Renewable energy

Implementation indicators

  • National Renewable Energy Action Plan

    National Renewable Energy Action Plan

    Montenegro exceeded its overall 2020 renewables target as well as sectorial targets for electricity and heating and cooling. However, the share of renewables in transport remains low. Montenegro submitted its third Progress Report on implementation of the Renewables Directive to the Secretariat with significant delay.

  • Quality of the support schemes

    Quality of the support schemes

    Based on the Energy Law, administratively set feed-in tariffs are applicable for projects up to 1 MW, while support schemes for larger projects have to be awarded in a competitive process. Secondary legislation,which would provide clarity and predictability for the implementation of auctions, is lacking. So far, two locational auctions, i.e. tenders for the right to build on state-owned plots of land, were held.

  • Integration to the grids

    Integration to the grids

    According to the Energy Law, priority dispatching applies to electricity generated from renewables. All privileged producers, the ones under the support scheme, are exempted from balancing responsibility, which is not in line with the State Aid Guidelines. Rules and procedures for connection of renewable energy producers need to be improved.

  • Administrative procedures and guarantees of origin

    Administrative procedures and guarantees of origin

    While the Law on Administrative Procedures ensures transparency, objectivity and non-discrimination of the rules, procedures for permitting, construction and licensing are yet to be streamlined and simplified. A single administrative body is not established. An electronic mechanism for issuing, transfer and cancellation of guarantees of origin is under development.

  • Renewable energy in transport

    Renewable energy in transport

    Sustainability criteria for biofuels and bioliquids are transposed. A verification body is yet to be established although it is prescribed by the Energy Law and the Decree. The share of renewables in the transport sector was below 1% in 2018.

State of compliance

There were slight improvements in the transposition and implementation of the renewable energy acquis in the reporting period. In July 2020, Montenegro adopted amendments to the Energy Law to provide more clarity on the electronic register for guarantees of origin and on a self-consumption scheme, which is yet to be promoted in practice. A new wind farm was put into operation in 2019, while a new locational auction for 100 MW of wind was finalized in 2020.

According to the recently adopted amendments to the Energy Law, the Electricity Market Operator replaced the Energy Regulatory Agency as issuing body of guarantees of origin. As reported, an electronic system is under preparation. To assure compatibility with the standardized European Energy Certificate System, Montenegro applied for membership in the Association of Issuing Bodies (AIB), where it currently holds observer status.

Despite the progress made in conducting locational auctions based on the Law on State Property, Montenegro should focus on adopting a legal and regulatory framework for a market- based support scheme in line with the State Aid Guidelines.

Although sustainability criteria for biofuels and biodiesel were adopted in 2018, transposing the required legal provisions, implementation in practice should be prompted to achieve the renewables target in transport. Administrative procedures should be streamlined and simplified by establishment of a one-stop shop system.