More than a half of the funds aimed for free loan project for purchase and installation of modern biomass heating systems – pellet and briquette – have been used in Montenegro so far, in the Energy Wood III phase.
The Ministry of Economy of Montenegro, that provided funds in the amount EUR 85.000 for implementing a project to switch to cleaner fuels, reported that over 130 loans have been approved since October 16, when the program was implemented.
“Energy Wood program enables citizens to apply for 0% interest rate loans will range up to EUR 3,500, with a repayment period of 5 years and to purchase and install a heating system on modern biomass fuels, like pellet and briquettes”, the Ministry statement reads.
The program allows citizens to replace old heating systems with modern efficient technologies, which have less operational costs and significantly less negative impact on the environment, under favorable conditions – through interest-free loans up to EUR 3,500 with a repayment period of up to 5 years.
Previous two projects that were implemented in the past four years with the support of the Luxembourg Development Cooperation Agency and the Government of Norway, resulted in installment of 775 biomass heating systems.
The program Energy Wood aims at reducing the interest rates for clients, as well as the risk for financial institutions, encouraging the development of partnerships between commercial banks and distributors of biomass heating equipment, as well as reducing total greenhouse gas emissions through the installation of a biomass heating system.