Abu Dhabi's clean energy company Masdar has agreed to form an equal joint venture with Elektroprivreda Crne Gore (EPCG), Montenegro's national power utility, to develop large-scale renewable energy projects in Montenegro and support electricity exports across the Western Balkans and Southern Europe.

The agreement was signed at the Adria Future Summit, in the presence of Montenegro's Minister of Energy and Mining, Admir Šahmanović, the UAE Ambassador to Montenegro, Khamis Rashed Ahmed Lebsaili Alshemeili, and Masdar Chief Executive Mohamed Jameel Al Ramahi.

The signing was carried out by Milutin Đukanović, President of the Board of Directors of EPCG, Zdravko Dragaš, CEO of EPCG, and Ahmed Al Awadi, Advisor to the Office of the COO at Masdar.

Structure and Scope of the Joint Venture

The joint venture will be headquartered in Nikšić and structured as a 50/50 partnership between the two companies. It will develop and operate clean energy projects spanning a range of technologies, including solar photovoltaic, wind, hydropower, pumped hydro energy storage, stand-alone battery energy storage systems, and hybrid solutions within Montenegro.

The collaboration is designed to serve two parallel objectives: meeting Montenegro's domestic energy requirements and enabling the export of renewable electricity to the broader Western Balkans and Southern Europe.

The venture intends to leverage an existing sub-sea interconnection between Montenegro and Italy as part of that export strategy. The partnership combines EPCG's role as Montenegro's leading energy producer with Masdar's international expertise in renewable energy project development.

Both parties have described the arrangement as a foundation for accelerating Montenegro's energy transformation and contributing to regional energy security.

Political and Diplomatic Context

The joint venture formalizes a relationship that has been building through a series of diplomatic and institutional milestones. Masdar and EPCG first announced they were exploring the joint venture structure at Abu Dhabi Sustainability Week in January 2026.

That announcement followed the signing of a UAE-Montenegro energy cooperation agreement in November 2025. The January 2026 announcement at Abu Dhabi Sustainability Week was made in the presence of the UAE Minister of Industry and Advanced Technology and Masdar Chairman Sultan Al Jaber, Montenegro Prime Minister Milojko Spajić, and Energy Minister Šahmanović.

Minister Šahmanović described the agreement as a turning point for Montenegro's energy future. "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," he said at the signing. "The time for planning is behind us; the time for implementation, development, and concrete actions is ahead of us."

Masdar's Existing Footprint in Montenegro and Southeast Europe

The joint venture builds on Masdar's prior investment activity in Montenegro. In 2018, Masdar invested in the Krnovo Wind Farm, a 72-megawatt facility that is currently Montenegro's largest operating wind project.

The new partnership also fits within Masdar's wider regional strategy. The company cited its acquisition of TERNA ENERGY (a renewable energy company), a platform through which it has been expanding investment across Southeast Europe and Central Europe, as complementary to the Montenegro venture.

Al Ramahi framed the joint venture within Masdar's global growth ambitions. "Europe is a strategic growth market for Masdar as we advance towards our 100GW by 2030 target," he said, adding that the milestone supports the company's continued portfolio growth and its ambition to accelerate renewable energy development in the Balkan region while deepening the longstanding partnership between the UAE and Montenegro.

EPCG's Strategic Rationale

For EPCG, the deal represents a formal commitment to modernizing its generation portfolio and expanding its renewable energy capacity through an internationally experienced partner. Đukanović said the joint venture would enhance EPCG's capacities for clean energy generation and strengthen its operational and development competencies.

CEO Dragaš pointed to the diversification of energy sources as a key motivation. "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," he said, describing the partnership as contributing to the acceleration of the energy transition and creating development opportunities for EPCG and Montenegro's broader economy.

Regional Energy Security Implications

The agreement positions Montenegro as a potential renewable energy hub for its wider geographic neighborhood. The country's existing sub-sea cable connection to Italy provides a physical export pathway that the joint venture intends to utilize.

The involvement of the UAE through Masdar also deepens Gulf state investment in European energy infrastructure at a time when regional governments are actively seeking to diversify their electricity supply chains and reduce dependence on fossil fuels.

Masdar's dual focus on supporting Montenegro's domestic needs while enabling cross-border exports reflects a model the company has deployed in other European markets, where it has sought to align clean energy development with host country policy objectives and broader continental energy transition goals.

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