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A model for Montenegro’s first auction for market premiums for solar power was outlined at an event in the capital Podgorica. The new legal framework for the green energy transition includes guarantees of origin, citizen energy communities and streamlined permitting. Stakeholders will be able to participate with their comments and suggestions in the renewables auction design.

The Ministry of Energy and Mining of Montenegro organized a conference today to present the key design elements of the first market premium auction for renewables. The competitive bidding process for wind and solar power is part of the reform agenda within the European Union’s Growth Plan for the Western Balkans.

The country’s new legal framework includes guarantees of origin, citizen energy communities and simplified permitting aimed at facilitating investment. They were defined with the new laws on energy and renewables.

The ministry said the first auction would be for photovoltaics. Solar power is the segment with the greatest potential and the lowest share in domestic electricity production, it explained.

EBRD’s Zakaria: First auction should match market needs

The Head of Montenegro in the European Bank for Reconstruction and Development (EBRD) Remon Zakaria urged stakeholders to send their comments and suggestions. The design of the first auction should match the needs of the market as much as possible, he argued.

EBRD participated in drafting the model. The ministry also thanked the Ministry of Finance of Austria, Central European Initiative (CEI) and other partners for their assistance.

At the event in Podgorica, a team of experts presented the technical matters concerning the upcoming auction.

Montenegro to boost renewables’ share in electricity output to 70% by 2030

This is not just the beginning of a technical process – it is a strategic leap, according to Minister of Energy and Mining Admir Šahmanović. He pointed out that Montenegro is transitioning from state incentives to a market-based support model, saying it aligns with the best European practices.

“We know our ambitions and goals for 2030 – a 50% share of renewable energy sources in final consumption and 70% of electricity to be produced from renewable sources. They are indeed demanding targets, but reachable – especially with support from international partners and the private sector,” Šahmanović added.

Montenegro has demanding, but achievable green energy targets, Minister Admir Šahmanović said

Montenegro doesn’t see itself isolated in its energy future but as an integral part of the European market, the minister asserted. With the forthcoming auction, the country is sending a clear message that it is ready for the next steps in the green transition, in his view.

The government is committed to decarbonization, digitalization and preparations for the European Union’s instruments like the emissions trading system (ETS) and Carbon Border Adjustment Mechanism (CBAM), Šahmanović underscored.

“We don’t see this process as a political goal – but as an economic opportunity and social imperative,” the minister said.