Alcazar Energy acquires rights to 118MW wind farm in Montenegro

Luxemburg-based renewables investor Alcazar Energy has acquired the rights to the 118MW Bijela wind project in Montenegro.

The project is set to become one of the largest wind farms in the Western Balkans and will double Montenegro’s installed wind capacity, according to Alcazar Energy.

It will cost approximately $200 million to build the wind farm.

Financial close is expected in Q1 2025, with construction commencing in early 2025.

Alcazar Energy will partner with Montenegro-based Simes Inženjering and Sistem MNE, the original greenfield developers of the project.

Alcazar Energy is currently in discussions with European off-takers interested in purchasing agreements, as well as development institutions and commercial banks which have indicated their interest in partnering with Alcazar Energy to finance the project.

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Daniel Calderon, co-founder and managing partner of Alcazar Energy, said: “We are thrilled to complete the acquisition of rights for this significant wind farm project. For Montenegro and the Western Balkans region, it will bring much-needed clean and also affordable electricity - and create long-term local jobs."

Dritan Abazović, prime minister of Montenegro, stated: "We are looking forward to the realisation of such a project in our country...We are committed to green energy because it represents the future of our sustainable development. I invite foreign investors to continue investing in Montenegro, and the government will be their open and serious partner without any hindrances."

The Bijela project will create over 800 construction jobs and once in operation, will power over 20,700 households annually, while avoiding the release of over 260,000 tons of CO2e per year.

The acquisition of the Bijela project is a strategic milestone for Alcazar Energy, which aims to invest $600 million in the region.

Montenegro's potential

The energy sector of Montenegro is small, according to the International Trade Administration (ITA), with only 396,000 customers and an overall demand of approximately 3,500GWh annually.

The majority of electricity is produced at the Pljevlja coal-fired thermal power plant as well as the Perucica and Piva Hydropower Plants.

Montenegro currently has two operational wind farms, Krnovo, with a capacity of 72MWh, and Mozura, with a capacity of 46MWh.

These will be joined by the Gvozd wind farm, for an estimated 54MW and the 100MW Brajici wind farm.