Renewable energy in Montenegro is gaining momentum with the passage of the Renewable Act, which took effect on August 31, 2024. This law aims to expand the use of solar, wind, hydropower and other clean energy sources, lower electricity costs for households and create new jobs in local communities.

EU-Backed Programs

In partnership with Montenegro’s government and Eco Fund and with support from the U.N. Development program, the European Union is funding an Energy Efficiency Incentive Program that focuses on improving renewable energy for not only the lives of day-to-day citizens, but also for the poverty across the country. With the program support, things such as window replacement, thermal insulation, solar panels and energy-efficient heating systems are receiving upgrades to improve not only living standards, but also boost air quality indoors and outdoors, which in turn is helping households cut costs and improve living standards.

More than 2,500 applicants have received approval this year and the number could rise in the next months to come.

Zero Upfront Solar Model

In the process of increasing renewable energy in Montenegro, what sets them apart is not just the number of panels, but the way households have been brought on board. The requirement for large upfront payments for solar systems would have excluded many families and vulnerable groups. Instead, the company EPCG installed photovoltaic systems, which households would repay the cost through monthly instalments alongside their existing electricity bills. Families will end up paying no more than before and, in some cases, less. With the program’s impact, families will be able to avoid energy poverty and stabilize expenses, while the country benefits from reduced emissions.

Montenegro’s Renewables Act

On August 31st, 2024, while bringing the country in line with European Union Energy rules, the government introduced the Renewable Act, aiming to promote the production and use of green energy while implementing the EU’s Energy Efficiency Directive. Under this act, renewable facilities may be able to qualify for either a feed-in-tariff or a market premium, with a transitional period before the latter is fully implemented.

Such products will include those generating power from solar, wind, hydropower of up to 10 megawatts from wastewater treatment plants and biogas. By supporting renewable projects, the law will help make renewable energy in Montenegro accessible to cheaper, locally produced electricity.

Over time, this can reduce dependence on imported fossil fuels, shielding families from global price spikes. New solar, wind and small hydro projects require installation, maintenance and technical expertise, which could create jobs that benefit local workers, especially in rural and undeveloped areas.

Takeaway

Renewable energy programs in Montenegro and the 2024 Renewable Act are helping households cut energy costs, reduce emissions and create jobs, while making green power accessible to families across the country.

– Joshua Pettis

Joshua is based in Houston, TX, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr