On 17 August 2024, Assembly of the Republic of Montenegro adopted the Law on the Use of Energy from Renewable Sources, which was published in the Official Gazette of Montenegro, issue no. 082/24 (hereinafter: the “Law”).

The first law of its kind enacted in Montenegro establishes a solid foundation for encouraging investment in renewable energy sources, with an emphasis on reducing carbon dioxide emissions and increasing the production of energy from clean and sustainable sources.

What should be emphasized from the outset is that this Law fully implements EU Directive 2018/2001 on the promotion of the use of energy from renewable sources, thereby achieving complete alignment with these regulations.

The Law establishes a comprehensive framework for promoting and regulating renewable energy. It defines the share of renewable energy, offers incentives for production, and outlines the process for obtaining preferential status as a producer. It also mandates issuing guarantees of origin for renewable energy, specifies the roles of buyers, producers, and renewable energy communities, and sets conditions for integrating renewable energy into heating, cooling, and transportation sectors. Additionally, it includes criteria for sustainability and emissions reduction, fosters regional cooperation, and addresses other important aspects of renewable energy utilization.

Under the Law, renewable energy sources include non-fossil sources such as wind energy, solar energy (both solar thermal and photovoltaic), geothermal energy, ambient energy, tidal energy, wave energy and other marine energy, hydropower, biomass, landfill gas, gas from wastewater treatment plants, and biogas.