Alcazar Energy, a renewable energy investor in growth markets, announces its acquisition of rights to a 118 MW wind farm project in Montenegro – a major milestone in its ambition to build the largest renewable energy platform in the Western Balkans.
Alcazar Energy has entered into a partnership with Simes Inženjering and Sistem MNE who were the original greenfield developers of the project. This project will be built at a cost of c. $200 million, becoming one of the largest wind farms in the Western Balkans and doubling Montenegro’s installed wind capacity. Financial close is expected in Q1 2025, with construction commencing in early 2025.
The Bijela project forms part of the government’s 2040 national development strategy – which considers it a major economic investment for Montenegro and a significant contribution towards reducing the country’s greenhouse gas emissions. The project is estimated to create over 800 construction jobs and once in operation, produce enough clean energy to 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 represents the first milestone of Alcazar Energy’s strategy to create the region’s largest renewable energy platform, with an estimated total project investment in the region of $600m.
This project is meaningful for Europe more widely, as it will provide clean and affordable electricity – at a time when the continent is seeking to reduce its dependence on gas. Alcazar Energy is in discussions with several European off-takers interested in purchasing the project’s clean electricity.
Dritan Abazović, Prime Minister of Montenegro, stated:
“We are looking forward to the realization of such a project in our country, especially given that it concerns the neglected northern part. Montenegro is in its Constitution declared as an ecological country, making it a unique entity. 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.”
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. We look forward to working closely with the government and local stakeholders further – as we develop Montenegro’s largest wind farm – doubling the country’s installed wind capacity.
“Alcazar Energy builds sustainable infrastructure where it is needed most – in growth markets – while generating infrastructure returns to investors. We have an outstanding track record in developing and building renewable energy projects, expertise in emerging and growth markets and a commitment to ESG best practices.”
Slaven Milić, Founder of Simes Inženjering, commented:
“We are excited to announce our new partnership with Alcazar Energy to complete the development of Bijela and bring it to construction and operation. This collaboration combines the vision and experience of Simes Inženjering and Sistem MNE in developing various complex projects in Montenegro with Alcazar Energy’s expertise in catalysing early vintage renewable energy projects in emerging countries, bringing foreign direct investment, project finance as well as industrial and technical prowess. We warmly welcome Alcazar Energy to the region. Their ability to bring in international lenders for this $200 million investment will help us deliver on the immense promise of this project, notably for the budding green energy sector in Montenegro. We look forward to working together on its construction from 2025.
“Furthermore, we would like to extend our gratitude to our financial and legal advisors, KPMG and Karanovic&Partners, whose support has been instrumental in making this transaction a reality.”