Montenegro Energy Situation
Capital:
Podgorica
Region:
Coordinates:
42.708678° N, 19.374390° E
Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.
13,810
Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.
616,177 (2023)
Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.
31 (2023)
GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.
7,530,593,375 (2023)
GDP Per Capita (current US$): It is gross domestic product divided by midyear population
12,221.48 (2023)
Access to Electricity (% of population): It is the percentage of population with access to electricity.
100.00 (2022)
Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.
27.57 (2014)
Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.
64.66 (2014)
Introduction
Montenegro is a country in Southeastern Europe, on the Balkan Peninsula. Its 25 municipalities have a total population of 633,158 people in an area of 13,812 km² (5,333 sq mi). It is bordered by Bosnia and Herzegovina to the northwest, Serbia to the northeast, Kosovo to the east, Albania to the southeast, Croatia to the west, and has a coastline along the Adriatic Sea to the southwest. The capital and largest city is Podgorica.[1]
Montenegro has been in the process of joining the European Union since 2012.[2]
Energy Situation
Montenegro has been making efforts to increase the share of renewable energy in its energy mix. The country has set targets and implemented policies to promote sustainable and cleaner energy sources.
Montenegro has a significant share of its electricity generated from hydropower. The country has been investing in the modernization and expansion of existing hydropower plants and the development of new ones. Has also been exploring the potential of wind energy. There have been developments in wind farm projects, with several wind farms in operation or under development.
Solar energy projects have been gaining attention, and there have been initiatives to harness solar power for electricity generation.
Installed electricity capacity (MW) by Technology, Grid connection and Year
| Technology | Grid Connection | Year | Capacity (MW) |
|---|---|---|---|
| Solar photovoltaic | On-grid | 2022 | 22.0 |
| Onshore wind energy | On-grid | 2022 | 118.00 |
| Renewable hydropower | On-grid | 2022 | 696.69 |
| Coal and peat | On-grid | 2022 | 225.00 |
Energy Generation and Consumption
| Description of data [unit] | 2020 | 2021 |
|---|---|---|
| Electricity production [GWh] | 3.225 | 3.655 |
| Gross electricity consumption [GWh] | 3.311 | 3.491 |
| Consumption structure [GWh] / industrial, transport, services and other | 1.569 | 1.641 |
| Consumption structure [GWh] / households (residential customers) | 1.241 | 1.334 |
Net Import & Net Export
| Description of data [unit] | 2020 | 2021 |
|---|---|---|
| Net imports [GWh] | 5.886 | 5.318 |
| Net exports [GWh] | 5.771 | 5.489 |
Energy Losses
| Description of data [unit] | 2020 | 2021 |
|---|---|---|
| Losses in transmission [%] | 1.82% | 1.79% |
| Losses in distribution [%] | 12,9% | 12.39% |
Transmission Network
| Description of data [unit] | 2020 | 2021 |
|---|---|---|
| Horizontal transmission network [km] | 1.411 | 1.423 |
| Horizontal transmission network [km] / substation capacity [MVA] | 3.867 | 4.166 |
No of Consumers
| Description of data [unit] | 2020 | 2021 |
|---|---|---|
| Electricity customers / total | 404.785 | 413.404 |
| Electricity customers / non-households | 40.052 | 40.915 |
| Eligible customers under national legislation | 404.785 | 413.404 |
Internal Market
| Description of data [unit] | 2020 | 2021 |
|---|---|---|
| Internal market / electricity supplied to active eligible customers [MWh] | 2.700.116 | 2.975.178 |
| Horizontal transmission network [km] / substation capacity [MVA] | 96% | 100% |
Renewable Energy Potential
| Unit | Reference Case 2030 | Remap 2030 | |
|---|---|---|---|
| Total installed power generation capacity | MW | 1,299.00 | 1,385.00 |
| Renewable capacity | MW | 1,074.00 | 1,385.00 |
| Hydropower | MW | 781.00 | 823.00 |
| Wind - onshoore | MW | 190.00 | 190.00 |
| Biofuels solid, liqluid, gaseous) | MW | 71.00 | 79.00 |
| Solar PV | MW | 32.00 | 293.00 |
| Non-renewable capacity | MW | 225.00 | 0.00 |
| Coal | MW | 225.00 | 0.00 |
| Technologies | Technical Potential MW |
|---|---|
| Solar PV | 722.5 |
| Wind | 2,936.0 |
| Hydro | 2,040.0 |
| ≤ 10 MW | 140.0 |
| > 10 MW | 1,900.0 |
| Pumping | |
| Biomass | 198.0 |
| Biogas | 87.0 |
| Solid Biomass | 97.0 |
| Biowaste | 14.0 |
| Geothermal el. | 1.4 |
| Total | 5,897.9 |
As we can see, if Montenegro would use its entire technical potential,ti would generating power by 455%.
Fossil Fuels
Greenhouse Gas Emissions
Greenhouse gas emissions in Montenegro are around 3.45 of MtCO2.
