Montenegro has great potential for renewable energies, especially wind, solar, biomass and hydropower. 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 refurbishment 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 nearly 40 buildings have already been renovated to improve energy efficiency with a volume of around EUR 35 million. From 2021, 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 (307MW nominal capacity) and Piva (342MW), which play a central role in Montenegro’s energy supply. In both power plants the machinery, control, measuring and protection equipment is largely outdated. The aim of KfW’s investments is to extend the life of the power plants and to ensure their efficiency.
As part of the “BMZ 2030” reform strategy, the Federal Ministry for Economic Cooperation and Development (BMZ) is ending bilateral development cooperation with Montenegro. Apart from the projects and measures still in progress, no further commitments are planned.
Projektinformation Green Public Infrastructure (PDF, 175 KB, nicht barrierefrei)
