The European Bank for Reconstruction and Development (EBRD) said that, with its support, Montenegro will launch a program with the goal of establishing renewable energy (RES) auctions, thus attracting private investments in the energy sector .
The statement from the bank said that it is supporting Montenegrin Ministry of Capital Investments in the implementation of the program with technical assistance, financed through grants from the bank, Austria and Italy.
The program will support the Montenegrin authorities in drafting renewable energy legislation, which will be followed by assistance in the design and implementation of a competitive bidding process to award market-based support for renewable electricity producers.
Currently, the majority of the country’s electricity is provided by coal-fired thermal power plant Pljevlja and two large-scale hydropower plants Perucica and Piva. Competitive procurement processes for renewables will allow the country to increase its share of solar and wind projects and decrease its reliance on coal.
In addition to environmental benefits, boosting investments in renewables could potentially help the country diversify its economy, which currently relies heavily on tourism. The existing underwater electricity cable that connects Montenegro with Italy, as well as other interconnections with neighboring countries, could help position the country as green energy exporter.