The Sound of Economics

Montenegro’s power connection to the EU

Apr 1, 2026
Rouven Stubbe, researcher at Helmholtz-Zentrum Berlin, explains technical implications of CBAM and electricity market rules. Nina Vujanović, Bruegel’s Western Balkans expert, maps regional market coupling and green potential. Admir Šahmanović, Montenegro’s Minister of Energy and Mining, outlines plans for cables to Italy, solar tenders, FDI and a coal phase-out. They discuss market coupling, CBAM impacts, renewables pipeline and regional integration.
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INSIGHT

Montenegro Positioning As Renewable Energy Bridge

  • Montenegro aims to be a regional renewable energy hub leveraging a 600 MW undersea cable to Italy and a planned 1.2 GW expansion for market coupling with the EU.
  • The government has aligned laws with EU standards, held a failed renewables tender, and plans a new 250 MW solar tender to attract €400–500m FDI.
ADVICE

Fix Failed Tender Quickly To Capture Investor Momentum

  • Re-run and fix the failed renewable auction quickly with international support to capture investor interest and deliver projects fast.
  • Montenegro is preparing a new tender (with EBRD consultants) within ~30 days for 250 MW of solar to unlock €400–500m FDI.
ANECDOTE

G2G Deals With France UAE And US To Attract Renewables

  • Montenegro signed government‑to‑government deals to attract renewables investment, including with France (EDF) and UAE, and is negotiating one with the US.
  • The UAE joint venture could bring ~€2bn in renewables projects; G2G deals speed investor confidence.
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