Montenegro is launching a new €500,000 grant programme for hotel energy-efficiency investments, with support available to at least 10 hotels and individual grants of up to €50,000. The grants can cover as much as 70% of eligible investment costs. The programme will be implemented by the Eko-fond, with financing provided through the EU’s IPA III framework and the European Commission’s energy-support package for Montenegro.
The latest funding follows an earlier hotel-efficiency programme under which more than €2.2 million in grants was allocated. Eko-fond reported results from 16 hotels supported through the previous programme. In some cases, energy and electricity costs were reduced by as much as 30%, while direct monthly savings reached €2,000. Investments supported under the earlier scheme included photovoltaic systems, heat pumps, building-envelope improvements, more efficient windows and facade elements.
The structure of the new programme differs from the earlier funding. Individual subsidies previously ranged from approximately €60,000 to €200,000, compared with the new maximum of €50,000. The new ceiling provides support for a broader range of smaller efficiency investments across a larger number of hotels, rather than concentrating funding on deeper retrofits at a smaller group of larger properties.
Energy represents a significant controllable operating expense for hotels, which require electricity and other energy services for cooling, heating, hot water, lighting, kitchens, pools, laundries and ventilation. Hotel electricity demand is also concentrated during Montenegro’s summer tourism season, when cooling requirements are high. Reducing energy consumption can therefore affect hotel operating costs in addition to improving energy performance. A reduction in energy expenditure of 20% or 30% can generate recurring savings after the initial investment and grant have been used.
The efficiency programme comes as Montenegro’s tourism sector faces operating costs including wages, food, financing and property-related expenditure, while accommodation providers compete with destinations including Croatia, Greece, Turkey, Albania, Italy and the wider Mediterranean. Energy efficiency provides hotels with an area in which operating expenses can be reduced without reducing service quality. The programme also channels EU support into capital expenditure by private businesses. Investments supported through the schemes include equipment and measures such as boilers, heat pumps, solar installations, insulation and energy-management systems, alongside larger public investments associated with EU support.
Results from the earlier programme can provide data for future efficiency investments. Measured reductions in energy consumption and operating costs can support subsequent projects financed through commercial sources rather than relying entirely on grants.
The Ministry of Tourism and EPCG have also signed a cooperation memorandum aimed at encouraging photovoltaic systems at tourism facilities. The initiative provides another potential means for hotels to reduce their exposure to purchased electricity. Hotel energy investments can include solar generation, heat pumps, efficient cooling, thermal insulation, smarter controls and, eventually, storage, with measures affecting both electricity consumption and peak demand.
Evaluation of the programme can include verified changes in kWh consumption, electricity expenditure, peak demand and emissions, as well as the payback period associated with individual investments. Systematic collection of those results could provide information on which hotel-efficiency measures deliver the strongest financial returns under Montenegro’s climatic and operating conditions, supporting future financing decisions by banks, hotel owners and investors. The new €500,000 funding window links energy-efficiency investment with Montenegro’s tourism sector through direct support for hotel projects, expanding an earlier programme that has already covered 16 properties.
