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BiH, Montenegro ask EU to delay CBAM

Bosnia and Herzegovina and Montenegro requested at the meeting of the Energy Community Ministerial Council for the introduction of the CBAM cross-border CO2 tax, scheduled for January 1, 2026, to be postponed.

The rollout of payments within the European Union’s Carbon Border Adjustment Mechanism (CBAM) is going to affect companies in the region – in Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Kosovo*, and Serbia.

The countries can be exempted from the CBAM on electricity. However, they are too slow in fulfilling the requirements. The results so far show there is no chance any of them can get an exception before January 1, 2026.

Staša Košarac (photo: Energy Community)

After the latest meeting of the Ministerial Council, the Minister of Foreign Trade and Economic Relations of BiH Staša Košarac said his country has drafted a harmonized law on electricity for the transposition of the EU’s Third Energy Package. In his words, it was success enabled by the cooperation of the energy ministries of BiH’s both entities: the Republic of Srpska and Federation of BiH.

Košarac: We want to help businesses continue exporting without CO2 tax

The country also demonstrated good cooperation between the entity ministries by asking the Energy Community Secretariat to seek a postponement of the implementation of CBAM, Košarac noted, citing a specificity of activities carried out not only by BiH but also the other contracting parties.

He told Balkan Green Energy News the parties backed his proposal. BiH is asking to delay CBAM to allow domestic exporters to continue exporting to the EU without paying a carbon tax, Košarac added.

Mujović: Postponement until Montenegro completes electricity market coupling with the EU

Saša Mujović (photo: Energy Community)

Montenegrin Minister of Energy Saša Mujović confirmed for Balkan Green Energy News that he also requested a CBAM delay for a certain period.

The country is seeking an exemption from January 1, 2026, until it completes electricity market coupling with the EU, which is expected in the fourth quarter of that year, he explained.

Mujović added he supported an initiative for a longer postponement as well.

According to Vijesti, Mujović said his requests would be forwarded to the European Commission. He stressed that the ministry made and that it would continue to make efforts toward the implementation of the energy package – consisting of laws on renewables, energy, and cross-border exchange of electricity and gas – and coupling the domestic electricity market with the EU.

A postponement would save Montenegro EUR 350 million per year

With the current pace, Montenegro could finish coupling by the fourth quarter of 2026, according to Mujović. Starting the payments within CBAM on January 1, 2026, could be a huge financial burden for coal power plant Pljevlja, he said.

To achieve an exemption from CBAM, Montenegro and all other contracting parties must conduct market coupling with EU member states, so Mujović is asking for a postponement until the final quarter of 2026, when the market coupling could be completed.

He noted that a positive response from the EU would save the country EUR 350 million per year and enable Pljevlja to operate profitably.

Lorkowski: The European Commission will probably respond to the request

Artur Lorkovski (photo: Energy Community)

The secretariat’s director Artur Lorkowski confirmed that BiH minister Košarac raised the issue of a CBAM postponement. “But, CBAM isn’t our legislation. The Energy Community isn’t a proper address for that request. It was well noted by the representative of the European Commission,” he stressed.

Lorkowski assumes that follow-ups or an answer to the request are expected.

“It is the proposition of the BiH, as minister Košarac said”, he added.

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Montenegro labels 15 energy projects as infrastructure priorities

The most valuable priority infrastructure projects in the energy sector of Montenegro are the Komarnica and Kruševo hydropower plants, the Trans-Balkan Electricity Corridor and the Ionian-Adriatic pipeline.

The Government of Montenegro has adopted a list of priority infrastructure projects for the energy sector to fulfill the final criteria of chapter 21 – Trans-European Network, of the country’s negotiations on the accession to the European Union.

The list consists of 15 projects with a total estimated value of around EUR 1.38 billion, according to the announcement.

The EU will use list to consider financial support from the Western Balkans Investment Framework

The list was updated in line with the Western Balkans Investment Framework (WBIF) methodology. In line with priorities defined at the state level, the list is for the European Commission to select projects for financial support from the scheme.

WBIF is the main mechanism for the EU’s financial support in the region in the period from 2024 to 2027, the government noted.

