Lawmakers have wrapped up discussions on the Proposed Law on the Use of Renewable Energy Sources, which, according to Energy Minister Saša Mujović, aims to reduce carbon dioxide emissions and boost the adoption of renewable energy.
In Parliament, Mujović emphasized the importance of this law for closing Chapter 15 of the EU accession process, noting that it should have been enacted by December 31, 2022.
“We’ve received positive feedback from the energy community and are close to passing a law that matches the quality of those in the region. Our objective is to create a favorable environment to quickly fulfill our EU obligations, particularly by reducing carbon dioxide emissions and increasing renewable energy use,” Mujović explained during a joint debate on several legislative proposals, including amendments to the Concessions Law, the Renewable Energy Law, and the Energy Law.
Mujović highlighted that the core of this law revolves around incentive mechanisms aimed at encouraging companies and investors to invest in renewable energy sources (RES) while safeguarding citizens’ interests.
“Under the current incentive system, producers generate energy that we are obliged to purchase, with 85% of the cost covered by the Electric Power Industry and 15% by citizens through a renewable energy fee. In July, citizens paid €900,000 for these fees,” Mujović stated.
The new law, however, introduces a market-based incentive system, which will significantly reduce costs for citizens.
“Montenegro will no longer be required to purchase the produced energy, resulting in financial benefits for citizens,” Mujović added. “All energy will be sold on the market, where market principles will apply.”
Boris Bogdanović, a representative of the Democratic Montenegro party, expressed concerns about past mismanagement of property and the allocation of concessions “like birthday gifts,” citing the example of the Ban brothers, who secured a ferry concession with an annual fee of €200,000, earning that amount in just ten days during the peak season.
“If the state had managed those ferries during the time they were under the Ban brothers’ control, it would have earned €160 million, which is one-third of the Smokovac-Mateševo highway,” Bogdanović argued.
Aleksandra Despotović from the Democratic Party of Socialists (DPS) questioned the lack of a public consultation process for the law, noting that only three roundtable discussions were held, despite the law’s significance.
“What about the power outages along the coast, where tourists are left without water because the water supply is tied to electricity?” Despotović asked.
In response, Mujović explained that power outages in Tivat were caused by damaged cables due to boulevard construction. Additionally, some structures were built on the path of power lines, preventing their activation, while a tycoon reportedly demolished a pole to erect a building.
“We also face issues in Ulcinj, with a large number of illegal consumers, similar to the situation in Zlatica, Podgorica,” Mujović noted.
Slađana Kaluđerović from the Socialist People’s Party (SNP) emphasized that Montenegro needs to finalize its national energy and climate plan.
“Passing this law will complete a crucial segment of that plan. The Ministry of Energy has a tough job ahead,” Kaluđerović said, adding that the Assembly will support the planned reconstruction of the Pljevlja Thermal Power Plant (TPP).
“The situation is serious, and the ecological reconstruction of TPP, which will cost at least €120 million, must be carried out. This won’t reduce CO2 emissions but will address other pressing issues,” Kaluđerović explained.
She also warned that Montenegro faces a series of tough decisions in the energy sector.
Nikola Rovčanin, a member of the Democrats, described the renewable energy law as one of the most important pieces of legislation that Parliament will pass this year.
“Energy and tourism are the two most critical sectors for our country,” Rovčanin remarked, noting that the law is crucial for the development of the energy sector and for distinguishing between serious and non-serious investors.
“In the past, someone could secure profits of €14 million with bank loans and a state contract; now, that will no longer be possible,” Rovčanin said.
Boris Mugoša from the Social Democrats (SD) expressed concern over the lack of public consultation, noting that only a third of the 78 laws passed had undergone such scrutiny.
“We are entering a negative trend. Public consultation is vital in the legislative process,” Mugoša stressed.
Uglješa Urošević from the Europe Now Movement explained that the amendments aim to improve the business environment and optimize the use of renewable energy resources.
Dritan Abazović from the Civic Movement URA stated that if the current government achieves better results in the energy sector than his administration did, he would publicly apologize. “If not, I expect resignations,” he added, criticizing the current administration for allegedly discarding top talent in the energy sector and questioning why critical systemic laws are being proposed through MPs rather than the government, which would require submission to the European Commission.
