Montenegro has fulfilled almost all obligations leading it towards integration into the EU energy market

Montenegro has fulfilled almost all obligations leading to its integration into the European Union energy market, which is why it is becoming an important partner to that community and the countries of the region in this field, and it is sending a strong message to investors that it is safe to invest in renewable energy sources, that investments are protected, and that the country has a legislative framework aligned with the most developed European countries.

This was announced at the first panel "The Importance and Role of the European Union in Creating an Investment Environment in Montenegro", which was held as part of the fifth EPCG NET Energy Symposium, moderated by Biljana Braithwaite, Executive Director of Sustinari-Partners.

Minister of Energy and Mining Admir Šahmanović said that Montenegro has fulfilled almost all obligations leading it towards integration into the European Union energy market, assessing that this is a strong message to investors that the country is a safe and credible place for investments in renewable energy sources.

"I am proud to say today that, together with my team, energy entities, the Agency, CGES and CEDIS, we have managed to do our homework and complete almost all the obligations that lead us towards integration. We are currently in the verification process and are waiting for the European Commission to approve everything we have done, so that we can finally move on to Chapter 15," said Šahmanović.

This means, as he explained, that Montenegro has the same laws as the most developed countries in Europe, such as Germany, Austria, Italy and France.

"I think that's the best possible message we can send to investors," Šahmanović pointed out.

He stated that Montenegro has initiated the process of market integration, recalling that all necessary laws have been adopted, as well as the National Energy and Climate Plan, which has been pending for years.

"This is our path. As we said, we have lost many years and decades in the past. That is why we are very proud that we have launched this investment cycle and that we are no longer just talking about plans and ambitions," said Šahmanović.

He said that now is the right time for Montenegro to seize the opportunity and become an important partner to the European Union and the countries of the region, especially considering the expected growth in energy consumption in Europe due to the development of new technologies, data centers and artificial intelligence.

"According to our calculations, as well as other indicators, energy consumption in the European Union is expected to increase by 300 to 400 percent in the next five to ten years. We see this as an opportunity for us, as a small country, to welcome a time when it will no longer be crucial whether a country is small or large, but whether it has energy or not," said Šahmanović.

Montenegro, as he stated, sees this opportunity in using existing infrastructure, good connections with neighboring countries, an undersea cable with Italy, as well as plans to build a new cable and double capacity.

"This is our opportunity to become an important strategic partner of the European Union, a place from which the European Union can obtain energy from green sources at favorable prices," said Šahmanović.

He stressed that the Government will do everything to keep energy prices low, stating that the reasons for this are the social aspect and the protection of citizens, but also attracting investments in data centers and strengthening energy exports.

"We want to rely our economy more and more on energy and less on tourism," said Šahmanović.

Speaking about the further development of the energy sector, Šahmanović said that Montenegro is not looking for shortcuts, but for partners who can help make up for lost time.

"We have the sun, we have the rain, we have the wind. What we lack is finance and technology. That is why we are looking for opportunities with our strategic partners and eminent companies from around the world, in order to accelerate the process and build large production capacities," said Šahmanović.

According to him, Montenegro, thanks to the existing submarine cable, has already positioned itself as a regional bridge, while with the construction of a second cable, it would become an energy bridge between the Western Balkans and the European Union via Italy.

"When we talk about the submarine cable, Montenegro has already positioned itself as a regional bridge. With the second cable, we will be an energy bridge between the Western Balkans and the European Union, via Italy. Through these phases, we also want to become an energy hub," Šahmanović pointed out.

He assessed that, after the reforms in the legislative framework, it is now necessary to make a step forward in the investment sector, taking into account the strategic position of Montenegro, its resources and everything that has been done so far.

"Just as we have made a kind of renaissance in the legislative part, now we must do the same in the investment part. Considering our strategic position, our resources and everything we have done so far, now is the right time for investments," said Šahmanović.

He recalled the message from European Commission President Ursula von der Leyen, who said during her visit to Montenegro that investing in Montenegro means investing in the European Union, assessing that this sent a clear message to investors.

