May 21 (SeeNews) - Montenegrin state-run power utility Elektroprivreda Crne Gore (EPCG) [BEL:EPCG] said it has signed a Memorandum of Understanding (MoU) with Austrian company Ivicom for the construction of a 50 MW wind farm.
The total investment in the wind farm, named Gvozd and located in the municipality of Niksic, will stand at 70 million euro ($82.2 million), EPCG said in a statement on Friday.
The project will be profitable as the 400 kV undersea cable linking Italy to Montenegro offers opportunities for the export of green energy to the Italian and European markets, the executive director of EPCG, Igor Noveljic, said.
The construction of the wind farm will be financed through loans which will mostly be provided by international financial institutions, EPCG said.
In November, France's Akuo Energy and Austria's Ivicom launched the Krnovo wind farm in Montenegro via their local subsidiary Krnovo Green Energy. The project had an estimated cost of 120 million euro, with 48.5 million euro coming from a senior loan extended by the European Bank for Reconstruction and Development (EBRD).
($ = 0.8512 euro)