Montenegro has cut its electricity-import bill to less than €42 million so far in 2026, a sharp improvement after spending almost €182 million during last year’s prolonged Pljevlja overhaul, strengthening the case for expanding its direct transmission link with Italy.
Energy Minister Admir Šahmanović said the national electricity balance is moving back towards equilibrium as domestic generation recovers.
The improvement follows the return of the Pljevlja thermal plant and stronger availability across other domestic generation assets.
Montenegro’s import exposure increased sharply when Pljevlja underwent a roughly nine-month ecological reconstruction, forcing the country to buy large volumes from neighbouring markets.
The latest figures show how valuable domestic generation remains during periods of regional price volatility.
Reducing imports by more than €100 million compared with the overhaul period materially improves the power-sector cash position.
Second Italy cable strengthens export route
The longer-term significance is Montenegro’s plan to develop a second strand of the submarine electricity interconnector with Italy.
Officials say agreement has been reached to proceed with the additional link, which would effectively double the corridor’s transmission capability.
That becomes increasingly important as Montenegro’s renewable pipeline grows.
CGES has disclosed connection contracts covering around 3 GW of projects, dominated by solar, far beyond what the small domestic electricity market can consume.
If a meaningful share reaches operation, Montenegro will need export capacity.
The Italian interconnector gives it direct access to one of Europe’s largest electricity markets.
A second cable could therefore become central to renewable-project bankability.
But transmission alone will not guarantee attractive export revenues.
Montenegro’s solar generation will often peak at the same time as renewable output in Albania, Greece, Serbia and Italy.
That creates a risk that large volumes reach the market precisely when prices are weakest.
Storage and hydropower optimisation will therefore be essential.
Montenegro’s existing hydro fleet provides an important advantage because water can be conserved when solar production is strong and released during higher-value hours.
Oil reserves also advance
The government also said Montenegro’s mandatory petroleum stocks have reached around 40% of the target required for a 90-day emergency reserve.
That adds another layer to the country’s energy-security investment.
At the same time, authorities have issued 65 urban-technical conditions for wind and solar projects, reinforcing the scale of the renewable pipeline.
The immediate market story, however, is the electricity balance.
Montenegro moved from a period in which the Pljevlja outage forced nearly €182 million of imports to one in which the bill has remained below €42 million.
If new renewable projects, storage and the second Italy cable progress together, the country’s next challenge may be very different.
Instead of financing expensive imports, Montenegro will need to maximise the value of growing electricity surpluses.
