Montenegro and Italy have signed a Memorandum of Understanding (MoU) to link their electricity markets, marking a new phase of cooperation and reinforcing Montenegro’s role within the European energy network.
Both governments emphasized that closer energy integration will enhance supply security, system stability, and create new opportunities for economic growth.
Energy and Mining Minister Admir Šahmanović stated that the agreement confirms Montenegro’s position as a reliable regional energy partner and a bridge between the Western Balkans and the European Union. After several years of limited progress, the new MoU is expected to revive collaboration with Italy and open the path toward constructing a second submarine electricity cable between the two countries. This new interconnection would enable Montenegro to export renewable and low-carbon energy more competitively, generating additional revenue and deepening its integration with the European energy market.
The initiative builds on the existing undersea cable already connecting Montenegro and Italy but goes further by establishing a shared electricity market and harmonized energy policies. These measures aim to facilitate smoother electricity flows and enhance grid reliability on both sides.
Montenegro’s electricity market currently comprises 29 companies from 13 countries, reflecting rising investor confidence and international participation. Since the launch of the day-ahead market in April 2023, around 900 GWh of electricity has been traded, with total trading volume — including long-term contracts — reaching about 3 TWh.
The memorandum’s implementation is expected to triple trading volumes, attract new investment, and strengthen overall energy security. Minister Šahmanović described the agreement as a milestone that brings greater stability, trust, and opportunity for Montenegro, noting that since March 2025 the Ministry has accelerated key projects and tightened implementation schedules. He emphasized that this memorandum represents both the culmination of those efforts and a foundation for Montenegro’s integration into Europe’s clean energy future.
