Amendments to the Law on Energy – incentives for owners of small hydro-power plants remain in force in Montenegro

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The Government of Montenegro has determined the Proposal of Amendments to the Law on Energy, which does not envisage the abolition of incentives for privileged producers who produce electricity from renewable energy sources (RES). Several non-governmental organizations, citizens and political parties, through remarks and comments, demanded the abolition of incentives, which have been paid since 2014.

Explaining the proposal of the Government, the Minister of Economy, Dragica Sekulic, said that the Law on Energy prescribes that it is possible to give incentives for the construction of facilities for the production of renewable energy sources.

“Through a public debate, we received proposals, but no new facility implies an incentive price. We had tenders for a solar power plant, wind power plant and none of those contracts implies incentives, “Sekulic said after the Government session, adding that the executive power did not issue any new concessions in this mandate, but that concessions were in the procedure before the current government was appointed.

Eligible producers are paid at the incentive price for each kilowatt-hour (kWh) produced and the purchase of each kWh produced is guaranteed.

The proposed amendments to the Energy Law stipulate that the eligible producer has the right to incentive measures that are valid at the time of submitting the request for acquiring temporary status of the eligible producer, then that the eligible producer has the right of priority in taking over the total produced electricity into the transmission or distribution system endangered security of the system, as well as that the payment to the privileged producer for the produced energy at incentive prices is made for the amount of electricity measured at the place of connection of the production facility to the system. Incentives are paid through electricity bills, and they are paid by the Government, through excises on coal, citizens and companies. Up to 300 kWh of electricity consumed is paid by the Government, and every kilowatt-hour is paid by citizens and companies at a price of close to one cent.

The Minister said that the draft law enables the economy to connect to the electricity network easier, faster and cheaper, and gives households the opportunity to produce electricity for their own needs.

“In cooperation with colleagues from the Ministry of Sustainable Development and Tourism, through amendments to the Law on Construction of Facilities, and now through amendments to the Law on Energy, we provide the opportunity for every household in Montenegro to build a photovoltaic system on its own or the roof of an auxiliary facility. it would be used for the production of electricity that would meet their needs, “Sekulic pointed out.







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