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Montenegro advances renewable energy goals with New SHPP agreements and EU alignment

According to a recent report on renewable energy projects in Montenegro, the country currently has 29 active concession agreements for the construction of small hydropower plants (SHPP), allowing for a total of 42 facilities. Of these, 33 SHPPs have already been completed, with a total installed capacity of 52.6 MW and an estimated annual electricity generation of 182.4 GWh.

The report indicates that the Ministry responsible for monitoring these concession agreements has encountered various challenges inherited from previous periods. Consequently, it is essential to examine each case carefully and develop appropriate long-term solutions.

Additionally, the report underscores Montenegro’s commitment as a member of the Energy Community and a candidate for European Union membership to align its energy policy with that of the EU. Montenegro has fulfilled its obligation to transpose and implement Directive (EU) 2018/2001, which promotes the use of renewable energy sources. This directive establishes a framework for renewable energy promotion among Energy Community members and sets a target for renewable energy’s share in total final energy consumption, aiming for 50% by 2030 for Montenegro.

The directive was incorporated into the Law on the Use of Energy from Renewable Sources, adopted by the Parliament of Montenegro on 17 August 2024. This legislative move represents a significant step towards aligning with EU regulations, crucial for progressing in the negotiations for Chapter 15 – Energy.

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