D. Sc.

Igor Kovačević
Head of Department of Energy Efficiency and Renewable Energy
Sources
Ministry of Economic Development of Montenegro
ENERGY EFFICIENCY AND RENEWABLE ENERGY
SOURCES PROJECTS IN MONTENEGRO

Regional Energy Security and

Energy Efficiency Conference
Hotel SPLENDID, Bečići, Budva, Montenegro
20th March 2009
 CONTENTS OF THE PRESENTATION
I PART: GENERAL
1. Introduction
2. International cooperation
II PART: RENEWABLE ENERGY SOURCES PROJECTS
1. Potentials of renewable energy sources
2. Overview of Projects
III PART: ENERGY EFFICIENCY PROJECTS
1. Project “Year of energy efficiency”
2. Conclusions

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
Definition:

Renewable energy sources projects in this presentation present projects

for production of electrical energy by renewable energy sources (RES-E), i.e.:

Small hydro power plants (sHPP) (up to 10 MW of installed power)

Wind generator and

Biomass

Energy efficiency (EE) in this presentation is the energy efficiency on the

demand side.

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
 1. INTRODUCTION

Energy sector is recognized in Montenegro (MNE)
as an important driving force of the national
economy

Energy Development Strategy of Montenegro
until 2025 (2007) (EDS) and Action Plan 2008-
2012.

The Strategy sets guidelines for energy progress and
sustainable development:
- improving EE;
- better use of RES-E;
- revitalization of existing and construction of new
electro-energy structures; Tara Canyon

1. Introduction
- achieving balance between energy development
and environment protection, and
- Montenegro as RES-E investment challenge.

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Bečići, Budva Montenegro, 20th March 2009
 2. INTERNATIONAL COOPERATION
Projects supported by donors or international institutions

Ongoing RES-E and EE projects supported by donor or International financing institution (IFI)
DONOR / IFI PROJECT TITLE BENEFICIARY AMOUNT / TYPE / IMPLEMENTATI
(COUNTRY) STATUS ON PERIOD
GTZ GTZ ASE Project (Advisory Services to Energy MED EUR 1.5 mill TA April 2008 –
(Germany) Efficiency in Montengro) Ongoing December 2010
Ministry of Development of Energy Efficiency in Montenegro MED EUR 0.4 mill.TA October 2008
Foreign Affairs - Support to the MEEU (to be developed into Ongoing December 2009

2. International Cooperation
(Norvay) EEA) in MED of Montenegro
KfW Renewable Energies and Energy Efficiency SMEDA EUR 15 mill. credit October 2006
(Germany) Facility Montenegro line, EUR 0.5 mill. TA (revolving fund)
Ongoing
KfW Upgrade of the Energy Act of Montenegro MED TA November 2008 –
(Germany) Ongoing March 2009
UNDP/ GEF Power Sector Policy Reform to Promote Small MED USD 1.0 mill.TA June 2008 –
Hydropower Development in the Republic Ongoing May 2012
of Montenegro
UNDP Climate Change- Initial National Communication MTEP US$ 0.385 mill. May 2008 - May
(INC) under UNFCCC Ongoing 2011

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
Projects supported by donors or international institutions (2)
Ongoing RES-E and EE projects supported by donor or IFI
DONOR / IFI PROJECT TITLE BENEFICIARY AMOUNT / TYPE / IMPLEMENTATI
(COUNTRY) STATUS ON PERIOD
World Bank Energy Efficiency Project in Montenegro MED EUR 6.5 mill. January 2009 -
MES Loan December 2012
MHLSW EUR 0.5 mill.
TA
Ongoing
IMELS Technical assistance aimed at implementation of MED TA November 2004 – not
(Italy) the Kyoto Protocol MTEP Ongoing defined
IMELS CDM pilot projects Feasibility Studies MED TA September 2006 –
(Italy) MTEP Ongoing not defined

