Minister of Energy and Mining Admir Šahmanović stated that the launch of auctions for renewable energy sources marks a historic step towards Montenegro’s energy independence and its positioning as a regional leader in green transition. He expects investments between 300 and 500 million euros in the coming years thanks to this mechanism.
Since taking office four months ago, Šahmanović emphasized that the ministry focused on long-term reforms, strengthening the legal framework, opening markets, improving coordination with state companies, and initiating infrastructure projects. Key laws adopted include the Energy Law, the Security of Supply of Petroleum Products Law, and the Offshore Hydrocarbon Exploration and Production Safety Measures Law. These laws create a stable system, align Montenegro with EU standards, and establish transparent support for renewable energy projects.
The ministry recently opened the first-ever auction process for renewables in Montenegro, offering a competitive and transparent model that attracts better prices, technologies, and responsible partners. This is seen as a crucial move toward energy independence and regional leadership, expected to boost the energy sector, create jobs, and strengthen local industry.
Šahmanović expressed satisfaction with investor interest, particularly in solar and wind projects, highlighting the return of trust in Montenegro’s energy market due to stable legal conditions and clear procedures.
Regarding the second underwater power cable between Montenegro and Italy, preparations are ongoing, though technical and regulatory complexities prevent setting exact timelines. This cable is strategically important for export capacity, renewable energy utilization, and energy security.
The contract with Swiss company 8B Capital for EPCG’s steel plants is being terminated due to unmet financial obligations. The state will take legal steps to protect assets and prevent further losses.
The environmental reconstruction of the Pljevlja Thermal Power Plant is progressing well and expected to finish by November 2025. This will allow the plant to operate until at least 2041, maintaining system stability during the transition to renewables.
Montenegro is working on establishing mandatory petroleum reserves by the end of 2025 to ensure energy security during crises.
The arbitration case initiated by Swiss company Tara Resources over a canceled mining concession is ongoing. The government is ensuring strong legal representation and stands behind its decisions made in public interest.
There are currently no plans to increase electricity prices despite the need to import energy during the thermal plant’s reconstruction. The government aims for a fair and socially responsible energy transition, including protecting vulnerable groups through new energy poverty measures.
Šahmanović acknowledged some progress in managing state-owned energy companies but calls for more modern governance, greater accountability, and more efficient investment implementation. He stressed that these companies should drive development rather than act as mere administrative bodies, with ongoing efforts to rationalize operations and improve business culture.
