Renewables

Montenegro to start phasing out feed-in tariffs for renewables in 2020

Photo: Montenegrin Government

Published

December 25, 2018

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Published:

December 25, 2018

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The Government of Montenegro has decided to start gradually reducing feed-in tariffs for renewable energy sources as of January 1, 2020, and announced it will continue to promote the construction of wind farms, solar power plants, and large hydropower plants without guaranteed incentive prices, Montenegrin media reported.

The government has adopted regulations that will put an end to financial incentives for renewables, and also limit the fee households pay for incentivizing this type of electricity generation, Economy Minister Dragica Sekulić has said, adding that the customers’ bills for the consumption of up to 300 kWh will not increase in coming years.

The government has adopted the Decree on the method of qualifying for and the amount of incentive prices for electricity produced from renewable energy sources and high-efficient cogeneration, which scraps the Decree on the tariff system for determining the incentive prices for electricity produced from renewable energy sources and high-efficient cogeneration, and also amended the Decree on incentive fees to encourage production from renewable energy sources and high-efficient cogeneration.

Sekulić said that the decrees were adopted after an analysis of current trends in this sector and practical confirmations that further renewable energy development of in Montenegro is possible without the incentives.

In its 2018 report on Montenegro, published in April, the European Commission said that in 2016, 41.6% of energy gross final consumption came from renewable sources, exceeding the 33% target for 2020.

The country needs to switch to an auction system compliant with the 2014-2020 Guidelines on State aid for environmental protection and energy, the European Commission suggested.

First tendering procedure to be for windfarm

At the same session, the government decided not to issue energy licenses in the upcoming period, nor grant concessions for the construction of small hydropower plants (SHPPs).

The Ministry of Economy will continue to promote the construction of windfarms, solar power plants, and large hydropower plants without guaranteed incentive prices, Economy Minister Dragica Sekulić said.

According to her, the next public call for the construction of a power plant is planned for the end of the first quarter of 2019.

At the end of October, Montenegrin Prime Minister Duško Marković announced fresh tendering procedures for the leasing of state land intended for the construction of power plants using renewable energy sources.

The first will be a tendering procedure for the construction of a wind farm in the continental part of the Bar and Budva municipalities, he added.

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