Montenegro needs stable and innovative ways of energy efficiency financing

The legal framework for implementation of energy efficiency measures in Montenegro is adequate but it encounters several barriers, including lack of financing, the round table on energy efficiency organized by NGO Green Home on the occasion the EU Sustainable Energy Week (EUSEW) was told. The solution could be also provided through public-private partnerships (PPP) and ESCO models.

The participants identified lack of administrative capacities and expert knowledge on state and local level as the main barrier for the energy efficiency improvements in Montenegro. Insufficient cooperation and coordination of the activities has been also listed as one of the barriers.

One of the challenges is the fact that the state doesn’t provide sufficient support for the implementation of the energy efficiency action plan. The participants estimated that Montenegro has invested important sum of money in the energy efficiency but that the country needs national fund which will secure continuous investments in the sector.

PPP possible solution for lack of financing

Managing Director of GGE Montenegro Siniša Janjušević said that financial obstacles could be addressed by the involvement of private sector. This sector could substantially support the public sector in upgrading energy efficiency through transparent investments.

He said that the PPP model provides way for public sector to save energy, attract investment and secure business opportunities for public companies, like engineering, adding that it is not true that only private business gains from PPP. He added that Montenegro has yet to develop the law on PPPs.

“We as an ESCO partner guarantee savings. If we miss the target, we pay penalties,” he said, adding that GGE is also oriented to cooperation with commercial partners and industry sector.

Janjušević pointed out that 90 percent of energy efficiency projects in the Czech Republic are implemented through ESCO model.

The biggest project in which GGE participates in Montenegro, Janjušević said, is switching of the famous winery Plantaže AD to biomass by installation of a new biomass steam boiler and use of wine cuts as new biomass fuel.

At the round table “Energy efficeiency in Montenegro, challenges in the implementation of energy efficiency policy” various stakeholders had an opportunity to learn about ESCO model contract and PPP.

The gathering was attended by representative of local authorities, the Ministry of Economy,  Environment Agency , German organization Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), as well as representatives of business and civil society organizations.

Participants said that investing in energy efficiency can contribute to the climate goals since the building sector is responsible for 33 percent of CO2 emission.The need for integration of plans developed in the frame of climate end energy policies was therefore highlighted.

The round table was organized in the scope of the Clean Air for Montenegro project financed by European Climate Foundation.