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In-Depth Review of the Energy Efficiency Policy of Montenegro (2018)

Published in 2019

Background

An in-depth review of the energy efficiency policy of Montenegro was conducted in 2018 and published in 2019. This review report has been prepared by the Energy Charter Secretariat in cooperation with the Ministry of Economy of Montenegro. The peer review team was composed of officials from countries that are parties to the Protocol on Energy Efficiency and Related Environmental Effects (PEEREA), Energy Charter Secretariat and international organisations: Mr. Mihai Ramniceanu,  Director of Energy Efficiency Division of Energy Regulatory Authority (ANRE), Romania, Chair of the Review, Dr. Peter Gvero,  Professor of the University of Banja Luka, Faculty of Mechanical Engineering Banja Luka, Bosnia and Herzegovina, Mr. Jan Ciampor, Energy Efficiency Policy Officer, Ministry of Industry and Trade, Czech Republic, Mr. Borko Raicevic, Energy Efficiency Expert, Energy Community Secretariat, Ms. Sarah Keay-Bright, Head of the Energy Efficiency Unit, Energy Charter Secretariat and Dr. Oleksandr Antonenko, Energy Efficiency Coordinator, Energy Charter Secretariat.

Montenegro is one of the smallest countries in Europe that is committed to joining the EU and is implementing reforms and harmonizing its policies with the EU acquis communautaire. The state body responsible for Montenegro’s energy policy,  development of energy efficiency legal framework and implementation of energy efficiency measures is the Ministry of Economy. The ministry  has concrete obligations under the Energy Community Treaty to transpose EU Directive 2012/27/EC,  2010/31/EC and 2010/30/EU and regulations related to energy efficiency into the national legal framework. The European Union is the largest provider of financial assistance to Montenegro, and this support is closely connected with the country’s accession to the EU.

 Due to the significant changes in the structure of  Montenegrin economy and substantial structural shift from industry to services, the total final consumption decreased by 19%, while the total electricity demand reduced by 32% during the last decade. Montenegro is not an oil or gas producer, and imports all oil products. There exists no natural gas or heat market in Montenegro as the country does not have access to natural gas. The Montenegrin energy price policy underwent major reforms over the last decade, including the establishment of the regulator, abolishment of cross-subsidies, introduction of explicit price components and the opening of the electricity market for all consumers.

 Development of renewable energy is one of the key priorities of the Energy Development Policy and the Energy Development Strategy of Montenegro until 2030. The Law on Energy complies with EU Directive 2009/28/EC and recognises obligations to adopt a National Renewable Energy Action Plan (NREAP) and the determination of the national RES targets, that was determined at a level of a 33% share of energy produced from RES in the gross final energy consumption by 2020.

The in-depth review of the energy efficiency policy of Montenegro includes general and specific recommendations per sector, comprising power sector, industry, buildings, energy-using products and transport. The final report is available in English while the executive summary and recommendations are also available in Montenegrin.