The EBRD is helping Montenegro to increase investments in renewable energy sources

• Montenegro will introduce a market support mechanism for renewable electricity • Technical cooperation project supported by EBRD, Italy and Austria • The new law on renewable energy sources will help achieve climate goals

The government is launching a program to establish auctions for renewable energy sources.

Montenegro plans to increase the participation of renewable sources in its energy mix through auctions for renewable energy sources, which will attract private investments in this sector.

The European Bank for Reconstruction and Development (EBRD) will support the Ministry of Capital Investments of Montenegro to implement the program for the introduction of auctions. This technical support was financed by grants from the EBRD, the Federal Ministry of Finance of Austria through the "High Impact Partnership for Climate Action" (HIPCA) and Italy through the "Central European Initiative" (CEI).

The goal of the program is to help Montenegro increase the use of clean energy and build a sustainable and diversified energy sector by creating a favorable business environment for private investments. Montenegro, which has a strong wind and solar energy potential, will thus be able to use these resources at competitive prices.

The program will first support the authorities in developing a comprehensive legal framework in the form of a new law on renewable energy sources, which will lay the foundations for accelerating the growth of the share of renewable energy sources. After that, work will be done on the preparation and implementation of competitive public procurements for the allocation of market support for producers of renewable electricity.

Remon Zakaria, director of the EBRD in Montenegro, said:

We are very pleased to support Montenegro to introduce the best international standards that will help to increase investments in renewable energy. By reforming the energy sector, Montenegro will be able to make good use of its rich sources of renewable energy, with a positive contribution to the environment and economy.

Considering that our country has significant potential of renewable energy sources, such as hydro potential, wind potential, solar energy and biomass, our priority was and remains the production of renewable, i.e. clean energy. We want to turn climate and environmental challenges into our opportunities and competitive advantages, by ensuring a fair and inclusive transition towards climate neutrality. Montenegro will continue, in accordance with its priorities in the field of energy, to continue activities to ensure a secure energy supply, the development of a competitive energy market and sustainable energy development, with active cooperation with everyone who has the same goals,

pointed out the Deputy Prime Minister and Minister of Capital Investments, Mr. Ervin Ibrahimović, expressing his gratitude for the financial and technical support of European partners, with the belief that future cooperation on this project will be successful and will contribute to the achievement of common goals.

Most of the electricity in Montenegro is produced in the thermal power plant Pljevlja and the hydropower plants Perućica and Piva. Competitive procurement processes for renewable energy sources will enable Montenegro to increase its share in solar and wind projects and reduce its dependence on coal.

In addition to environmental benefits, increased investment in renewable energy sources could potentially help the country diversify its economy, which currently relies heavily on tourism. The existing underwater power cable connecting Montenegro to Italy, as well as other interconnections with neighboring countries, could help position the country as a clean energy exporter.

The EBRD supports Montenegro in the development of a sustainable and diversified energy sector through political dialogue, technical assistance and investments. To date, the EBRD has invested more than 700 million euros in Montenegro.