Montenegro launches first auction process for renewable energy sources

The Ministry of Energy and Mining today announced a public call for the award of market premiums for renewable energy projects, officially opening the first auction process in the history of the Montenegrin energy sector.

The Ministry announced that this important phase followed after the Government adopted the Tender Documentation and a set of accompanying documents on Thursday, thus fulfilling all regulatory prerequisites for launching this strategically important mechanism.

"This is a turning point for the domestic energy sector, for the first time Montenegro is applying a market model for allocating support for renewable sources, which enables fair competition among investors, ensures transparency and maximizes the protection of public interest," the statement said.

The Ministry said that there are multiple benefits for the state, the economy, and citizens.

"It is about energy security because new capacities from domestic, renewable sources guarantee greater resilience and long-term stability of the electricity system. Then there is economic development because new investment partnerships are being opened, with strong effects on the economy, as well as market competitiveness because a fair, transparent and predictable framework for granting support is being established, which strengthens trust and the investment environment," the statement said.

In addition to the multiple benefits from the Ministry, they also mentioned the European path because Montenegro is showing full commitment to reforms and fulfilling key obligations from the European Union accession process, with a focus on increasing the share of RES and accelerating decarbonization.

The auction process is the crowning glory of comprehensive regulatory reform.

"The Law on the Use of Energy from Renewable Sources has been adopted, a new Energy Law has been enacted, fully harmonized with EU legislation, and a set of bylaws has been finalized," the statement added.

The Ministry said that the first auction process is not just a technical step, but proof that Montenegro is building a modern, sustainable and fair energy system, in which public interest and investments go hand in hand.

"In this way, Montenegro once again confirms its role as a credible, reformist and pro-European partner," the statement concludes.