After a long period of reliance on coal and large hydropower plants, the region's power companies have begun developing wind farms and solar power plants, many of which already have ten years of experience in developing these projects. Montenegro currently does not have a single green megawatt in state ownership, but as early as 2026, when the Gvozd wind farm and the solar power plants at the Slano and Vrtac dams are put into trial operation, it could take the lead in terms of the percentage share of RES projects.
This was stated in a study by the Renewable Energy Sources Association of Serbia (RES) for seven countries in the region, which "Vijesti" had access to. The study concerns how much state-owned electricity companies are investing in renewable energy sources from wind and solar. It also indicates that the Montenegrin state-owned company was significantly behind schedule, but has now embarked on major projects.
Montenegro must shut down the Thermal Power Plant, from which it obtains half of its energy needs, within the next 15 years at the latest, and by then it must build power plants that can replace it in terms of quantity and stability of operation.
The analysis shows that experiences and projects from country to country in the region differ significantly in the choice of technologies and the dynamics of development and construction.
"What they have in common is that the first state-owned wind farms have a capacity of 50-70 MW, while solar power plants are mostly connected to the electricity distribution system. And the finances mostly come from similar sources - loans from international financial institutions, EU grants and own funds. Slovenia does not have a single state-owned wind farm, and the private sector is not recording any significant development of wind energy projects either."
At the same time, Slovenia is planning to build the largest floating solar power plant in Europe. Albania is not lagging behind in innovation, placing solar panels on the surface of a hydroelectric dam, which is also being done by Montenegro. North Macedonia was the first in the region to launch a wind farm, with ambitious plans in the field of solar energy, the research stated.
The analysis included an overview of investments, capacities, technologies and plans of power companies from Serbia, Croatia, Slovenia, Bosnia and Herzegovina, Montenegro, North Macedonia and Albania. It was prepared based on official data from the websites of regional power companies and in consultations with colleagues from partner associations.
Montenegro - VE Gvozd one of the most important in the region
"The Gvozd wind farm of the Montenegrin EPCG, which is expected to be put into operation soon, is one of the most significant wind energy projects in the region, with a total installed capacity of 54 MW. The installed capacity per turbine is 7 MW, and the expected annual production is around 150 GWh of electricity. The wind farm is known for its tallest tower in Europe, 120 meters high, with ellipses 85 meters long. The Gvozd 2 wind farm with a capacity of 21 MW is being developed in parallel. EPCG is also developing intensive solar programs. EPCG-Solar gradnja, which is part of the EPCG Group, is installing hundreds of smaller and larger solar power plants, including system solar parks, first through the Solari 3000+ and 500+ projects, which present real opportunities for energy and financial savings to the citizens of Montenegro," the research for Montenegro stated.
They indicate that this year EPCG is expected to put into operation its first two solar power plants with a capacity of 4,8 MW each, which are installed on dams on Lake Slano near Nikšić and on the Vrtac dam.
Serbia - Kostolac wind farm, a new chapter in energy transition
After years of preparations, Elektroprivreda Srbije (EPS) launched its first RES capacity in Kostolac in 2025.
"The Kostolac wind farm, with an installed capacity of 66 megawatts, and the 10 megawatt Petka solar power plant have together brought 76 megawatts of renewable energy to the system. The former coal dump was converted into a wind turbine field, while the depleted mine became a solar park, so the area that was a symbol of the mining industry for decades has now become a symbol of the energy transition. The Kostolac wind farm consists of 20 Siemens Gamesa wind generators. The investment value is 144 million euros, and it was financed by a loan from the German Development Bank (KfW) and a non-refundable donation from the European Union (30 million euros) and EPS funds. The Kostolac wind farm is in the feed-in tariff system," the research stated.
They also point out that EPS already owns the Brana Lazići photovoltaic power plant in Zaovine with a capacity of 330 kW, which has been operational since 2017, and that this state-owned energy company of Serbia plans to build six solar power plants with a capacity of 1GW along with a 200 MW battery storage system.
Croatia - Korlat wind farm without incentives from the beginning
"Korlat, as the first wind farm in the history of the Croatian Electric Power Company (HEP), was put into operation in 2018 and has been outside the incentive system since the beginning. The connected power of the wind farm is 58 MW, while the average annual production is 161 GWh. The total value of the investment was around 67 million euros. The Korlat wind farm consists of 18 Nordex wind generators with an individual power of 3,6 MW. The Korlat solar power plant is currently being built at a nearby location, with a power of 99 MWp and a projected annual production of 165 GWh," the research stated.
The Croatian state-owned energy company is also said to be rapidly expanding solar production through two models: non-integrated solar power plants, which are completely independent production facilities, and integrated solar power plants, which are installed on facilities that are already part of the energy system, such as hydroelectric power plants, substations and industrial complexes.
Slovenia has no wind farms, focusing on solar power
Slovenia is said to be unique in that it does not have a single state-owned wind farm, and the private sector in that country is not making significant progress in this field.
