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- Montenegro launches its first renewable energy auction
- Auction for 250 MW of solar power generation capacity
- Launch follows successful adoption of RES Law, which was developed with EBRD support
With support from the European Bank for Reconstruction and Development (EBRD), Montenegro’s Ministry of Energy and Mining has launched the country’s first renewable energy auction. The incentive scheme covers 250 megawatts (MW) of solar power generation capacity.
Details of the tender process and related documentation are available on the Ministry’s website. The deadline for the submission of bids is expected to be around the beginning of November 2025.
This auction represents a major step in Montenegro’s transition to a market-based renewable energy sector. It is part of a broader technical assistance programme provided through the EBRD’s Renewable Energy Market Accelerator (REMA), with financial support made available by Austria (through the High-Impact Partnership on Climate Action), Italy (through the Central European Initiative) and the European Union (EU).
Launched in 2022, the technical assistance programme supported the development of a new Renewable Energy Sources (RES) Law in Montenegro, which entered into force in August 2024. This law is aligned with the EU’s new Renewable Energy Directive (RED II) and has been complemented by secondary legislation enabling this first auction to take place and a forthcoming three-year plan for future auctions – both of which are in line with Montenegro’s EU Reform and Growth Agenda.
The EBRD’s assistance has also supported the introduction of competitive bidding and other market-based mechanisms, ensuring alignment with Montenegro’s commitments under the Energy Community Treaty. These reforms are aimed at attracting high-quality private investment, ensuring cost-efficiency and increasing transparency in the energy sector.
Montenegro’s first renewable energy auction represents a milestone, supporting the diversification of the country’s economy and energy mix while enabling renewables to be integrated into the national grid at scale. This will help to create a dynamic and investor-friendly environment for clean energy as Montenegro looks to the future.
Remon Zakaria, the EBRD’s Head of Montenegro, said: “We are delighted to have supported the Ministry of Energy and Mining in the design and implementation of Montenegro’s first renewable energy auction. The country now has a solid framework in place to accelerate the development of solar and wind energy, in line with its climate commitments and long-term sustainability goals. The EBRD is proud to be partnering with the Montenegrin authorities on this important transition. Renewable energy auctions remain a key policy priority for the EBRD, and our support is always tailored to the specific needs and context of each country.”
Admir Šahmanović, the Montenegrin Minister of Mining and Energy, said: “The launch of competitive renewable energy auctions is a strategic decision for Montenegro’s energy future. By creating a transparent, market-driven system, we are unlocking the potential of our abundant solar and wind resources to reduce energy costs, strengthen our energy security and meet our ambitious energy transition goals. This is not only a strategic move for economic development, but a concrete way to deliver clean and affordable electricity to our citizens. With the support of our partners, we are building a modern energy system that benefits our people, protects our environment and positions Montenegro as a leader in the region’s green transition.”
Johann Sattler, the EU Ambassador to Montenegro, added: “This ground-breaking renewable energy auction underscores Montenegro’s dedication to a sustainable future, aligning it with EU green transition goals. The European Union is proud to support Montenegro in enhancing its energy independence and security. Together, we’re fostering regional growth and stability, setting a precedent for impactful reform.”
The EBRD’s Renewable Energy Market Accelerator is currently helping 17 countries to prepare and conduct renewable energy auctions. This has led to contracts being awarded in nine countries so far for more than 8,500 MW of capacity.
The EBRD is a leading institutional investor in Montenegro, having invested €950 million through 99 projects to date.