1. ENERGY SECTOR IN MONTENEGRO
Radosav Babic
Director General
Ministry of Economy of Montenegro
Ministry of Economy
of Montenegro

2. Legal and Strategic framework
Energy Law
Law on Concessions
Law on Ratification of the Treaty establishing the Energy Community between the European Community and the Republic of Montenegro
Law on Cross-Border Exchange of Electricity and Natural Gas
Law on Efficient Use of Energy Law on Exploration and Production of Hydrocarbons
Law on Ratification of the Energy Charter Treaty
Law on Exploration and Production of Hydrocarbons
Energy Strategy by 2030 (adopted in 2011) identifies priorities similar to those of the EU:
Security of the energy supply
Development of the competitive energy market
Establishing competition in market activities
Sustainable energy development
The new Energy Development Strategy with Action Plan Until 2030 has been adopted in June 2014
National Action Plan for the Use of Energy from Renewable Sources by 2020 has been adopted
Member of the Energy Community Treaty
Member of International Renewable Energy Agency

3. ENERGY POTENTIAL OF MONTENEGRO
The fastest growing sector in the economy of Montenegro
Production of 1GWh of electricity from domestic sources contributes to a GDP growth of € 33,000
The total installed capacity of all capacities is cca 900MW, of which 68% belongs to hydro, 24% to thermal capacity of electricity and 8% to wind power
The total projected annual net power is about 3,000 GWh
It is possible to invest in the following sectors: hydropower; thermal energy; wind energy; solar energy; energy created from biomass.

4. status of privileged producer
Energy Law enables the acquisition of the status of privileged producer of energy from renewable energy sources and for the energy produced from this kind of sources the incentive prices are defined
When an investor acquires the status of privileged producer, according to the procedure he is signing contract with Montenegrin electricity market operator
Status of privileged producer is determined for a period of 12 years

5. status of privileged producer
incentive prices for energy produced from renewable energy sources - c€/kWh
Windfarms
9.6
Biomass power plants from forestry and agriculture
13.71
Biomass power plants from the wood industry
12.31
Solar power plants on roof constructions
12.00
Power plants on solid landfills
9.00
Power plants on waste gas
8.00
Power plants on biogas
15.00
incentive prices for the electricity generated in small hydropower plants classified into groups shall be determined depending on the net power output of power plant in the manner indicated in the table below
Net power output of power plant [MW]
Group
Incentive prices [c€/kWh]
net power output of power plant Ppe < 1MW                  1
10.44
net power output of power plant 1 ≤ Ppe < 3 MW           2
*Ppe
net power output of power plant 3 ≤ Ppe< 5 MW            3
*Ppe
net power output of power plant 5 ≤ Ppe< 8 MW       4
*Ppe
net power output of power plant 8 ≤ Ppe ≤ 10 MW   5
6.8
Net power output of power plant shall be calculated by using the following formula: Ppe= Pt* Ƞt*Ƞg*Ƞtr
        Pt -  stands for the sum of nominal powers of all turbines in the plant [MW];
        Ƞt -  stands for efficiency of the turbine in the amount of 0.90;
        Ƞg -  stands for efficiency of generators in the amount of 0.96;
Ƞtr  - efficiency of transformers in the amount of 0.99.

6. Projects in energy sector
Connecting Montenegro and Italy with an undersea cable - construction of a 1,000MW direct-current submarine cable with associated converter plants. The investment in cooperation with the Montenegrin electric system is realized by the Italian company TERNA
capacity: 2x500MW HVDC cables; length: 415km (390km undersea)
start of operation – 2018
Construction of the II Block of TPP Pljevlja - power of 254MW with electrical efficiency of 39.5% at the price of million €, while the annual electricity generation would be 1.600GWh - investor Škoda Praha, Czech Republic
the II Block of TPP Pljevlja will be constructed in line with all EU standards in terms of environmental protection and District heating system will be developed for town of Pljevlja.

7. Projects in energy sector
Renewable energy sources - small hydropower plants - the 34 contracts envisage construction of 53 sHPP, total installed capacity of around 95 MW and planned annual production of around 311 GWh; the indicative value of investments for all planned sHPPs is € 136 million
Renewable energy sources - wind farms - the construction of wind farms is planned at two locations:
at Krnovo site (total installed power of 72 MW)
at the Mozura locality (total installed capacity 46 MW)
HPP Moraca - includes the construction of four facilities: HPP Andrejevo, HPP Raslovici, HPP Milunovići and HPP Zlatica, total installed power of 238 MW and estimated average annual production of 721 GWh; construction costs € 540 million
HPP Komarnica - the construction of HPP Komarnica is planned for the total installed capacity of 168MW and annual production of 232GWh, with a construction period of 6 years and an estimated cost of 183 million €

8. Projects in energy sector
Maoce - the project Maoce aims to valorize the most important and largest natural mineral wealth of Montenegro so far discovered. Two variants of TE Mace are planned - namely the construction of one 350 MW block or two blocks with a total power of 500 MW (2x250 MW)
Gasification and TAP-IAP - planned construction of gas pipeline from Albania to Croatia, across the territory of Montenegro and Bosnia and Herzegovina. The total length is 530 km and will enable the gasification of Montenegro. Shah Denis Consortium from Azerbaijan has selected TAP gas pipeline as a route of transportation of gas through Europe
Oil and gas - the Law envisages the possibility of getting two types of concession contract: Exploration Concession Contract and Production Concession Contract
contracts for Hydrocarbons Production Concession for offshore Montenegro were signed in 2016 with companies ’Eni’ and ’Novatek’ and in 2017 with ’Energean Oil & Gas’

9. THANK YOU FOR THE ATTENTION Ministry of Economy of Montenegro
Radosav Babic
Director General
Ministry of Economy of Montenegro
Ministry of Economy
of Montenegro