In the first six months of this year, more than 3.4 million euros in subsidized fees, excluding VAT, were paid through the Montenegrin Electricity Market Operator (COTEE) to private companies, mostly those operating small hydropower plants (SHPP) and wind farms, according to data from the NGO Action for Social Justice (ASP).
Since 2014, when the first SHPP began operating, subsidies paid through COTEE have reached around 102 million euros, excluding VAT. ASP argues that with such an amount, the state could have fully resolved issues such as building centers for people with special needs, homes for the elderly, or constructing new schools and kindergartens.
Of the 3.4 million euros in subsidies paid in the first half of this year, over 2.6 million went to electricity produced from wind farms, while the rest went to small hydropower plants. ASP says these subsidies are based on laws introduced during the rule of the Democratic Party of Socialists, which they claim are highly damaging for consumers.
The business model granted concessions for power plants for 27 to 30 years, with subsidies for the first 12 years, mainly paid by consumers through electricity bills or partially from the state budget. A total of 33 small hydropower plants were built under this scheme, mostly in the north of the country, where locals say rivers have been severely damaged. Subsidies are also being paid for the large wind farms Možura and Krnovo, as well as several solar plants.
ASP noted that a new Law on Renewable Energy was adopted in August 2023, maintaining incentives for renewable power generation. Since mid-2022, dozens of permits have been issued for new large-scale wind and solar projects. The projected installed capacity of these planned plants is nearly three times greater than the current total capacity of all power plants in Montenegro.
ASP warned that Sinjajevina, previously saved from becoming a military training ground, is now at risk from energy developers, as environmental impact studies for projects there have already been approved.
