Montenegro Country Profile (.pdf file - 391 kB) 1. Overview   2. Policy and Incentives   3. Wind 4. Biomass 5. Solar 6. Geothermal 7. Hydroelectric   8. Links 9. References 10. Country Contacts

Disclaimer:  This information has been prepared for the European Bank for Reconstruction and Development (EBRD) by Black & Veatch (B&V) and is based on information not within the control of EBRD or B&V. References for information contained in this report are listed at the end of this document; readers should consult these references for original source material. Neither EBRD nor B&V has made an analysis, verified, or rendered an independent judgment of the validity of the information provided by others. EBRD and B&V do not guarantee the accuracy thereof. Use of this information contained shall constitute a waiver and release of B&V and the European Bank for Reconstruction and Development from and against all claims and liability, including but not limited to liability for special, incidental, indirect or consequential damages, in connection with such use.

As part of the Western Balkan region, Montenegro’s energy sector suffered during the violent conflicts of the 1990’s.  Much of the sector requires significant domestic and foreign investment to refurbish the existing infrastructure (IEA, 2008). 

Montenegro mainly uses hydropower and their indigenous lignite as domestic sources of energy.  The country shows some small potential for offshore oil and gas, but the potential has not yet been developed.  Montenegro also has some major energy inefficiencies.  In fact, their energy efficiency savings could amount to about 20 percent of current consumption.  Savings could take place in all major sectors of energy: production, transmission and distribution (IEA, 2009).

The energy sector in Montenegro is comprised of the following holding companies: Electric Power Company of Montenegro (Nikšić), Coal Mine Holding Company (Pljevlja), Brown Coal Mine Holding Company (Ivangrad - Berane), and Petrol Holding Company (Kotor).  The driving force in the energy sector is the Energy Policy of Montenegro and the Energy Development Strategy of Montenegro by 2025 (Ministry for Economic Development, 2009).

The table below displays summary information about Montenegro.

Montenegro Country Summary Table

 

The electricity grid of Montenegro is displayed below.

 

Montenegro Electricity Grid

 

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As an active participant in the EU integration process, Montenegro supports the EU objectives set in January 2007.  They will strive to reduce greenhouse gases emissions by 20 percent, increase energy efficiency and reduce energy consumption by 20 percent, raise their share of renewable energy sources to 20 percent, and raise their share of biofuels at least 10 percent all by the year 2020 (Ministry of Economic Development, 2009).

The National Energy Development Strategy until 2025, which was adopted in December 2007, is the key document for identifying investment opportunities in the energy sector.  This strategy includes provisions for explorations of potential small hydro power sites and a design study for wind power plant development.  The strategy also works to eliminate barriers to enable utilization of renewable energy resources. 

Montenegro’s Energy Law is another important part of the country’s energy policy.  The law established the Government as the responsible party for promoting a competitive energy market.  It regulates the generation, transmission, distribution and supply of electricity in the market or as a Public Service.  It also regulates petroleum products and gas as well as the production and market for coal use for electricity generation.  This law does not apply to coal exploration or petroleum refining. 

The objectives of the Energy Law are to ensure safe, secure, reliable, quality energy at fair prices.  The law takes into account environmental protection, efficient use of energy, promotion of market competition, promotion of private sector participation, and integration of the energy sector activities in Montenegro with the rest of Europe (Vujosevic, 2007).

The Legal Unbundling of the Electric Power Company of Montenegro Law is underway, so is the development of an electricity market law.  Also, the Law on Energy Efficiency is in the final stages of development (Ministry of Economic Development, 2009).

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Wind data is insufficient for any substantial use of wind energy at this time; however with the information available, general locations with good resource can be determined.  Locations are in the vicinity of Niksic, in the southwestern region of the country, and in the Costal region all have good wind energy potential (Ministry of Economy, 2006).

Montenegro’s only wind installation, the Ilino Brdo (260 kW), was recently retired, so Montenegro currently has no operating or planned wind installations (UDI, 2009).

