The European Union and the European Bank for Reconstruction and Development (EBRD) have committed 2.5 million euros to enhance Montenegro’s energy security, investment climate, and the operations of state-owned companies.

As announced by the EBRD, the organization will aid in enhancing the regulatory framework, which is essential for promoting renewable energy and integrating Montenegro into European and regional electricity markets. This initiative is pivotal for facilitating the green transition and Montenegro’s integration into the EU. The EBRD will also focus on improving efficiency and governance in state-owned enterprises.

The EU Ambassador in Montenegro, Oana Kristina Popa, reaffirmed her strong support for Montenegro’s EU accession and the EU’s commitment to assist the country in executing its remaining reforms.

“Reforms are vital for unlocking Montenegro’s growth potential, which is crucial for energy security and the green transition. We anticipate that implementing reforms from the growth plan will provide a significant boost to the Montenegrin economy, ultimately leading to improved living standards for citizens,” said Popa, as reported by the EU Delegation to Podgorica.

Remon Zakarija, the Head of the EBRD Office for Montenegro, stated that the EBRD is pleased to enter a partnership with the EU to assist Montenegro in advancing and implementing essential reforms in the energy sector and the governance of state-owned enterprises.

“This initiative is designed to help Montenegro achieve its objectives by promoting sustainable policies and economic reforms that will foster long-term prosperity and European integration. We believe Montenegro will take significant strides in reforming its energy sector, creating a more robust and appealing environment for investors,” Zakarija remarked.

Minister of Energy and Mining, Sasa Mujović, noted that his ministry collaborates effectively with the EU delegation, which actively supports and monitors the progress of Montenegro’s energy transition.

“An example of this collaboration is the continuity provided through various programs aimed at implementing reforms effectively and within the set timelines. This will have a positive initial impact on fulfilling the final measures from Chapter 15. By signing this Agreement, the European Bank for Reconstruction and Development has reaffirmed its role as our reliable partner for key energy projects,” he stated.

This Agreement will facilitate ongoing cooperation in Renewable Energy Sources, specifically regarding the initiation of the first auctions and the semi-annual preparation involving joint teams of consultants and representatives from the Ministry of Energy and Mining.

“In addition to the auctions, the EBRD will supply experts to assist in connecting the electricity market, and we will receive substantial help in preparing all regulations to align with European Union standards,” Mujović added.

Minister of European Affairs, Maida Gorčević, highlighted the significance of the EU reform instrument, which is formulated to aid vital reforms related to the Union’s accession process. Besides the necessary reforms from the growth plan, she stated that the expertise from EBRD colleagues is invaluable in expediting the accession negotiations.

“I am confident that the negotiating team focusing on Chapter 15 will greatly benefit from this additional support aimed at ensuring compliance with EU member states’ energy policies and standards,” emphasized Gorčević.

In 2023, Montenegro and the EU initiated the implementation of a reform instrument backed by an initial grant of 10 million euros from the EU budget. The reform instrument aims to provide technical expertise and knowledge transfer to Montenegro, facilitating crucial structural reforms in its economy.

This reform instrument also establishes a platform for collaborative and coordinated efforts between Montenegro and key international partners to unlock growth potential. Current partners, in addition to the EBRD, include the World Bank and the UN family.