The Government of Montenegro has decided it will not be encouraging the construction of new facilities for the production of energy from renewable sources. The reason it cites for this is the achievement of the national target of having 33% energy from renewables in the country's total energy consumption.
During the government's 33rd cabinet session on July 22, 2021, it said the administration has adopted the report on the implementation of the National Action Plan for the use of energy from renewable sources until 2020, for the period 2018-2019.
In 2018, the share of renewable energies had reach 39.75%, according to the report adopted and in 2019 it grew to 38.69%. In accordance with the Law on Energy, the 'Government ceases to encourage the construction of new facilities for the production of energy from renewable sources', it stated.
This would mean no state support for new renewable energy facilities in the country. According to the Balkan Green Energy News, the Minister of Capital Investments Mladen Bojanić said his ministry will propose to the government to repeal the decree on incentive prices for electricity as soon as possible, and that for new facilities the status of privileged power producer will not be granted anymore.
According to the International Renewable Energy Agency (IRENA), at the end of 2020, Montenegro's total installed renewable energy capacity was 782 MW, with only 6 MW of solar PV share and majority of hydropower at 658 MW.
In June 2020, the government had approved amendments to Law on Energy, easing process for citizens to install solar panels, generate and sell excess power to the grid (see Montenegro Eases Self Power Generation Rules).