Short description of the overall project

The overall objective of the project is to contribute in meeting the national energy needs while ensuring economically and socially sound development of Montenegro.

The purpose of this contract is to improve the conditions for investments in sustainable energy and development of related legal framework:

•  Improved investment environment for development of renewable energy resources on local level
• National framework for supporting larger use of efficient technologies and RES established.
• Regulatory framework on strategic oil products stocks in place and stock holding structures operational.

Short description of activities financed by the donation

The project consists of the following components:

Component 1: Transposition of the Third Energy Package

• Analysis of the legal and regulatory acts linked/related to the establishment of the  electricity and gas market in force; Gap and Compliance analysis with the Third Energy Package, and the respective identification for its  improvement and enhancement (EU Directives 2009/72 and 2009/73)  taking into account the forthcoming adoption of the new Law on Energy;
• Presentation and discussion with the Ministry of Economics (MoE) on the results of the findings and introduction of the necessary changes in the existing bylaws/rulebooks as well as  for the drafting of new bylaws/rulebooks in the field of electricity and gas in accordance with EU acquis;
• Assessment of the existing capacities of the Energy Regulatory Agency (ERA) and MoE for implementing of the Third Energy Package and setting up capacity-building schemes;
• Development and installation of the Software for the issuing and registry of the guarantees of origin from RES and High Efficiency CHP

Component 2: Preparation for implementation and transposition of Regulation (EU) No 347/2013 on Guidelines for Trans-European Energy Infrastructure

• Analysis of case studies, familiarity with best international practice in the related field;
• Conduct a legal and institutional Assessment, assessing the existing legislation;
• Preparation of Guidelines for Trans-European Energy Infrastructure;

Component 3: Creation of investment environment for development of sustainable energy on local level

• Review of existing Local Energy Plan (LEP) template and the experience of its development and implementation;
• Carrying out an assessment of the procedures for the use of natural resources at the local level;
• Assisting the selected Local Authorities; 
• Providing assistance with drafting of selected bylaws/rulebooks on RES promotion.

Component 4: Implementation of the Directive 2009/119 on oil stock reserves

• Pending the adoption of the primary legislation on oil stocks reserve, assisting in legal drafting of the secondary legislation transposing the EU acquis and in particular, related to the Central Stockholding Entity (CSE) establishment;
• CSE setting up in agreement with the Beneficiary and supporting its operation in terms of capacity building on control and management of oil stocks, administrative support and financing of the initial stage of CSE operation.

Component 5: Development of national framework for supporting larger use of EE and RES technologies

• Carrying out an assessment of the existing supporting schemes  for support of the EE measures and use of RES implemented by various entities at the state and local level;
• Proposing of possible ways of coordination of supporting and incentive measures and mechanism for EE and RES investments by citizens, SMEs and other final consumers. Development of guidelines;
• Developing in coordination with the Beneficiary the methodology for EE and RES projects, preparation and evaluation;
• Capacity-building for the relevant entities for ensuring their larger involvement in incentives’ programmes and relevant EE and RES projects’ implementation;

Component 6: Raising Awareness

• Organising awareness-raising campaign targeting citizens and other targeted groups;
• Preparing and implementing a Project Communication Action Plan.