Montenegro: small country with big ambitions for its energy transition

The small Balkan country is ready to move from coal to renewables, but it’s energy minister says it is “starving for credit lines”

Few countries have such a singular energy problem – and in turn such a clear cut opportunity – as Montenegro.

The Balkan country on the Adriatic Sea has one coal-fired power plant which provides half of the country’s electricity – and in turn, 80-90% of its C02 emissions, according to Montenegro’s energy minister Marko Perunovic.

“To be able to achieve the goals and targets of the energy transition we need to supplement this coal plant with renewables – but we need to go step by step,” says Perunovic.

“What is very important for Montenegro is the social picture. Over 1000 people work in the coal region and are connected with the coal plant, so to begin the energy transition the most important for us is that it is a just transition. It should be reskilling and opening new factories and industries.”

He adds that Montenegro has “great potential for wind and solar – up to 18 hours of solar a day”, but “to be able to realise that potential we need a good credit line – that’s what we are starving for.

"To begin the energy transition the most important thing for us is that it is a just transition"

“We need better communication and accessibility to EU funds. We are a small country – we’re not talking about huge investments. But it’s a very slow process for a credit line. It is taking a lot of time.

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“There are business barriers. You need a lot of time for permits and planning. I am sure we can do these steps much faster. That’s what we need to improve.”

Perunovic stresses that if these barriers can be overcome, Montenegro “can be a great example of the green transition. We can do decarbonisation much earlier than 2050 – more around 2030. If we can phase out coal in the right time, we can be a great example.”

Watch the full interview to find about more about Montenegro’s energy transition.