Montenegro signs 500 MWh BESS deal with Japanese developer

Japan’s PowerX has signed a memorandum of understanding (MoU) with Montenegro’s national utility, EPCG, targeting approximately 500 MWh of BESS capacity spread across an initial three-year period.

The deal is significant for Montenegro and the small Balkan country’s utility company will work with PowerX to identify suitable deployment strategies to support grid reliability, peak shaving, and frequency regulation.

Meanwhile, PowerX, which is listed on the Tokyo Stock Exchange, will use the deal as an opportunity to expand into the European market.

The company has an R&D center in Tokyo and plans to explore setting up localized BESS assembly facilities in Montenegro, according to its CEO, Masahiro Ito.

“Through this strategic cooperation, we aim not only to deploy advanced battery storage solutions, but also to build a long-term foundation for PowerX’s activities in Montenegro and the wider region, including the development of local battery system assembly capabilities,” Ito said.

Its deal with EPCG includes after sales support provision. The European Union country has a power interconnection with Italy and is situated right in the heart of Southeast Europe bordering Serbia and Croatia.

Montenegro’s government has made BESS a big part of its latest climate targets. Its December 2025 National Energy and Climate Plan aims to meet half of its total energy consumption through renewables by 2030.

In March of this year, EPCG had to cancel its second of two energy storage tenders due to a lack of interest. Its most recent tender received no bids, while its first tender was canceled even before the bid submission deadline because EPCG failed to get government approval to take out a loan to finance the projects which were located at a metal processing site with an existing grid connection.

The PowerX deal could prove to be a turning point for Montenegro energy storage. EPCG’s CEO, Zdravko Dragaš, said the MoU forms an important step in the modernization of Montenegro’s power system. “Cooperation with PowerX gives us access to advanced energy storage technologies, which are essential for the stable integration of renewable energy sources and the long-term energy security of Montenegro.”

PowerX’s core business spans the development and manufacture of batteries, scalable modular data centers, and batteries for electric vehicle charging systems, as well as the development and operation of grid-scale battery farms. To date, its BESS has been selected for 153 project sites in Japan, with a cumulative adopted capacity of 2.8 GWh.