Montenegro is dedicated to the green transition and European integration, progressing toward decarbonization. However, the process must be gradual, thoughtfully designed, and backed by concrete mechanisms from the European Union (EU), stated Ivan Bulatović, the Executive Director of the Electric Power Company of Montenegro (EPCG).

Speaking at the international energy symposium organized by EPCG in Budva, Bulatović emphasized the role of Montenegro and EPCG in the energy transition.

“It is both a pleasure and an honor to have organized such a significant gathering for the fourth consecutive year,” Bulatović remarked.

He noted that this year’s event featured five thematic panels and three expert presentations, creating a platform for fresh perspectives and viable solutions that are more essential than ever.

The EPCG statement highlighted that the symposium particularly focused on the CBAM (Carbon Border Adjustment Mechanism) and the EU ETS emissions trading scheme, both of which present challenges and opportunities for the electricity sector in the Western Balkans.

Bulatović addressed the implications these mechanisms have on the operations of energy firms in the region.

“CBAM is a looming challenge. In Montenegro, where coal-fired power contributes about 40% of annual production—rising to 70% in summer—a tax on exports would complicate matters significantly,” Bulatović explained.

He acknowledged their awareness of the decarbonization journey and their commitment to it.

“Nonetheless, we will have to depend on coal for the foreseeable future. Hence, a gradual, well-planned process supported by concrete EU mechanisms is crucial,” he added.

Bulatović also outlined both short-term and long-term challenges related to decarbonization.

“These include intricate administrative processes, technical network constraints, financing issues, and market liberalization,” he noted.

He warned that if CBAM introduces additional costs, it would significantly limit investment opportunities in renewable energy sources.

“Moreover, constructing new capacities like wind farms takes years, and obtaining permits for solar power plants is often slow and inconsistent,” he expressed.

Bulatović emphasized the need for genuine transition and robust international support.

He reiterated that Montenegro is steadfast in its commitment to green transition and European integration.

He also revealed that the National Energy and Climate Plan, a strategic document outlining energy development directions until 2030, will be adopted soon.

“Our symposium aims to highlight contemporary trends and strengthen regional cooperation,” Bulatović stated.

He maintained that, as energy challenges cross borders, only by collaborating can a secure, sustainable, and competitive energy future be achieved.

According to EPCG, the event gathered over 250 participants from around the region and Europe, including representatives from energy companies, institutions, international organizations, and the expert community.

Several experts emphasized the urgent need for legislative and financial measures to facilitate a just transition to clean energy sources, carefully considering local specifics.

“While the CBAM mechanism is conceptually a tool for combating climate change, it raises concerns in its current form due to the lack of clear distinctions between electricity sources,” the statement mentioned.

EPCG remains committed to fostering dialogue and paving the way for a greener, more resilient future.

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