The following projects are on the list:

  • HPP Komarnica – EUR 315 million
  • Ionian-Adriatic Pipeline for natural gas (IAP) – EUR 210 million
  • interconnection Italy – Montenegro – Serbia – Bosnia and Herzegovina (Trans-Balkan Electricity Corridor) – EUR 163 million
  • HPP Kruševo – EUR 160 million
  • energy efficiency in public and residential buildings – EUR 104 million
  • improving the quality of power supply in tourist regions – EUR 78 million
  • creation of conditions for the integration of renewables and the construction of a new power interconnection – EUR 73.6 million
  • solar power project Solari 10,000+ – EUR 66 million
  • Slano floating solar power plant – EUR 60 million
  • Krupac photovoltaic plant – EUR 40 million
  • smart grid and smart metering system for electricity distribution system operator CEDIS – EUR 35 million
  • A8 unit at HPP Perućica – EUR 24 million
  • smart grid program of electricity transmission system operator CGES – EUR 21 million
  • decarbonization – EUR 21 million
  • reconstruction of oil storage tanks – EUR 10 million.

Montenegro also has a list of priority infrastructure projects, including energy. It was introduced in 2018 and updated in the meantime.

Compared to the list from 2021, the Gvozd wind farm and the ecological reconstruction of the Pljevlja thermal power plant were erased, while the following projects were added: HPP Kruševo, Krupac solar power plant, decarbonization and the reconstruction of oil storage tanks.

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Montenegro’s EPCG to launch public call for 300 MWh of batteries

Montenegro’s state-owned power utility, Elektroprivreda Crne Gore (EPCG), intends to invite bids by the end of the year for the installation of battery energy storage systems.

President of EPCG’s Board of Directors Milutin Đukanović has said that the company’s business philosophy is based on three principles – production at the point of consumption, use of hydropower for the integration of solar energy, and energy storage.

Speaking at a conference on regional power companies and their plans for the future, organized by Energija Balkana, Đukanović highlighted batteries as one of the key enablers of the green transition.

“By the end of year, EPCG will announce a public call for the procurement of battery energy storage systems (BESS) with a capacity of 300 MWh,” he said, according to EPCG.

EPCG plans to finish two more large-scale projects by the end of 2026

EPCG also plans to complete two large-scale projects by the end of 2026 – the construction of the Gvozd wind power plant and the installation of the A8 unit in the Perućica hydropower plant, according to him. About a month ago, the company held a groundbreaking ceremony for Gvozd, and in September it secured a loan for a new unit at HPP Perućica.

Energy Minister Saša Mujović recently said that a feasibility study was underway for electricity storage projects. The planned locations are at HPP Perućica, the former Željezara Nikšić steel plant, and the Pljevlja coal mine. These locations have available capacity for grid connections.

In September, EPCG said that it had started preparations to install batteries.

EPCG intends to install lithium-ion batteries

The Board of Directors has adopted a project task proposal and announced the launch of a public call for a feasibility study and project design.

The company plans to secure the flexibility of the power system by developing storage systems based on lithium-ion batteries, EPCG said.

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Applications open for ninth Energy Community Summer School in Kotor

The Energy Community Secretariat is organizing its ninth Energy Community Summer School for young professionals in the energy sector. It will be held from July 19 to 26 in Kotor, at the Faculty of Maritime Studies of the University of Montenegro.

The Energy Community Summer School focuses on energy sectors in transition, particularly in Southeast and Eastern Europe. It offers young people a unique opportunity to explore the technical, economic, political, legal, and other aspects of energy transition.

The goal is to enable participants to understand the energy sector and promote skill development in all energy-related topics. The program includes a combination of courses, guest lectures, social, and cultural activities. Alongside theoretical elements, it provides practical training through case studies and mock cases.

The application deadline is March 31

The application process involves filling out a form that includes a CV and a short paper of up to five pages. In it, each candidate should present and briefly analyze current issues in energy policy related to economic implications, technical aspects of energy production, political implications and energy diplomacy, legal aspects, or sustainability of energy systems.

Postgraduate students (master’s and PhD), researchers from various fields, and professionals from government institutions, energy companies, and NGOs under 35 years of age are eligible to apply. Successful candidates will be selected by the Energy Community Secretariat in consultation with a network of academic and research institutions from participating countries. A total of 40 participants will be chosen.

The Energy Community Summer School is accredited, and participating students  can earn three ECTS credits.

Adrian Jasimi, the organizer of the Summer School, said its success lies in its ability to unite future leaders in the energy sector, encourage diverse perspectives, and inspire lasting connections. “It’s not just about knowledge; it’s about shaping the future of energy together,” he said.