Šahmanović stated that Montenegro, by using the potential of the submarine cable, is opening up space for large investors, especially in the field of renewable energy sources, but that it is necessary to ensure an adequate mix of technologies.

"We need to have an adequate mix of technologies. We hope to be able to build solar power plants, wind power plants and, of course, hydroelectric power plants. Hydropower plants are perhaps the best and most acceptable form of baseload energy production from an environmental perspective," said Šahmanović.

The Ambassador of the European Union to Montenegro, Johann Sattler, said that Montenegro has shown unity, organizational maturity and credibility, which are important for the European path, but also for strengthening investor confidence.

"One of the most important messages is precisely regional integration and connecting the Western Balkan countries with the European Union," said Šatler.

He recalled that concrete benefits are already visible through the accession of Montenegro and Albania to the SEPA system, which has significantly reduced the costs of money transfers between the European Union and the region.

"When Montenegro and Albania joined the SEPA system, it meant up to 20 times lower costs when it comes to money transfers from the European Union to this region and vice versa," said Sattler.

He also pointed out the importance of further connecting the countries of the region with the single European market, emphasizing the expectation that Montenegro will be the first country to complete this process.

"My expectation is that Montenegro will be the first country to complete this process. In October, we will have an investment event with the European Union in Montenegro. That will be a very important step and opportunity," said Sattler.

He said that the fact that Montenegro is a leader in European integration, but also that it shows commitment to reforms, is of utmost importance for investors.

"The European path is, in essence, the path of reforms. I am pleased that Montenegro is showing leadership and moving in that direction," said Sattler.

He concluded that discussions with investors show real dynamics and interest that was not present to the same extent 12 months ago.

"This is the result of the reforms being implemented today, the processes that have been initiated and the credibility that the European Union is giving to Montenegro," said Sattler.

Minister of Public Works Majda Adžović said that European standards are not an obstacle, but rather one of Montenegro's greatest competitive advantages, assessing that their adoption makes projects of higher quality, more sustainable and more attractive to investors and financial institutions.

"European standards are not an obstacle, but quite the opposite. I believe that they are one of Montenegro's greatest competitive advantages and one of the main reasons why our project portfolio is becoming increasingly bankable and attractive on the international market," Adžović pointed out.

She assessed that the results achieved by Montenegro mean much more than meets the eye, stating that the events and messages sent from international gatherings have further confirmed the credibility of the country among investors.

Adžović pointed out that a strong political message was sent from the Tivat Summit, while investment conferences and events such as the Adria Future Summit represent important platforms for presenting Montenegro and its development potential.

"We can already feel these results. We can feel the momentum in construction and development, greater than ever before. We still have a lot of work ahead of us, especially when it comes to infrastructure and the public works sector. But the standards we are adopting are leading us towards better quality, and better quality is the goal that Montenegro should strive for," said Adžović.

She stated that properly set standards represent the basis for the successful implementation of infrastructure projects and strengthening investor confidence.

"When we set standards in the right way, everything else comes as a result," concluded Adžović.

The Italian Ambassador to Montenegro, Andreina Marsela, said that Montenegro, thanks to its geographical position, proximity to Italy, use of the euro and its European path, has significant advantages for attracting investors and the opportunity to become an energy hub for the entire region.

"Montenegro is not just a neighboring country for Italy, but a country that provides us with access to the entire region," Marcela pointed out.

"This position gives Montenegro the opportunity to become a hub. This is precisely the essence of our cable and the cable doubling project to enable Montenegro to truly become an energy hub for the entire region," said Marcela.

Speaking about the advantages of Montenegro for investors, Marsela pointed out the importance of joining the SEPA system, but also the fact that Montenegro uses the euro as its currency, which, as she stated, represents an important element of stability.

"That's a huge advantage for investors, because they know that the country is stable enough from that perspective to warrant investment," said Marcela.

