Montenegro Launches First Renewable Energy Auction with European Bank Support

Strategic Insights -

Montenegro has taken a major step in its transition to a market-based renewable energy sector with the launch of its first renewable energy auction. The auction, backed by the European Bank for Reconstruction and Development (EBRD), aims to secure 250 megawatts (MW) of solar power generation capacity. This initiative follows the successful adoption of the Renewable Energy Sources (RES) Law, which was developed with EBRD support and aligns with the EU's new Renewable Energy Directive (RED II). The auction is part of a broader technical assistance program provided by the EBRD's Renewable Energy Market Accelerator (REMA), supported by Austria, Italy, and the European Union.

Key Takeaways:

  • The renewable energy auction aims to secure 250 MW of solar power generation capacity, marking a significant step in Montenegro's transition to a market-based renewable energy sector.
  • The auction follows the adoption of the Renewable Energy Sources (RES) Law, which was developed with EBRD support and aligns with the EU's new Renewable Energy Directive (RED II).
  • The initiative is part of a broader technical assistance program provided by the EBRD's Renewable Energy Market Accelerator (REMA), supported by Austria, Italy, and the European Union.
  • The EBRD's assistance has supported the introduction of competitive bidding and other market-based mechanisms, ensuring alignment with Montenegro's commitments under the Energy Community Treaty.
  • The auction represents a major milestone in Montenegro's energy transition, supporting the diversification of the country's economy and energy mix while enabling renewables to be integrated into the national grid at scale.
  • The EBRD is a leading institutional investor in Montenegro, having invested EUR950 million through 99 projects to date.
  • The EBRD's Renewable Energy Market Accelerator is currently helping 17 countries to prepare and conduct renewable energy auctions, achieving contracts for more than 8,500 MW of capacity in nine countries.

Statistics:

  • 250 MW of solar power generation capacity will be secured through the auction.
  • The EBRD has invested EUR950 million in Montenegro through 99 projects.
  • The EBRD's Renewable Energy Market Accelerator is supporting 17 countries in preparing and conducting renewable energy auctions.
  • Nine countries have signed contracts for more than 8,500 MW of capacity as a result of the EBRD's renewable energy auction support.
  • The auction follows the adoption of the Renewable Energy Sources (RES) Law, which entered into force in August 2024.

Sources:

  • European Bank for Reconstruction and Development press release: "Montenegro launches its first renewable energy auction".
  • Renewable Energy Market Accelerator (REMA) program details: "Supporting the development of renewable energy auctions in Montenegro".
  • European Union (EU) press release: "EU supports Montenegro in enhancing its energy independence and security".
  • European Bank for Reconstruction and Development (EBRD) website: "Montenegro".
  • Ministry of Energy and Mining, Montenegro: "Launch of competitive renewable energy auctions".