Montenegro's Ministry of Energy and Mining, with substantial backing from the European Bank for Reconstruction and Development (EBRD), has officially launched the nation's first competitive renewable energy auction. This landmark tender, unveiled on July 11, 2025, targets the development of 250 megawatts (MW) of solar power generation capacity, signaling a significant stride in the country's energy transition. Detailed tender documents and submission guidelines are accessible via the Ministry’s website, with bids expected by early November 2025.

This auction represents a critical advancement in Montenegro’s shift towards a market-based renewable energy sector. It is an integral component of a comprehensive technical assistance program delivered through the EBRD’s Renewable Energy Market Accelerator (REMA), bolstered by financial contributions from Austria (via the High-Impact Partnership on Climate Action), Italy (through the Central European Initiative), and the European Union (EU).

Initiated in 2022, the technical assistance program facilitated the drafting and implementation of Montenegro’s new Renewable Energy Sources (RES) Law, which became effective in August 2024. This legislation aligns seamlessly with the EU’s updated Renewable Energy Directive (RED II) and is complemented by secondary regulations that enable this initial auction and a forthcoming three-year auction plan, both consistent with Montenegro’s EU Reform and Growth Agenda. The EBRD’s support has also been instrumental in introducing competitive bidding and other market-based mechanisms, ensuring adherence to Montenegro’s obligations under the Energy Community Treaty. These reforms aim to attract high-quality private investment, optimize cost-efficiency, and bolster transparency across the energy sector.

Remon Zakaria, the EBRD’s Head of Montenegro, stated, “We are delighted to have supported the Ministry in designing and implementing Montenegro’s first renewable energy auction. The country now possesses a robust framework to accelerate solar and wind energy development, aligning with its climate commitments and long-term sustainability goals.” Admir Šahmanović, the Montenegrin Minister of Mining and Energy, emphasized, “The launch of competitive renewable energy auctions is a strategic decision for Montenegro’s energy future. By establishing a transparent, market-driven system, we are unlocking our abundant solar and wind resources to reduce energy costs, strengthen energy security, and achieve our ambitious transition goals.” Johann Sattler, the EU Ambassador to Montenegro, added, “This ground-breaking auction underscores Montenegro’s dedication to a sustainable future, aligning it with EU green transition goals.”

The EBRD’s REMA program currently assists 17 countries in preparing and conducting renewable energy auctions, leading to over 8,500 MW of awarded capacity across nine nations to date. The EBRD stands as a leading institutional investor in Montenegro, with total investments reaching €950 million across 99 projects.