The Energy Community Secretariat covers all costs

The Energy Community Secretariat covers all program-related expenses, including lectures, accommodation, excursions, and most meals. In addition to European Union citizens, participation is free for citizens of Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Georgia, Kosovo*, Moldova, Montenegro, North Macedonia, Norway, Serbia, Ukraine, the United Kingdom, and Turkey.

Energy Community contracting parties take turns hosting the Summer School each year. Last year it was held in Chișinău, the capital of Moldova.

* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
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Montenegro’s DSO CEDIS secures funds for grid digitalization

Montenegrin distribution system operator (DSO) CEDIS has secured funds for the installation of an advanced grid management system and procurement of smart meters.

The EUR 40 million package consists of a EUR 35 million loan provided by the European Bank for Reconstruction and Development (EBRD) and a EUR 5 million grant under the European Union’s Western Balkans Investment Framework (WBIF).

The funds are intended for a new supervisory control and data acquisition (SCADA) system and an advanced distribution management system (ADMS), as well as the procurement of new smart meters.

Smart meters help users and utility companies monitor and manage electricity usage more efficiently

The project is expected to reduce technical losses by 10%, decrease grid outages to approximately one sixth of the current level, allow new renewable energy sources to be integrated into the grid and enhance cyber security, according to CEDIS and EBRD.

The SCADA system will be used to monitor and control medium-voltage grid networks in real time. ADMS is an advanced platform that optimizes the management and operation of the electricity distribution system.

Smart meters help users and utility companies monitor and manage electricity usage more efficiently, reducing losses and improving reliability, the update reads.

The loan agreement was signed by the EBRD’s Head of Montenegro Remon Zakaria, CEDIS CEO Vladimir Ivanović, and Ivan Bulatović, CEO of EPCG.

Ivanović: The integration of smart meters will empower consumers to better understand and optimize their energy usage

According to Zakaria, the project represents a transformative step towards the digitalisation of the electricity distribution system in Montenegro.

Citizens will experience a more reliable electricity supply, and CEDIS will achieve substantial reductions in technical losses and gain the advanced capabilities required to swiftly detect and address technical faults, he added.

Vladimir Ivanović said SCADA and ADMS would revolutionize the way the company operates the distribution network. The integration of smart meters will empower consumers to better understand and optimize their energy usage, contributing to greater energy efficiency across the network, he stressed.

Last year Ivanović said CEDIS has reduced grid losses from 12.93% to 10.84% and that it planned to lower them below 10% by the end of December.

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Alcazar Energy, EPCG open talks on PPA for Montenegro’s biggest wind farm

Renewable energy investor Alcazar Energy Partners has signed a memorandum of understanding with Montenegrin state power utility Elektroprivreda Crne Gore (EPCG), initiating negotiations on a power purchase agreement (PPA) for electricity that will be produced by Alcazar’s future 118.8 MW Bijela wind farm.

Alcazar Energy acquired the rights to the Bijela wind farm project in September 2023. A year later, it signed a contract for the construction of infrastructure for connecting the facility to the grid.

A key component of the government’s 2040 National Development Strategy, Bijela will support Montenegro’s commitment to reducing greenhouse gas emissions, Alcazar said in a press release. The largest wind farm in Montenegro will provide clean energy to more than 16,000 households while preventing the release of up to 230,000 tons of CO2 annually, according to the statement.

The wind farm will provide green energy to more than 16,000 homes

The development of Bijela, backed by the European Bank of Reconstruction and Development (EBRD), will support Alcazar’s strategic expansion in the Western Balkans and it target of developing 1GW of renewable energy in the region, according to the statement.

“This partnership is continued evidence of our commitment to developing the largest renewable energy platform in the Western Balkans,” said Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy Partners.

The Bijela project supports Alcazar’s ambition to develop 1 GW of renewables in the Western Balkans

Ivan Bulatović, the executive director of EPCG, described the memorandum of understanding as “a crucial step in strengthening Montenegro’s energy stability.”

“Cooperation with renowned international partners, such as Alcazar Energy Partners, not only enables the modernization of the sector but also accelerates the transition to cleaner and more sustainable energy sources,” he added.

Alcazar Energy Partners is an independent sustainable investment manager with a strong track record in developing utility-scale renewable energy projects in emerging and growth markets since 2014, reads the press release.