Montenegro gets first Law on the Use of Energy from Renewable Sources

Members of the Parliament of Montenegro have voted for the country’s first Law on the Use of Energy from Renewable Sources. Numerous novelties include an incentives scheme for investments in renewables.

The goal of the law is to reduce carbon dioxide emissions and increase the production of energy from renewable sources, Minister of Energy Saša Mujović said in Parliament of Montenegro, local media reported.

He noted that the law is necessary to complete chapter 15 of the negotiations on joining the European Union. The adoption deadline was December 31, 2022, the minister pointed out. Mujović added that the Energy Community Secretariat gave a positive opinion on the law.

Of note, the ministry earlier said that the law fulfills the country’s obligations towards the Energy Community regarding the transposition and implementation of the EU’s Renewable Energy Directive (2018/2001).

The law is aimed at fulfilling EU accession obligations

The minister now explained that the intention is improve the environment in a way to enable Montenegro to meet its obligations on its path to the EU as soon as possible. They consist of reducing CO2 emissions and boosting renewable energy production, he added.

Mujović said that under the current incentives scheme, the government must purchase renewable electricity. State-owned power utility Elektroprivreda Crne Gore (EPCG) covered 85% of the funds so far and the rest came from the citizens, he asserted.

The new incentives system will reduce citizens’ expenses

The law stipulates a new model for incentives, based on market premiums, according to Mujović.

He underscored that the government wouldn’t be obliged anymore to offtake the renewable electricity, lowering significantly the costs for citizens. The energy will be sold on the market, Mujović added.

The law also introduces auctions.

The European Bank for Reconstruction and Development (EBRD), which advised the government, earlier said it expects the country to launch the first renewables auctions by 2025.