Montenegro Wind Resource Map

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Montenegro is believed to have great biomass potential.  Studies have estimated wood biomass potential as 2.6 m³/ha per year.  Over 30,000 cubic meters of wood scraps and 33,000 cubic meters of saw mill scraps could be used for energy production annually.  Preliminary studies are being completed to assess the feasibility of a 2, 5 or 10 MW biomass power plant (Ministry for Economic Development, 2007).

 

Montenegro is also looking into the possibility of utilizing industrial waste for energy.  An estimated 200,000 - 250,000 tons are formed in Montenegro each year.  Preliminary feasibility studies are underway to look at heat and electric producing facilities that burn solid waste (Ministry for Economic Development, 2007).

 

Montenegro Biomass Resource Data

 

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As in the case of other countries in the area, solar levels in Montenegro are among the highest in Europe.  The most favorable areas record a large number of hours of sunlight, with the yearly ratio of actual irradiation to the total possible irradiation reaching approximately 50 percent.  Of course, the monthly distribution is particularly important in determining utilization for heating; and whether back-up systems will be needed during periods of extended cloudiness.

The total potential for solar active technologies has been estimated to be approximately 50-60 percent of heating demand in the cloudier central regions.  More studies need to be completed to determine Montenegro’s solar potential.

Montenegro Solar Direct Normal Insolation (Source: NASA)

 

Montenegro Solar Global Horizontal Irradiance (Source: NASA)

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As shown in the figure below, Montenegro has medium temperature geothermal resource throughout a majority of the country.  Thus far, this potential has neither been researched nor developed.

Montenegro Geothermal Heat Flow

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Montenegro currently has approximately 680 MW of hydroelectric capacity.  A majority of its capacity, 360 MW, comes from the Piva power plant.  Piva was completed in 1976 and is one of the newer hydroelectric plants in Montenegro.  Many of the power plants were installed in the 1950’s and 1960’s (UDI, 2009). 

Montenegro has about 1,490 MW of planned hydroelectric capacity.  Much of the capacity is planned to be operating by 2013 (UDI, 2009).  

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9.  References

Applied scientific reference book on climate of the USSR. Hydrometheoizdat, L., Issue 5, 1990.

Celmina, A., “Promotion of Biogas Production and Development in Latvia,” Ministry of the Environment for the Republic of Latvia, 2005.

 

Eihmanis, E., “Incorporation of Geothermal Heat Sources in Latvian Heat Supply Systems,” Proceedings World Geothermal Congress, 2000.  Japan, May 28 – June 10.

 

Energy Information Agency (EIA), “Country Energy Balance: Latvia,” 2005.  Available online: www.eia.doe.org.

 

EU PHARE, “Latvian Wind Energy Guide: Development of Wind Energy in the Baltic Sea Region: Latvian Perspective,” 2003.

 

European Renewable Energy Council and Ekodoma, Renewable Energy Policy review Latvia, 2004.

International Energy Agency (IEA), “Share of Primary Energy Supply in 2006,” 2006.  Available online: www.iea.org.

 

Kashkarova, G., “Role of RES in Energy Balance of Latvia,” Energy Resources Laboratory Institute of Physical Energetics, Riga, Latvia, April 2005

Republic of Latvia, “Energy Efficiency and Sustainable Development.” Strategic Issues of Energy System Reforms in Central and Eastern Europe. Round Table, 4-6 December 1995, Paris.

Shipkovs, P. and Kashkarovs, D., “Development of wind energy utilization in Latvia,” Institute of Physical Energetics, Riga Latvia, M. Shipkovs, Energi-R, Riga Latvia, R. Arajs J/S/C Latvenergo Projekts, Riga Latvia

The Third National Communication of the Republic of Latvia Under the UN Framework Convention on Climate Change, 2001.

U.S. State Department, “Background Note: Latvia,” Bureau of European and Eurasian Affairs, May 2009.  Available online: www.state.gov.

 

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10.  Country Contacts

Contacts made in the preparation of this assessment are gratefully thanked for their contribution to this report.  Contacts include: