Montenegro embraces clean energy future with first ever renewable energy auction

BAKU, Azerbaijan, July 11. Backed by the European Bank for Reconstruction and Development (EBRD), Montenegro’s Ministry of Energy and Mining has launched the country’s first-ever renewable energy auction, marking a major milestone in its clean energy transition, Trend reports.

The auction offers incentives for up to 250 megawatts (MW) of solar power generation capacity, with full details and tender documentation now available on the Ministry’s website.

The deadline for bid submission is expected around early November 2025.

This landmark initiative is part of a broader technical assistance program supported by the EBRD’s Renewable Energy Market Accelerator (REMA). The program receives financial backing from Austria (through the High-Impact Partnership on Climate Action), Italy (via the Central European Initiative), and the European Union (EU).

Launched in 2022, the REMA program played a key role in developing Montenegro’s new Renewable Energy Sources (RES) Law, which came into force in August 2024.

Aligned with the EU’s Renewable Energy Directive (RED II), the law has been reinforced with secondary legislation enabling this first auction, as well as a forthcoming three-year plan for future renewable tenders—both integral to Montenegro’s EU Reform and Growth Agenda.

Through EBRD support, Montenegro has introduced competitive bidding and other market-based mechanisms to ensure transparency, attract high-quality private investment, and align with its obligations under the Energy Community Treaty.

These reforms aim to increase cost-efficiency and integrate renewables into the national energy grid at scale, enhancing the country’s energy mix and economic resilience.

“We are delighted to have supported the Ministry of Energy and Mining in the design and implementation of Montenegro’s first renewable energy auction. The country now has a solid framework in place to accelerate the development of solar and wind energy, in line with its climate commitments and long-term sustainability goals. The EBRD is proud to be partnering with the Montenegrin authorities on this important transition,” Remon Zakaria, EBRD Head of Montenegro, said.

“The launch of competitive renewable energy auctions is a strategic decision for Montenegro’s energy future. By creating a transparent, market-driven system, we are unlocking the potential of our abundant solar and wind resources to reduce energy costs, strengthen our energy security, and meet our ambitious energy transition goals. This is not only a strategic move for economic development, but a concrete way to deliver clean and affordable electricity to our citizens. With the support of our partners, we are building a modern energy system that benefits our people, protects our environment, and positions Montenegro as a leader in the region’s green transition,” Admir Šahmanović, Montenegro’s Minister of Mining and Energy, mentioned.

“This ground-breaking renewable energy auction underscores Montenegro’s dedication to a sustainable future, aligning it with EU green transition goals. The European Union is proud to support Montenegro in enhancing its energy independence and security. Together, we’re fostering regional growth and stability, setting a precedent for impactful reform,” Johann Sattler, EU Ambassador to Montenegro, stated.

The EBRD’s Renewable Energy Market Accelerator is currently helping 17 countries prepare and implement renewable energy auctions. To date, over 8,500 MW of capacity has been awarded across nine countries.

The EBRD remains a leading institutional investor in Montenegro, having invested over 950 million euros across 99 projects.