Energy sector of Montenegro - present situation and future plans -

1
Energy sector of Montenegro- present situation
and future plans -
Montenegro Ministry of Economy

• Author
• Božidar Pavlovic

2
Content

• Strategic guidelines
• Legal framework
• Energy production/consumption
• Energy indicatiors for Montenegro
• RES potential in Montenegro
• EE potential in montenegro

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Strategic guidelines

• Energy is identified as one of the main factors
  of economic development
• Main priorities and key strategic guidelines of
  energy policy are security in terms of energy
  suply, development of competitive energy market
  and sustainable energy development
• Strategic documents in the field of energy
• Energy Policy of Montenegro until 2030 (from
  2010)
• Energy Development Strategy of Montenegro until
  2025 (the document is currently updated) (from
  2007)

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Legal framework

• Membership in the Energy Community and the
  obligation related to implementation of certain
  directives and regulations for Montenegro
  represents a mitigating circumstance in terms of
  defining the legal framework

• Legislative framework in the field of energy is
  relatively new and the work on defining the
  regulatory framework for certain areas is
  intensive
• Legislative framework in the field of energy
• Law on Energy (May 2010)
• Law on Energy Efficiency (May 2010)

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Law on Energy - transposed

• Directive 2001/77/EC of on the promotion of
  electricity produced from renewable energy
  sources in the internal electricity market
• Directive 2009/28/EC on the promotion of the use
  of energy from renewable sources and amending
  Directive 2001/77/EC and Directive 2003/30/EC
• Directive 2005/89/EC measures to safeguard
  security of electricity supply and infrastructure
  investment
• Directive 2004/8/EC on the promotion of
  cogeneration based on a useful heat demand in the
  internal energy market
• Directive 2009/119/EC imposing an obligation on
  Member States to maintain minimum stocks of crude
  oil and/or petroleum products

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Law on Energy new obligations

• Directive 2003/30/EC on the promotion of the use
  of biofuels or other renewable fuels for
  transport
• Third package of legislation for the internal
  energy market (EU) - deadline by January 1st,
  2015.
• Directive 2009/72/EC on common rules for the
  internal electricity market
• Directive 2009/73/EC (13 July 2009) on common
  rules for the internal market in natural gas

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Law on Energy Efficiency - transposed

• Directive 2006/32/EC on energy end-use efficiency
  and energy services
• Directive 2002/91/EC on the energy performance of
  buildings repealing Directive 2002/91/EC
• Directive 92/75/EEC on the energy labeling of
  household apliances, and associated
  implementation directives for individual
  appliances
• Directive 2005/32/EC establishing a framework for
  the setting of ecodesign requirements for
  energyusing products

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Law on Energy Efficiency new obligations

• In a meantime all 4 mentioned directives are
  repealed, and Montenegro have obligation to
  harmonize developed legislation with requirements
  of the new directives
• Directive 2012/27/EU on energy efficiency,
  amending Directives 2009/125/EC and 2010/30/EU
  and repealing Directives 2004/8/EC and 2006/32/EC
• Directive 2010/31/EU on the energy performance of
  buildings repealing Directive 2002/91/EC
• Directive 2010/30/EU on the indication by
  labelling and standard product information of the
  consumption of energy and other resources by
  energy-related products (recast) and implementing
  regulations
• Directive 2009/125/EC establishing a framework
  for the setting of eco design requirements for
  energy-related products (recast) and implementing
  regulations

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Legal framework - priorities

• Regarding the legal framework the work plan
  priorities should be as follows
• Transposition and steps towards the
  implementation of the Third Package on the
  Internal Market in accordance with stated
  Decision,
• Transposition of the requirements of the new
  directives in the field of energy efficiency,
• Preparation and implementation of Action Plans
  for energy efficiency and renewable energy,
• Expansion of the Acquis to rules on energy
  statistics, RES and oil reserves

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Institutional framework

• Ministry of Economy (ME) is the ministry
  responsible for energy, Within the ME three
  sector cover energy issues Sector for Energy,
  Sector for Energy Efficiency and Sector for
  Mining and Geological Explorations.
• Energy Regulatory Agency (ERA) has authorisation
  to regulate the energy sector in Montenegro, in
  accordance with the Law. 
• Elektroprivreda Crne Gore (EPCG AD) is the holder
  of three licenses for (i) generation, (ii)
  distribution of electricity and distribution
  system operator (DSO) and (iii) supply of
  electricity
• Crnogorski elektroprenosni sistem Crne Gore (CGES
  AD) was unbundled from EPCG AD in 2009. CGES AD
  owns two licenses for transmission system
  operator (TSO) and transmission of electricity.
• Crnogorski operator tržišta elektricne energije
  (COTE Ltd) was unbundled from CGES AD in December
  2010 with the Decision of the Government of
  Montenegro and own a license for electricity
  market operator.

