Sunday, October 17, 2021
HomeFinanceEBRD to help Montenegro unlock its renewable potential

EBRD to help Montenegro unlock its renewable potential

The European Bank for Reconstruction and Development (EBRD) has adopted a new country strategy for Montenegro for the period 2021-2026. Among the priorities, the EBRD has included support for Montenegro’s green economy transition.

Currently, almost all electricity in the country is generated by one lignite power plant and two hydro-power plants, the production of the latter varying in line with hydrological conditions while only two private wind plants have been commissioned since 2017.

Thus, Montenegro has good potential for renewable energy sources. The Bank will combine investment in renewables with policy engagement to increase renewable energy capacity and decarbonising the energy sector.

In recent years, and particularly since EU accession negotiations formally launched in 2012, Montenegro has implemented a number of structural reforms and other measures to support broad-based economic growth. While the new government has not yet set out its economic policies in detail, it is expected to integrate networks with the region and EU. Also, to further liberalise the energy market focusing on increasing renewable generation and market trading arrangements and there are significant energy saving potentials, particularly in buildings.

The priority of the EBRD is to invest in low carbon and climate-resilient municipal infrastructure and related services, including water and wastewater, waste management and district heating.

In particular, it aims to provide direct and intermediated finance to further develop and integrate renewable energy projects (primarily wind and solar), coupled with an advisory to support the implementation of best market practices and environmental and social standards, as well as to promote greater climate resilience. It also plans to help further increase the electrical grid’s capacity to absorb renewable energy through expanded use of smart grid and metering tools and other measures to encourage private investment.

Sign up to our biweekly newsletter


    Most Popular