Montenegro has relatively abundant water resources given its relatively small size. Although two large hydropower plants produce 76 percent of electricity in the country, the total energy they produce (1,800 GWh) is only about 18 percent of the total hydropower potential. In case of SHPPs the utilisation of the potential is even lower. The Ministry of Economy of Montenegro (Ministry) is aware of the high unutilized potential and promotes utilization of hydropower potential through issuing concessions for SHPPs. During 2011 and 2012 the EBRD provided technical assistance (TCS 31577) to Montenegro to develop a Small Hydro Power Registry for Northern Part of Montenegro (Project) concentrating on small water streams with a potential installed output of up to 1 MW. This initial assignment led to 8 new SHPP being planned for construction, with two operational by the end of 2014. The Bank has now received a new request to support an enhancement of the Registry for the SHPPs of installed output between 1 and 10 MW in the territory of Central and Northern Montenegro. The planned TC will provide the Ministry of Economy, local municipalities and potential investment project sponsors with a fundamental decision making document that explains the possible methods of addressing the future use of hydropower potential on the territory of Montenegro and individual municipalities.
The Project is consistent with the Bank’s Sustainable Resource Initiative (“SRI”),, aimed at promoting the sustainable use of energy, materials and water resources. The Project is also consistent with the EBRD Strategy For Montenegro as approved by the Board of Directors at its meeting on 1 October 2013, which listed as one of the priorities to “invest in projects that improve energy security” where the role of SHPPs is very important.
Investors in Montenegro have sufficient information to determine whether to pursue investments in small hydropower plants in Montenegro.
TC Recipient Information
Municipalities in Montenegro.
Funded by the Czech Republic
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