Masdar kicks off Montenegro solar projects

Masdar and Montenegro's state-backed utility Elektroprivreda Crne Gore kicked off execution of their renewable energy partnership, inking agreements to build out 150 MW of solar capacity, it said in a statement.

The solar projects, 115 MW Štedim and 35 MW Krupac, are the first concrete outcomes of the 50/50 JV the two agreed to set up in April, which aims to develop as much as 2 GW in capacity. The two are also exploring developing more than 400 MW of pumped hydro energy storage in order to help balance intermittent renewable generation.

ICYMI- The April agreement also included provisions for collaboration on wind, pumped energy storage, standalone battery energy storage systems, and hybrid solutions. Production will target domestic needs in Montenegro, as well as exports to the Western Balkans and Southern Europe.

Why it matters: The Abu Dhabi-based renewables giant can now export dispatchable clean electricity into Southern Europe by addressing renewable energy's biggest challenge: grid flexibility. Montenegro's subsea power cable with Italy allows a direct route into European power markets, enabling excess renewable power to be stored and released during periods of peak demand. It builds on Masdar's growing European foothold, which now includes 100% of Greek developer Terna Energy, 49.99% of a EUR 849 mn portfolio, and a growing solar portfolio in Spain, as it eyes 100 GW of global renewable capacity by 2030.