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Gross domestic energy consumption1990-2010 (PJ)
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Gross domestic consumption by carier1990-2010
(PJ)
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Final energy consumption by sector1990-2010 (PJ)
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Gross electricity supply 1990-2010 (PJ)
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Energy Indicators (2008-2010)
No. Indicator Unit 2008 2009 2010
1 Energy intensity 2 (EI2) Final energy consumption / GDP (MJ/000 EUR-2000) 22.751,64 20.168,25 20.032,39
2 Final electricity consumption per GDP (kWh/000 EUR-2000) 2.425,73 2.015,71 2.214,64
3 Final energy consumption per capita GJ/capita 56,91 47,36 47,69
4 Final electricity consumption per capita kWh/capita 6.068,16 4.733,38 5.272,76
5 Share of gross electricity production from RES in gross electricity consumption () 32,66 54,21 66,21
6 Share of energy produced from RES in gross final energy consumption (GFEC) () 19,53 28,74 36,28
7 Emission of CO2 per capita t CO2/capita 4,83 3,34 4,66
8 Emission of CO2 per unit of GDP (kg CO2/EUR-2000) 1,93 1,42 1,96
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RES potential in Montenegro - consumption in
2008 -
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RES potential in Montenegro - HPP -

• Hydropower theoretical potential 10.6 10.8
  TWh technical potential 4.1 5 TWh
• Project of construction of hydropower plants on
  Moraca river (4 power plants with installed
  capacity of 242 MW annual energy production of
  620-720 GWh construction costs around 480
  million euros). The last tender for the system of
  HPPs on the Moraca river failed (September 2011).
  
• Process of valorization of the potential of the
  Komarnica river (168 MW of installed capacity
  annual energy production of 232 GWh construction
  costs around 160 million euros)

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RES potential in Montenegro - Small HPP and Wind
-

• Projects of construction of small hydro power
  plants (13 concessions were granted, 35 small
  hydro power plants were planned with total power
  of 100 MW and annual production of 300 GWh)

• Project of construction of wind power plants (2
  concessions were granted, with installed capacity
  of 46 MW and 72 MW)

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RES potential in Montenegro - Solar -

• The horizontal insolation in Podgorica is around
  1,600 kWh/m2 yr
• Use of solar radiation for electricity generation
  is not practically exploited
• 5 kW PV is currently used in municipality of
  Perast for charging of the electric cars and
  bicycles that are used for public transport.
• The UN building in municipality of Podgorica,
  that is under construction plans to install a 136
  kW PV power plant on the roof.

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EE potential in Montenegro

• Energy efficiency is one of priorities of the new
  energy policy
• Energy efficiency is recognised as a
  cost-effective and fast way to increase security
  of energy supply and reduce the greenhouse gases
  emissions responsible for climate change.
• Two energy intensive industrial companies, the
  Aluminium Plant Podgorica (KAP) and the Steel
  Works Plant in Niksic consumed about 45of the
  total final energy consumption and 50 of final
  electricity consumption in 2008.
• Transport is also a significant energy consumer
  contributing to about 28 of the final energy
  consumption 2008 with significant unexploited EE
  potential.

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EE potential in Montenegro

• Bildings in households, commercial and public
  buildings consumed about 30 of the final energy
  consumption
• Buildingsare characterized by poor energy
  performance of constructions and technical
  systems, deficient maintenance and low level of
  awareness among energy consumers
• District heating and natural gas is not available
  which results in use of electricity for space
  heating
• Solar thermal system are not used enough
  especialy in south region

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EE potential in Montenegro- pilot projects -

• Energy efficiency projects
• Reconstructions of public buildings (healthcare
  and educational) on the basis of soft loans the
  government took from the World Bank and KfW Bank
  in the total amount of around 20 million euros.
  Around 50 public buildings will be refurbished
  through these projects
• Montesol program of interest free loans for
  households for installation of solar systems for
  water heating. The project is supported with a
  grant in the amount of 1 million euros from the
  Ministry for Environment, Land and Sea of the
  Republic of Italy through the United Nations
  Environment Programme

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THANK YOU FOR YOUR ATTENTION!
Contact Ministry of Economy Rimski trg 46,
81000 Podgorica bozidar.pavlovic_at_ee.me.org