EBRD helps Montenegro to increase investments in renewable energy sources

The Government is launching a renewable energy auction programme. Montenegro plans to increase the share of renewable sources in its energy mix through renewable energy auctions, 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 renewable energy auction programme. This technical support was financed by grants from the EBRD, the Austrian Ministry of Finance through the High Impact Partnership for Climate Action (HIPCA) and Italy through the Central European Initiative (CEI).

The goal of the programme is to help Montenegro increase the use of clean energy and build a sustainable and diversified energy sector by creating a favourable 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 programme will 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 in renewables.

We are very pleased to support Montenegro to introduce the best international standards that will help 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 the economy, said EBRD Head of Montenegro Remon Zakaria.

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, in accordance with its priorities in the field of energy, will continue activities to ensure secure energy supply, development of a competitive energy market and sustainable energy development, with active cooperation with everyone who has the same goals, said Deputy Prime Minister and Minister of Capital Investments Ervin Ibrahimović, expressing gratitude for the financial and technical support of European partners.

Almost all electricity in the country is generated by one lignite power plant and two hydro-power plants. 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 the environmental benefits, increased investment in renewable energy sources could potentially help the country diversify its economy, which is strongly dependent on tourism. The existing underwater cable connecting Montenegro to Italy, as well as other interconnections with neighbours, 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.