Montenegro is developing its renewable-energy sector around a combination of hydropower, solar and wind resources, supported by a subsea electricity interconnection with Italy. The country’s energy potential extends beyond meeting domestic electricity demand. Developing bankable renewable projects, expanding transmission capacity and establishing transparent market rules are required for Montenegro to serve wider regional electricity demand.
A key step came in July 2025, when Montenegro launched its first renewable-energy auction, targeting 250 MW of solar capacity. The auction followed the adoption of a standalone Renewable Energy Law in 2024 and the introduction of market-based support mechanisms designed to align more closely with European requirements. For projects awarded through renewable-energy auctions to move into operation, developers require connection schedules, spatial planning, environmental reviews and conditions that allow projects to progress from development to electricity production.
Montenegro’s established hydropower sector provides flexibility to the electricity system, although its output is affected by rainfall conditions. Greater use of solar and wind generation can diversify the power mix and reduce exposure to hydrological variability, particularly when combined with energy storage and regional electricity trading.
The expansion of renewable generation also places greater requirements on the electricity grid. A large project pipeline could exceed available transmission infrastructure if generation development and grid investment are not coordinated. The allocation of grid connection rights also needs to prevent speculative projects from occupying limited connection capacity. The future of the Pljevlja thermal-power complex remains linked to the wider energy transition and the economy of northern Montenegro. A transition plan requires cleaner replacement generation, retraining for affected workers and investment in northern municipalities.
The closure of an industrial asset without an alternative economic base could create social consequences alongside the environmental issues associated with the existing facility. Montenegro adopted and notified its National Energy and Climate Plan in December 2025, resolving an earlier delay in the process. The country’s overall Energy Community implementation score was 53% for 2025, indicating progress alongside remaining gaps in execution.
The development of the renewable sector could affect domestic electricity supply, import exposure, investment and electricity exports through the Adriatic. Achieving a broader energy-hub role requires attention to transmission networks, storage capacity and institutional implementation, alongside the development of solar generation.
