Montenegro

Montenegro has great potential for renewable energies, especially biomass and water. Hydropower already covers up to 70 % of the electricity supply. However, the current capacity is not sufficient to meet the growing demand for electricity. Therefore, Montenegro has to import electricity at high cost. At the same time, the building sector is one of the largest consumers of electricity and heating energy. In order to increase energy efficiency, Montenegro, as an EU candidate country, has committed itself to meeting European standards. KfW is supporting the country in this on behalf of the German federal government.

For example, KfW Development Bank promotes the energy-efficient renovation of public buildings in the social, administrative and school sectors. Under the programmes "Energy Efficiency in Public Buildings", Phases I-III, in the first two phases around 60 buildings have already been renovated to improve energy efficiency with a volume of around EUR 35 million. From 2020, a further EUR 50 million will be available for a third phase of this successful programme. KfW is also financing the modernisation of the two hydropower plants Perucica (307 MW nominal capacity) and Piva (342 MW), which play a central role in Montenegro's energy supply. In both plants the machinery, control, measuring and protection equipment is outdated. The aim of KfW's investments is to extend the life of the power plants and to ensure their efficiency.

Project information - Green Public Infrastructure  (PDF, 268 KB, non-accessible)

The Adriatic coast with its old towns and nature parks attracts tourists from all over the world. A functioning water supply and waste water disposal system on Montenegro's coast is a basic prerequisite for sustainable tourism and economic development. In addition, pollution of the Adriatic Sea is increasing as a result of rising tourism. The improvement of water supply and sewage disposal is a top priority for the Montenegrin government. On behalf of the German federal government KfW Development Bank has therefore been promoting the expansion, renewal and construction of the technical infrastructure of five Montenegrin coastal communities (Bar, Herceg Novi, Kotor, Tivat and UIcinj) and in Podgorica since 2001. In addition, the projects supported Montenegro in its rapprochement with environmental and technical standards of the European Union.