According to Montenegrin media, The Ministry of Sustainable Development and Tourism has issued an use permit for Krnovo wind farm and it is expected that it will leave trial operation in November. This would be the first wind farm in Montenegro.
Krnovo wind farm has been in trial operation since early May. The construction and installation of all 26 wind turbines at Krnovo wind farm has been completed in October last year. The state committed that the purchases of electricity produced by the wind farm will be guaranteed and that the the price will be fixed for the first 12 years of operation, and it will not be less than 95.99 euros/MWh. Estimated average annual production of this 72 MW wind farm is 215,000 MWh, therefore, according to the current price of electricity of 38 euros/ MWh, total annual subsidy for Krnovo wind farm would amount to 12.7 million euros, which will be paid by end consumers. State land has been leased for the period of 20 years, with an option of extension of up to five years.
Krnovo wind farm will have power output of 72 MW, and it is expected to produce between 200 and 230 GWh of electricity per year, which is about 8 % of the national output. Electricity output should be enough to supply nearly 20,000 households. The investors of this project are Austrian Ivicom and Akuo Energy SAS from France. The project is worth about 120 million euros and it is partially financed through loans provided by the German KfW Bank and the European Bank for Reconstruction and Development (EBRD).