Montenegro Adopts the Law on the Use of Energy from Renewable Sources
Date: 23.08.2024.
Long story short:
Montenegro’s Parliament has adopted a new law aimed at promoting the use of renewable energy sources, aligning with EU directives and enhancing the country’s legal framework for renewable energy investments.
Main Content:
On August 23, 2024, the Parliament of Montenegro adopted the Law on the Use of Energy from Renewable Sources, a significant step toward improving the country’s renewable energy sector. This new law fully transposes the European Union Directive 2018/2001/EU, which focuses on promoting the use of energy from renewable sources.
The Law defines renewable energy sources broadly, including wind, solar (both thermal and photovoltaic), geothermal, tidal, wave, hydropower, biomass, landfill gas, biogas, and energy from wastewater treatment plants. It outlines detailed procedures for planning the renewable energy share in Montenegro’s energy mix, as well as administrative processes related to incentive systems for renewable energy generation. It introduces systems for market premiums, feed-in tariffs for small plants and demonstration projects, and measures for financing these incentives.
A key innovation of the Law is the recognition of Energy Communities, which allow groups of natural and legal persons to form communities based on open and voluntary participation to promote the generation and use of renewable energy. This is expected to encourage collaboration and investment in the renewable energy sector.
The law also regulates the use of renewable energy in various sectors, including transport, heating, and cooling. Furthermore, it sets criteria for sustainability and greenhouse gas savings for biofuels, bioliquids, and fuels derived from biomass. The law aims to create better conditions for investing in the construction of renewable energy facilities, as well as highly efficient cogeneration plants.
Overall, this new legislation improves the regulatory framework for renewable energy in Montenegro, which is expected to benefit both buyers-producers and investors by enhancing the electricity market and fostering investments in renewable energy projects.
Impact on Industry:
The adoption of this law is expected to create a more attractive environment for investments in renewable energy generation, especially in electricity production, heating, cooling, and transport sectors. By establishing clear incentives and legal structures for renewable energy projects, the law supports both local and international investors. The inclusion of Energy Communities is also expected to foster innovation and collaboration in the energy sector. The law is poised to have a positive impact on Montenegro’s energy market, offering greater opportunities for electricity producers, buyers, and investors.
Conclusion:
Montenegro’s adoption of the Law on the Use of Energy from Renewable Sources represents a major step toward a more sustainable energy future. By aligning with EU directives and introducing key innovations such as Energy Communities, the law will facilitate greater use of renewable energy, attract investments, and improve energy efficiency across various sectors.
Relevant Links:
https://www.jpm.law/
