Montenegro has adopted the Law on the Use of Renewable Energy Sources, marking a significant step towards improving the sustainability of its energy sector. This first such law in the country introduces a new framework for encouraging investments in the field of renewable energy, with the goal of reducing carbon dioxide emissions and increasing the production of energy from clean sources.
The Minister of Energy of Montenegro, Saša Mujović, emphasized that this law places Montenegro on the map of countries committed to transitioning to renewable energy sources. The new law replaces the previous incentive model, where the state was obligated to purchase energy produced from renewable sources.
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It was explained that the state was required to buy electricity from renewable energy producers, with 85 percent of the funds provided by the Electric Power Industry of Montenegro (EPCG) and the remaining 15 percent by citizens. Instead, market premiums have now been introduced, which will allow energy to be sold on the free market, reducing costs for citizens, according to OIE Serbia.
One of the key provisions of the law concerns the introduction of an auction system for renewable energy projects, expected by 2025. These auctions will open the door to new investments in renewable energy, enabling better integration of these sources into Montenegro’s energy system.
The European Bank for Reconstruction and Development (EBRD) has provided significant support in the development of this law, including assistance in drafting the law. The auctions are crucial for attracting investments, and the EBRD has previously stated that the first auctions for renewable energy sources are expected to be announced by next year.
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