Montenegro's Renewable Energy Law paves the way for accelerated growth in renewables

In a letter to Montenegro's Ministry of Energy, the Energy Community Secretariat confirmed that Montenegro’s newly adopted Renewable Energy Law aligns with the EU’s Renewable Energy Directive. The law, which was passed on 17 August, demonstrates Montenegro's strong commitment to achieving its climate and energy targets.

“Montenegro's adoption of the Renewable Energy Law represents a pivotal moment, setting the stage for a new wave of investment in renewable energy,” said Naida Taso, Senior Renewable Energy Expert at the Energy Community Secretariat. The Secretariat played a key role in the law's development, offering multiple rounds of feedback, engaging in direct exchanges with the Ministry of Energy, and providing a letter of support for the law’s submission to Parliament.

One of the law's key provisions is the introduction of an auction system to support renewable energy projects. The first auctions are expected in 2025, opening the door for new investments and enabling better integration of renewable sources into Montenegro’s energy system.

The law also includes the issuance of guarantees of origin, a crucial tool that facilitates long-term contracts between renewable energy providers and purchasers through Power Purchase Agreements (PPAs). This is expected to significantly boost investment in the sector.

Additionally, the law introduces the concept of renewable energy communities, empowering individuals and local groups to actively participate in the production, management, and use of renewable energy.

The priority now is to accelerate the adoption of the necessary secondary legislation and ensure timely implementation. The Energy Community Secretariat will monitor the law’s implementation and continue to provide support as needed.

A dedicated Renewable Energy Coordination Group has been established to facilitate the exchange of experiences among Contracting Parties, the European Commission, and EU Member States regarding the implementation of the Renewable Energy Directive. The next meeting of the group is scheduled for November, alongside the 2nd Conference on Advancing Renewable Investments.