| Unit | Reference Case 2030 | Remap 2030 | |
|---|---|---|---|
| Energy-related CO2 emissions | [Mt CO2 /yr] | 3.1 | 1.4 |
Key Problems of the Energy Sector
While Montenegro has significant renewable energy potential, there are challenges associated with increasing the share of renewable energy in the country's energy mix. Some of the challenges include:
| Limited Renewable Resources | Montenegro may have faced challenges in harnessing renewable energy due to a limited availability of natural resources like wind, solar, or biomass. |
| Investment Constraints | Insufficient financial resources and limited access to investment capital might have hindered the development of renewable energy projects. |
| Grid Integration | The integration of renewable energy sources into the existing grid infrastructure can be challenging, requiring significant upgrades and investments. |
| Regulatory Framework | Inconsistent or inadequate regulatory frameworks might impede the growth of the renewable energy sector by creating uncertainties for investors. |
| Land Use and Environmental Concerns | Balancing the need for renewable energy development with environmental protection and land use concerns can pose challenges, particularly in ecologically sensitive areas. |
| Public Awareness and Acceptance | Lack of awareness and public support for renewable energy initiatives can make it difficult to implement and sustain projects. |
| Technical Challenges | The technical challenges associated with the implementation of renewable energy technologies, such as intermittency issues with wind and solar power, may need to be addressed. |
| Energy Storage | The absence of effective energy storage solutions can limit the ability to store excess energy generated during peak times for use during periods of low renewable generation. |
| Dependency on Fossil Fuels | Montenegro might have faced challenges in reducing its dependence on traditional fossil fuels, which could hinder progress towards a more sustainable energy mix. |
| Political Will and Stability | Political support and stability are crucial for long-term planning and execution of renewable energy projects. Changes in government policies can impact the sector. |
| Infrastructure Development | Insufficient infrastructure for renewable energy production, such as transmission lines and substations, may have hampered the growth of the sector. |
| Skill Shortages | A lack of skilled personnel in the renewable energy sector can be a bottleneck for the successful planning and implementation of projects. |
| Access to Technology | Limited access to the latest and most efficient renewable energy technologies might have slowed down progress in the sector. |
| Energy Market Dynamics | The dynamics of Montenegro's energy market, including pricing structures and competition, could influence the attractiveness of renewable energy investments. |
| International Collaboration | Limited collaboration with international organizations and neighboring countries in promoting and implementing renewable energy initiatives may have hindered progress. |
Policy Framework, Laws and Regulations
In Montenegro, the production of electricity from renewable energy sources is mainly promoted through a feed-in tariff.
The access to the grid is regulated by the general legislation on legislation and renewable energy sources are given priority.
Support Schemes
In Montenegro, electricity from renewable sources is supported through a feed-in tariff. The operators of plants that generate electricity from renewable energy sources can obtain the status of a „Privileged Producer/Generator“ („povlašćeni proizvođač“) and thereupon acquire the right to a price support for the generated electricity under the legal requirements.. Every year in January, a new incentive fee is adopted, which is applied to the end-costumers, who bore the costs from RES.
| Feed-in tariff | The owners of renewable energy power plants that have acquired the status of „Privileged Producer“ can sign a contract with the Montenegrin Energy Market Operator (COTEE) in order to receive a fixed price per kWh for the supplied electricity. |
Institutional Set up and Key Actors in the Energy Sector
In Montenegro, the energy sector involves various key actors responsible for the generation, transmission, distribution, and regulation of energy. Here are the key actors in the energy market in Montenegro:
| 1. Ministry of Economy: | The Ministry of Economy is responsible for formulating and implementing energy policies in Montenegro. It plays a key role in shaping the regulatory framework, energy development plans, and strategies for the energy sector. |
| 2. Energy Regulatory Agency (Regulatorna agencija za energetiku - RAE): | The Energy Regulatory Agency regulates and oversees the energy sector in Montenegro. RAE is responsible for ensuring fair competition, consumer protection, and adherence to legal and regulatory standards. |
| 3. Electric Power Company of Montenegro (Elektroprivreda Crne Gore - EPCG): | EPCG is the state-owned power utility in Montenegro. It is involved in electricity generation, transmission, and distribution. EPCG plays a significant role in the country's energy landscape. |
| 4. Transmission System Operator (Crnogorski elektroprenosni sistem - CGES): | CGES manages the high-voltage electricity transmission system in Montenegro. It is responsible for the operation, maintenance, and development of the transmission infrastructure. |
| 5. Distribution System Operator (Crnogorski elektrodistributivni sistem - CEDIS): | CEDIS is responsible for managing the low and medium-voltage electricity distribution network in Montenegro. It distributes electricity to end-users, maintains the distribution infrastructure, and ensures the continuity of electricity supply. |
| 6. Independent Power Producers (IPPs): | Independent Power Producers are private entities involved in electricity generation. They contribute to the diversification of the generation mix and may operate renewable or conventional power plants. |
| 7. Investors and Financing Institutions: | Investors, both domestic and foreign, play a crucial role in funding and developing energy projects in Montenegro. Financing institutions, such as banks and international financial organizations, provide funding and support for energy infrastructure projects. |
| 8. Consumers and Industrial Users: | End-users, including residential, commercial, and industrial consumers, are essential actors in the energy market. Their energy consumption patterns and demand influence market dynamics. |
| 9. Government Agencies and Local Authorities: | Various government agencies and local authorities are involved in permitting, land-use planning, and environmental assessments for energy projects. They also play a role in setting policies that impact the energy sector. |
| 10. International Organizations and Donors: | International organizations and donor agencies may provide support, technical assistance, and funding for energy sector development projects in Montenegro, especially those focused on sustainability, renewable energy, and regulatory reforms. |
| 11. Environmental Protection Agency (Agencija za zaštitu prirode i životne sredine): | The Environmental Protection Agency is responsible for environmental protection and ensuring that energy projects adhere to environmental regulations and standards. |
| 12. Market Operator: | The Market Operator facilitates the electricity market by managing market transactions, ensuring fair competition, and promoting market efficiency. It operates in accordance with the regulatory framework and market rules. |
Further Information
References
- IRENA, Renewables Readiness Assessment: Montenegro, 2021
- IRENA, Renewable Energy Prospects for Central and South-Eastern Europe Energy Connectivity (CESEC), 2020
- IRENA, Cost-competitive renewable power generation: Potential across South East Europe, 2017
- LEGAL SOURCES ON RENEWABLE ENERGY res-legal.eu
- Energy Community, Montenegro