“Wind development is limited by geographical and environmental factors, as well as strong resistance from local communities. Instead, the country is strategically focused on solar power plants. State-owned projects are under the energy holding Slovenske elektrane (HSE). The Prapretno solar power plant, commissioned in 2021, was built on the site of the former Trbovlje thermal power plant landfill. With a capacity of 3,03 MW and an annual production of 3,36 MWh, this power plant supplies around 800 households. The Družmirje solar power plant is under construction, which will be the largest floating solar power plant in Europe with a capacity of around 140 MW. Installed on mining lakes and tailings, it shows how degraded lands can be converted into energy resources. This makes Slovenia a pioneer in floating solar technology,” the study states.
For Slovenia, it is stated that its company HSE also operates a number of smaller solar power plants, which are often installed on the roofs of schools, administrative buildings or within hydroelectric power plants, making maximum use of existing infrastructure.
BiH - Wind turbine beams since 2018
There are three state-owned entity power companies in Bosnia and Herzegovina: EP HZ, EPBiH and EP RS.
"The first wind farm on the territory of Bosnia and Herzegovina is the Mesihovina wind farm near Tomislavgrad, with a capacity of 50,6 MW, which was put into operation by Elektroprivreda HZ in 2018. It consists of 22 Siemens wind turbines, and the investment value is 81 million euros obtained from a KfW loan and public sources of financing. The same company plans to build the Poklečani wind farm, as well as its first large solar power plant with a capacity of 150 MW, the research states.
EPBiH has built the Podveležje wind farm, which with its 15 wind generators with a total capacity of 48 MW produces around 120 GWh of electricity annually.
"Elektroprivreda BiH is planning to build new solar power plants - Gračanica 1 and 2, with a planned capacity of 45 MW and an annual production of more than 66 GWh, the implementation of which is supported by loan arrangements with the European Bank for Reconstruction and Development (EBRD). In parallel, projects such as the Bitovnja wind farm (up to 90 MW) and the Vlašić wind farm (up to 50 MW) are being prepared," data for EP in BiH are available.
The Hrgud wind farm will be the first large wind farm of the Electric Power Company of the Republic of Srpska, designed as a key part of future energy development, with an installed capacity of 48 MW and an average annual production of around 126 GWh.
"The construction of the Trebinje solar power plant with an installed capacity of 100 MW and an average annual production of 147,7 GWh is also planned, while the estimated investment costs range from 134,43 million KM (69 million euros).
North Macedonia - Bogdanci wind farm for 60.000 households
The Bogdanci Wind Farm, the only wind farm owned by Elektrana na Sjeverna Makedonija (ESM), was completed in February 2014.
“The wind farm has 16 Siemens wind turbines with a capacity of 2,3 MW each. The Bogdanci wind farm produces around 100 GWh of electricity annually, enough for more than 60.000 households, with a total capacity of 36,8 MW. The next phase envisages the construction of four to six new turbines with a total capacity of 13,8 MW, with a production of 37 GWh per year, with accompanying access roads and cable infrastructure. When it comes to solar energy, the state-owned Oslomej 1 photovoltaic power plant with a capacity of 10 MW was built on the site of a former open-pit coal mine, which is part of an ambitious plan of 120 MW. Annual production currently amounts to 15-17 GWh, which is enough to supply approximately 2.800 households. The project was implemented with combined financing: the European Bank for Reconstruction and Development (EBRD) provided a loan of around 5,9 million euros, while the Western Balkans Investment Framework contributed an additional 1,6 million euros of support", it was stated in the part of the research for North Macedonia.
The state's energy company has signed a financing agreement for the state-owned 134 MW Bitola 3 solar power plant, for which funds in the amount of 87 million euros were provided by the EBRD and KfW.
Albania - SE on the dam surface
Albania, with an energy system that relies almost entirely on hydroelectric power, has reportedly been rapidly developing solar power plants in recent years to reduce the risks of hydrological oscillations.
“The Albanian Energy Corporation (KESH) is a public producer and at the same time the largest electricity producer in Albania. The Qyrsaq solar power plant is KESH’s first large-scale solar power plant with a capacity of 5 MWp. The solar panels are installed on the surface of the hydroelectric dam, so this innovative approach combines two renewable energy sources: hydropower and solar energy. Qyrsaq was put into operation in February 2022. The plant is operating at full efficiency and contributes to the diversification of KESH’s production portfolio. The annual production is 7.019 MWh, which is enough electricity for 1.900 households,” the report stated.
This neighboring country is also preparing two larger solar plants.
“The Belš project, financed by WBIF, envisages the installation of a 50 MW ground-mounted solar power plant. The plant is expected to produce around 79 GWh of electricity per year, equivalent to the annual consumption of 16.100 average households. The Zadeja solar power plant is another project that combines solar and hydropower in one system. The photovoltaic power plant will have a capacity of 8,25 MWp on the Zadeja dam of the Vau i Dejes hydroelectric power plant,” the report stated.
Investments in larger projects left to the private sector
The analysis of RES Serbia shows that the region's power utilities have made significant first steps towards renewable sources in terms of investment.
"What they have in common is that they have opted for European wind turbine manufacturers, and that the financing is partly provided by international financial institutions, donations and their own money, without much influence from commercial banks. It is interesting that the states have opted for projects with a capacity of up to 100 MW, while leaving investments in larger projects to the private sector, buying cheap electricity from them."
Bonus video:
