EBRD and EU Support Montenegro in Implementing Critical Energy Sector Reforms
Date: 23.08.2024.
Long story short:
The EU and EBRD have signed a €2.5 million agreement to assist Montenegro in enhancing energy security, improving the investment climate, and strengthening corporate governance in state-owned enterprises, as part of broader efforts for Montenegro’s green transition and EU integration.
Main Content:
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have signed a Reform Facility agreement worth €2.5 million to support Montenegro’s critical energy sector reforms. The initiative aims to strengthen the regulatory framework for renewable energy, integrate Montenegro’s power market with the EU and regional markets, and improve the corporate governance of state-owned enterprises (SoEs).
The EBRD’s support is crucial for Montenegro’s green transition and EU integration, aligning the country’s energy market with EU standards and promoting renewable energy sources. The agreement will also assist in enhancing energy security, which is vital for Montenegro’s long-term economic growth and sustainability.
EU Ambassador to Montenegro, Oana Cristina Popa, reaffirmed the EU’s commitment to supporting Montenegro’s EU accession process, emphasizing that reforms in energy security and green transition are central to unlocking Montenegro’s growth potential. These reforms, she noted, will ultimately improve the standard of living for Montenegrin citizens.
EBRD’s Head for Montenegro, Remon Zakaria, highlighted the bank’s partnership with the EU in driving Montenegro’s energy sector reforms. He expressed confidence that these reforms will improve Montenegro’s investment climate, making it a more attractive environment for future investors.
Montenegro’s Minister of Energy and Mining, Saša Mujović, welcomed the cooperation, particularly in implementing the Law on the Use of Energy from Renewable Sources and launching the country’s first renewable energy auctions. The EBRD will also provide expertise for electricity market coupling, assisting in preparing regulations that align with EU standards.
Minister for European Affairs, Maida Gorčević, emphasized that the reforms will help Montenegro align its energy policies with those of EU member states, particularly under Chapter 15 of the EU negotiations, which deals with energy.
In 2023, Montenegro and the EU began implementing a Reform Facility with an initial €10 million grant. This facility provides technical expertise and knowledge transfer for structural reforms, aiming to unlock Montenegro’s growth potential. Other international partners involved in the Reform Facility include the World Bank and the UN family.
Impact on Industry:
The collaboration between the EU, EBRD, and Montenegro is set to accelerate the country’s energy sector reforms, fostering a more sustainable and efficient energy system. Integrating Montenegro’s power market with the EU will improve energy security and create more opportunities for investments in renewable energy. The focus on corporate governance reforms in state-owned enterprises will help increase transparency and attract further investment, contributing to a more robust economy.
Conclusion:
The €2.5 million agreement between the EU and EBRD represents a significant boost for Montenegro’s energy sector reforms. These efforts are essential for aligning Montenegro’s energy policies with EU standards and advancing its green transition. The collaboration is expected to foster economic growth, enhance energy security, and make Montenegro a more attractive destination for renewable energy investments..
Relevant Links:
https://www.gov.me/
