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I rushed the capitol, converting all resources into horses. But the only chance I had was that Morgoth wouldn't manage to build his fourth tower for the meteor spell. On turn 131, I entered the treasure room. Morgoth tried to cast the spell, but due to the shifted guard, he lost movement points and didn't make it. This allowed me to capture the hive and gain 1 spell point, which enabled me to force the demon to retreat. And only then, on the next turn, the demon settled in the fourth tower in the Necropolis with troglodytes. But the single horses and hit-and-run attacks with archers did the trick.
Thank you for the game!