On October 9 and 10, Montenegro is hosting a conference titled “Western Balkans Energy Week 2024” – one of the most significant events bringing together over 250 decision-makers, including government officials and private sector leaders from the Western Balkans and Croatia.
Numerous discussions will address pressing topics in the renewable energy sector in the Western Balkans, with the goal of jointly shaping the green transition in the region. Panel participants will have the opportunity to discuss strategies for regional integration, transitioning from fossil fuels to renewable energy, increasing the resilience of energy grids, market challenges, and many other key issues for the energy transition in this part of Europe.
All discussions are designed to provide practical guidance to decision-makers in navigating the complexities of energy transition and maximizing the abundant potential of renewable energy sources (RES) in the region.
At the opening of the conference, the President of the Board of Directors of the Electric Power Company of Montenegro (EPCG), Milutin Đukanović, highlighted the importance of regional cooperation in the development of renewable energy capacities. Many memorandums of cooperation have been signed, but these documents remain mere “dead letters” until project implementation begins, Đukanović noted.
Regarding Montenegro’s potential, Đukanović emphasized that it is particularly important to utilize hydropower infrastructure for the integration of solar power plants, as he said, “we must not waste a drop of water when the sun is shining.” He also stressed the importance of investing in battery system development and proudly pointed out that Montenegro has mastered important technologies necessary for the energy transition.
Marko Kubatlija, Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina, also spoke at the opening of the conference, emphasizing that successful energy sector transition requires the cooperation of all institutions and partners in the region.
“Cooperation in the region is very important because we must not forget that we live in a very dynamic economic world. The two key factors for the development of the Western Balkans are investment and employment. It is necessary to involve small and medium-sized enterprises and give priority to renewable energy sources,” Kubatlija said at the conference’s opening.
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Cooperation as a Key Factor for the Region’s Green Transition
On the first day of the conference, a panel titled “Together for Tomorrow: Strategies for Regional Integration to Enhance Renewable Energy in the Western Balkans” was moderated by Nevena Đukić, Editor-in-Chief of the Energetski portal.
Panel participants – World Bank Director for Bosnia and Herzegovina and Montenegro, Christopher Sheldon, Minister of Energy and Mining of Republika Srpska, Petar Đokić, and Montenegro’s Minister of Mining, Oil, and Gas, Admir Šahmanović – discussed the importance of regional cooperation, what has been achieved so far, and what the plans are for the future.
According to Minister Đokić, it is important to deepen and develop regional cooperation to expand energy capacities, both in production and transmission.
“We must be aware of the problems we have. This year, we faced a technical issue that confirmed how important that cooperation is, and it must be improved with other countries. During meetings with regional ministers, we agreed to form operational working teams and create a joint policy that will encourage investments in the energy sector,” said Đokić.
Montenegro’s Minister of Mining, Oil, and Gas, Admir Šahmanović, reminded attendees that Montenegro remains committed to becoming a member of the European Union in the near future and is consistent with European values that include reducing the use of fossil fuels while increasing RES capacities and improving the country’s environmental image.
When asked by the moderator what the new Draft Law on Security of Supply with Petroleum Products in Montenegro will bring, Šahmanović responded that the law provides for the formation of mandatory reserves in quantities equivalent to 90 days, or three months.
“Reserves will be partly stored as finished products, i.e., one-third in Montenegro, while the remaining reserves will be stored through contracts that allow the purchase of derivatives in emergency situations,” Šahmanović clarified.
Decarbonization – Obligation and Challenge for the Western Balkans
The climate crisis, which becomes more pronounced each year, obliges all countries worldwide, including those in the Western Balkans, to reduce the use of fossil fuels as soon as possible and approach the energy transition with determination.
However, the transition to RES is not an easy task for the Western Balkan countries, given their limited resources for implementing green energy projects.
World Bank Director for Bosnia and Herzegovina and Montenegro, Christopher Sheldon, noted that the region’s potential for green energy production is enormous, both to meet its own needs and for electricity export, providing the Western Balkan countries with a new source of income.
“To achieve the goals set for 2050, significant investments in the green sector are required. We want to support investments at both the government and private sector levels,” said Sheldon.
Nevertheless, the centuries-long dependence on coal in the Western Balkans cannot be eliminated overnight, especially given that many people are still employed in the coal industry. Solutions to this problem include severance payments and worker retraining, which the World Bank is already implementing, said Sheldon.
As Montenegro faces increasing pressure to carry out decarbonization, Šahmanović pointed out that one of the Ministry’s main roles will be to actively reduce the use of fossil fuels. Montenegro has committed to significantly reducing greenhouse gas emissions and increasing the share of RES in final consumption by 2030.
“Work is also being done to reduce the use of petroleum products in transportation and industry through the creation of measures under the National Energy and Climate Plan, which is expected to be adopted by the end of this year. These measures mainly relate to the gradual introduction of biofuels, but also to the development of other alternative fuels,” said Šahmanović.
Republika Srpska is also on the right path to stepping into a green future, although Đokić emphasized that financing sustainable energy projects remains the biggest obstacle slowing down Bosnia and Herzegovina’s energy transition.
“We are aware that the demand for decarbonization is immense, and we have entered this process with a full understanding of the goals. That is why I want to stress the importance of cooperation, especially with European financial institutions, because we don’t have the money or the means to generate money. That’s why we need the help of developed European countries in financing green projects, so the Balkans won’t lag behind on the path of energy transition and once again become some kind of black hole,” Đokić said.
He added that around 50 small hydropower plants have been built in Republika Srpska, along with numerous small solar plants that have reached a capacity of around 120 MW, reflecting significant progress in recent years. He also noted that investments in RES come with considerable pressure on the distribution network, which could threaten prosumers, and expressed hope that the influx of finances and further regional cooperation will eliminate these obstacles.
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