She added that Montenegro's European path provides an additional framework of stability and predictability, which is of key importance for investors.

"Italian investors, but also other investors from European Union countries, want to invest money in a country that provides sufficient guarantees in terms of credibility, market predictability and the economic situation," concluded Marcella.

The Head of the EBRD Office in Montenegro, Remon Zakaria, said that the institution sees significant scope for the further development of Montenegro through investments in renewable energy sources, energy infrastructure, transport and strengthening connectivity.

"We are here to help create the conditions for the realization of these investments. When it comes to energy, we clearly see that the private sector can play a significant role, especially in the renewable energy segment, where it can be further involved and contribute to increasing energy production," said Zakaria.

According to him, the EBRD also pays significant attention to the development of energy infrastructure, as it is crucial for further growth in production and the use of renewable energy sources.

"So far, we have invested significantly with EPCG, CGES and other energy entities, in the areas of energy efficiency, transmission lines and distribution. This is crucial, because if you want more energy, you need to have a network that can receive and distribute it," Zakaria said.

He pointed out that, in addition to energy, there is great potential for private sector development in the areas of transport and other key infrastructure.

He concluded that the EBRD sees great needs for greater private sector participation, improving the regulatory framework in line with European Union standards, as well as continuing significant investments that are already in preparation or implementation.

"That's one of the reasons we had a record year, because we have partners, such as the Government, and concrete opportunities that are already in the investment process. We remain here to support Montenegro in its economic development and strengthening connectivity," said Zakaria.

The President of the Board of Directors of the Development Bank, Nikola Tripković, said that this institution is one of the most important instruments for achieving the state's strategic priorities, emphasizing that an additional 200 million euros will be directed towards development projects in Montenegro.

"A significant segment of the Development Bank's activities relates to support for the digital and green transformation of the Montenegrin economy and society, as well as creating conditions for a more balanced regional development of the country," said Tripković.

He assessed that, by establishing the Development Bank, Montenegro has gained an institution focused on investing in development and which, through cooperation with partners, supports the implementation of development projects.

"Our partners are not only financial partners, but also mentors in the implementation of development projects," said Tripković.

He emphasized that the energy sector has the potential to become extremely important for Montenegro, especially considering the projects and investment opportunities that are opening up in that area.

"Today's discussion on the potential of four billion euros in energy shows that this sector can become extremely important for Montenegro," said Tripković.

"We already have smaller projects related to renewable energy sources, solar power plants, and there is also interest in projects in the field of hydropower. We expect that such projects will continue and that we will further develop our economy through them," Tripković said.

He pointed out that economic diversification is of particular importance for the long-term development of Montenegro, emphasizing that the support of the European Union enables the closing of financial gaps in the market.

"The support of the European Union allows us to close certain financial gaps in the market, especially in areas where commercial banks are not sufficiently present or do not have sufficient interest in financing such projects," said Tripković.

He said that the development potential does not only apply to the energy sector, but also to other areas important for the progress of the country.

"The development of credit lines is one of the key tools through which we can support the economy, enable the implementation of development projects and contribute to the sustainable growth of Montenegro," concluded Tripković.

UNDP Resident Representative in Montenegro, Ekatarina Paniklova, said that it is important to have a vision, believe in it and understand what the process of accession to the European Union can bring to Montenegro, especially if investments are made in areas that will create a sustainable ecosystem for change.

"A just transition, an energy transition and a green transition are not a one-day job. It is not a sprint, but a marathon and a journey that requires partners and the commitment of all stakeholders," said Paniklova.

She added that in this process, the fact that there may be those who will be affected by the changes must not be ignored, which is why it is important that these challenges are recognized and responded to in a timely manner.

She singled out Pljevlja as one of the important examples in Montenegro, emphasizing that this region is very important for energy security, stability and the future of the country.

"What we at UNDP have recognized is that it is not just an investment in infrastructure or technology, but an investment in a predictable system, in companies that can manage change, face it and be resilient in crisis and difficult situations," concluded Paniklova.