develop up to 2GW of renewable energy capacity across solar, wind, hydropower, pumped hydro and battery storage.
“Europe’s demand for reliable, affordable energy is rising, and the need for new capacity has never been clearer,” Dr Al Jaber said.
“Today's agreements reflect Masdar’s ability to bring global expertise, proven technology and long-term investment to markets with strong growth potential. They also mark an important step in the deepening relationship between the UAE and Montenegro.”
Europe is looking to diversify its energy mix and reduce dependence on fossil fuels as it focuses on meeting climate goals.
The energy crisis created by the war in Iran is also pushing Europe to speed up building of renewable energy projects.
The EU is aiming for renewable power to make up at least 42.5 per cent of its energy mix by 2030, up from 26.2 per cent in 2025, according to European Commission data.
Europe is key market
Masdar, jointly owned by Taqa, Adnoc and Mubadala, is targeting renewable energy capacity of 100GW by 2030, with Europe a key market as it expands its portfolio, from the current 65GW.
The Montenegro agreement follows a series of European investments by Masdar.
Last year, it acquired Greece's Terna Energy, which is developing the 680MW Amfilochia project, one of the largest pumped hydro storage projects in Europe.
Masdar also finalised a deal to acquire nearly half of Spain's Repsol. It will acquire a 49.99 per cent stake in Madrid-based Repsol for about €849 million ($978 million), the company said last month. The deal, subject to regulatory approvals, is expected to close by the end of this year.
Once completed, Masdar will have an operational capacity of 4.1GW across the Iberian Peninsula, with about 1GW more under development.
In April, Masdar and France’s TotalEnergies agreed to merge their onshore renewable energy businesses in nine Asian countries and create a new joint venture worth $2.2 billion.
The 50-50 venture will allow both companies to develop, build, own and operate onshore solar, wind and battery storage projects in Azerbaijan, Indonesia, Japan, Kazakhstan, Malaysia, the Philippines, Singapore, South Korea and Uzbekistan.
