Energy efficiency

State of compliance

With the recent adoption of the fourth Energy Efficiency Action Plan for the period 2019 - 2021 and amendments to the Energy Efficiency Law, transposition of the Energy Efficiency Directive has been improved. Overall, Montenegro has achieved a relatively high level of transposition of the energy efficiency acquis. However, efforts must continue to update and adopt secondary legislation and achieve effective implementation in practice.

  • Energy Efficiency Directive

    Energy Efficiency Directive

    The Law on Efficient Use of Energy adopted in December 2014 (compliant with Directives 2006/32/EC, 2010/30/EU and 2010/31/EU and partly with Directive 2012/27/EU) was followed by the adoption of a comprehensive package of secondary legislation (promoting the leading role of the public sector in energy efficiency, development of programmes and plans for municipalities and big energy consumers, energy efficiency in public procurement, energy audits, etc.).

    The Law on Amendments to the Law on Efficient Use of Energy was adopted by the Parliament of Montenegro in April 2019 and entered into force in May 2019. The new Law ensures further alignment with the Energy Efficiency Directive - with new or improved obligations regarding the development of a building renovation strategy, a methodology and a centralised system for monitoring and reporting on implementation of energy efficiency measures and achieved energy savings, an energy management system, etc. The Law also establishes a new inspectorate for energy efficiency in order to achieve better implementation of the existing and new legislative provisions.

    Supported by the Regional Energy Efficiency Programme and GIZ, the Ministry of Economy analysed implementation of Article 7 of the Directive (energy efficiency obligation schemes) through alternative measures. However, the official notification required under Article 7 to the Secretariat is still pending. Regarding Article 14 (promotion of efficiency in heating and cooling), the results of an EU IPA study on the potential for district heating and/or cooling and high efficient cogeneration were analysed. This resulted in an Action Plan for the promotion of district heating and/or cooling and high efficient cogeneration expected to be adopted by the end of 2019.

    Montenegro continues to miss the following reporting deadlines: 30 March 2017 for Article 4, 15 March 2017 for notification under Article 7 and 30 June 2019 for the third Annual Report. The second Annual Report under the Energy Efficiency Directive was submitted to the Secretariat in November 2018.

  • NEEAPs and targets

    NEEAPs and targets

    The fourth Energy Efficiency Action Plan (EEAP) for the period 2019 - 2021, in line with the requirements of Directive 2012/27/EU and the NEEAP template, was finalised timely and approved by the Government of Montenegro on 27 June 2019.

    The 2020 primary and final energy consumption cap targets and the Article 7 target under the Energy Efficiency Directive, required by the amended Law on Efficient Use of Energy, are set by the fourth NEEAP, which also includes the measures and instruments for their achievement.

    The exemplary role of the public sector is being promoted by both the fourth EEAP and national legislation.

    The implementation of Article 5 of Directive 2012/27/EU is ongoing –  a 1% annual reconstruction target for central government buildings was set by a 2016 Decree adopted by the Ministry of Economy, and reconstruction activities are being performed.

  • ESCO market development and financing

    ESCO market development and financing

    Montenegro has adopted an enabling legal framework (the Law on Efficient Use of Energy) and drafted model contracts for energy performance contracting in public buildings, water supply systems and public lighting. The fourth National Energy Efficiency Action Plan of 2019 envisages measures and financial mechanisms for ESCO pilot projects in municipalities and the broader public sector.

    However, the development of the energy services market of Montenegro is slow and hindered by the delay in adoption of a draft Public Private Partnership Law, which defines a clear procedure for tendering and contracting of ESCO projects in the public sector.  

  • Energy efficiency in buildings

    Energy efficiency in buildings

    The requirements of Directive 2010/31/EU are transposed by the Law on Efficient Use of Energy and through a set of rulebooks adopted in December 2015. The rulebooks deal with setting minimal energy performance requirements in buildings, certification, regular inspection of heating and air-conditioning systems and energy audits of buildings. The issuance of energy performance certificates is obligatory form January 2016.

    However, certain requirements of the Directive (i.e. cost-optimal calculations, nearly zero-energy building targets and strategies) have still not been implemented in practice. Therefore, Montenegro is not fully compliant with Directive 2010/31/EU. The process of establishing a comprehensive buildings inventory, a calculation software and an analysis of cost-optimality of current performance requirements is ongoing, supported by international technical assistance.

    As mentioned above, the Ministry of Economy adopted in 2016 a Decree on the Reconstruction of State Administration Buildings, which sets a 1% annual reconstruction target for central government buildings, and prioritizes buildings with lowest energy performance. A three-year plan for the reconstruction of central government administrative buildings (2017 - 2019) was adopted by the Government. The plan includes an inventory of buildings and defines the measures to achieve the 1% annual target.

    During this reporting period, Montenegro continued implementing several successful building rehabilitation programmes. However, Montenegro is still missing a comprehensive building renovation strategy, especially for the residential sector. Missing the deadline foreseen by the Energy Efficiency Directive (30 March 2017), Montenegro still needs to develop the long-term strategy for mobilising investment in the renovation of the national stock of residential and commercial buildings, both public and private.

  • Energy efficient products - labelling

    Energy efficient products - labelling

    Additional efforts are needed to fully align Montenegro’s regulatory framework with the Labelling Regulation. The Law on Efficient Use of Energy transposed requirements of Labelling Directive 2010/30/EU and partly Regulation (EU) 2017/1369. However, Montenegro still needs to fully transpose the package of delegated regulations on labelling of energy-related products, as adopted by the Ministerial Council Decision of November 2018 (Decision 2018/03/MC-EnC), with the general implementation deadline expiring in January 2020.

    Previously, Montenegro adopted rulebooks on obligatory labelling of household washing machines and air conditioners, energy labelling of household refrigerating appliances, televisions, dishwashers, and electrical lamps and luminaries. Montenegro also adopted seventeen eco-design rulebooks − setting up minimum energy performance requirements for household appliances and also some industrial products such as electric motors, water pumps, ventilators, etc.

    Since 2016, the Administration for Inspection Affairs is responsible for market surveillance in the area of energy labelling and eco-design. A process of capacity building of market inspectors was successfully implemented and market inspections are being regularly performed.

  • Institutional capacities

    Institutional capacities

    The key state body responsible for the implementation of national energy efficiency policy in Montenegro is the Ministry of Economy. The recent change in the status of the Directorate for Energy Efficiency within the Ministry of Economy to a department within the Directorate for Energy might significantly reduce the capacities and capabilities for the implementation of energy efficiency policy reforms in Montenegro.

    With the recent amendments of the Law on Efficient Use of Energy, Montenegro plans to increase capacities for market surveillance and enforce implementation. In November 2018, the Government of Montenegro established the Eco Fund (based on the Law on Environment), but it is still unclear to what extent this fund will support energy efficiency projects. 

    Montenegro still has to adequately strengthen its institutional capacities by reinforcing the capacities within the Ministry of Economy and local administration by establishing a specialized energy efficiency agency and/or by utilizing the capacities of obliged parties through the implementation of energy efficiency obligation schemes.