March 5, 2022
March 5, 2022
Montenegro will join other countries in Southeastern Europe that conduct auctions as a model to support the development of renewable energy sources. Almost all countries in this part of Europe have announced they would introduce them. So far auctions have been held in Albania, Croatia, Greece, North Macedonia and Turkey.
The Ministry of Capital Investments of Montenegro has announced the introduction of auctions within a comprehensive program for raising the share of solar power plants and wind farms in the country’s energy mix, all with the technical support of the European Bank for Reconstruction and Development (EBRD).
Of note, the EBRD has helped other countries in the region, such as Albania, Kosovo*, Serbia, to introduce auctions, which it considers a number one tool for renewable energy growth.
The auctions will be introduced in cooperation with the EBRD
According to the ministry, the program in Montenegro will certainly include a revision of the legislation in order to clarify the framework for competitive procurement of energy from renewable sources and the appropriate support mechanism, as well as the design and implementation of auctions.
The ministry believes that competitive bidding, through which support will be provided under a market-based scheme, would enable the installation of new production facilities at competitive prices while achieving market integration goals. Everything is in line with obligations from the Energy Community Treaty, the ministry added.
The ministry will prepare a new law on renewables
These activities will enable Montenegro to use its wind and solar resources and encourage the use of clean energy in the energy sector, the ministry said.
Montenegro will also prepare a new law on renewable energy sources, which will be developed as part of cooperation with the EBRD.
The law will define the rules for providing support to renewable energy projects, and the transition mechanisms until the establishment of the day-ahead market.
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