Energetics

The energy sector is one of the pillars of Montenegro’s overall sustainable development. Montenegro’s energy sector is developing in line with EU policies and is open to private, domestic, and foreign investments. The high level of alignment of the regulatory and legal framework with the EU regulations is confirmed through the conclusions of the Energy Community, as well as through the membership of the Energy Regulatory Agency in ACER. A key signal to investors is the successful operation of the Montenegrin Power Exchange.

In addition, the implementation of significant investments in the transmission and distribution system and the opportunity to utilize the submarine electricity cable between Italy and Montenegro can be stimulus for investments in the energy sector. All the more so due to the fact that energy mix is structured as follows: the share of oil derivatives and electricity is around 46% and 30% respectively, while the rest goes to biomass – noting that there are no oil derivatives produced in Montenegro, which indicates the need to increase the share of electricity in this structure.

The majority of the installed capacity in the electricity sector comes from renewable energy sources, as presented in the table below:

The structure of the electricity sector, from the perspective of market participants, is presented in the following table:

Moreover, the structure of market participants, particularly the number of registered traders, represents an additional incentive for investment in new production facilities.

Of the ongoing projects, the following stand out:

• Alcazar Energy with the installed capacity of 118 MW; Investitor: Alcazar Energy Investment Fund from Luxemburg,
• Wind power plant Brajići with the installed capacity of 101 MW, Investor Consortium: WPD AG,
• Wind power plant Gvozd with the installed power of 55 MW, Investor: Elektroprivreda Crne Gore.

In addition to these projects, the planned Komarnica hydroelectric power plant is of special importance for the energy sector.

The preparation of the conceptual design and the Elaboration of the impact on the environment are currently underway. In the study »Regional strategy for sustainable hydropower in the Western Balkans – WBIF«, prepared with the support of the EU, the HPP Komarnica project was assessed as a »Greenfield project, which does not face serious bottlenecks or environmental and social concerns«. Also, the EC adopted the Economic and Investment Plan for the countries of the Western Balkans, in which, within Flagship 4 – Renewable energy, the HPP Komarnica project was evaluated as one of four projects to be supported.