2. International Cooperation
Ministry of Energy Efficiency in Montenegro MED, EE private EUR 0.38 mill. Oct 2007 - July 2009
Foreign Affairs sector TA
(Norvay) Ongoing
Agency: ENSI
Ministry of Energy Efficiency in - extended support in MED / MEEU EUR 0.07 mill. November 2008
Foreign Affairs capacity building on financial engineering TA April 2009
(Norvay) Ongoing
Agency: ENSI
EU funded IPA 2007: MED / MEEU, Approx. EUR 1.5 Estimation:
projects “Supporting the implementation of the Energy ERA, mill. October 2009 – to
Community Treaty” TA be defined
EPCG

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
Projects supported by donors or international institutions (3)
Ongoing RES-E and EE projects supported by donor or IFI
DONOR / IFI PROJECT TITLE BENEFICIARY AMOUNT / TYPE / IMPLEMENTATI
(COUNTRY) STATUS ON PERIOD
EU funded IPF: EPCG TA To be defined
projects “Energy Electricity Network Development
Project”
EU funded IPA 2010: MED TA To be defined
projects “Harmonization of national legislation with EU
Acquis in the area of construction, including
energy efficiency and renewable energy sources
on demand side”

2. International Cooperation
EBRD Energy Efficiency Facility CKB, other EUR 15-20 mill. ?
banks, private
companies
EBRD Energy Audits at Big Energy Consumers Steelworks at TA and possibly ?
Niksic, KAP loans at a later stage
IMELS (Italy) The Balkan Renewable Energy Programme MED, Ministry TA and a credit line To be defined
(BALREP) of Tourism and (most likely to the
Environmental banking sector)
Protection
Government Feasibility Study and Technical Design for MED, Ministry TA (donation) To be decided
of Spain Energy Efficiency Measures for the Clinical of Health,
(Spain) Center Podgorica Labour and
Social Welfare

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
 II PART:
RENEWABLE ENERGY SOURCES PROJECTS

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Bečići, Budva Montenegro, 20th March 2009
 3. POTENTIALS OF RENEWABLE ENERGY SOURCES
Hydro-energy potential of watercourses for building sHPP
Theoretical researches

Theoretical (gross) hydro-energy potential for building sHPP in Montenegro

3. Potential of Renewable Energy Sources

(excluding Tara, Ćehotina and Ibar rivers) is estimated to be 800-1000 GWh/
year.

Total theoretical hydro-potential of Montenegro, as given in the Water
Management Plan of Montenegro, is 9846 GWh/year.

Technical (net) usable potential for building sHPP is estimated to be around
400 GWh/year.
Field measurements

HMZ CG, hydrology sector, produced two HYDROLOGY ASSESSMENTS for sHPP
profiles in Montenegro. The assessment was conducted based on the agreement
with the EPCG, and in accordance with the programme with the Norwegian
Water and Energy Directorate from Oslo. The measurements lasted for more
than a year, and were conducted on 30 locations and 27 watercourses.

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
 Wind Potential
Theoretical researches

Numerical simulations

Correction factor, relation of measured and calculated wind speed

Detailed analysis, which covers all relevant limitations influencing the

3. Potential of Renewable Energy Sources

reduction of utilization of wind energy potential
[W/m2 ]
44.0
800
750
700
43.5
650
600
550
43.0 500
S.G.Š.

450
400
42.5 350
300
250
200
42.0
150
100
50
41.5

18.0 18.5 19.0 19.5 20.0 20.5 21.0

I.G.D.
Theoretical energy potential of wind Technical energy potential of wind
[W/m2] at 50 m i.n.t..
[W/m2] at 50 m i.n.t..
Regional Energy Security and Energy Effieciency Conference
Bečići, Budva Montenegro, 20th March 2009
 Wind Potential
Measurements in the field
FERSA (Spain): Ulcinj, Bar, Podgorica, Tivat, Brajići (Budva-Cetinje)
IVICOM WIND (Montenegro) and MITSUBISHI (Japan): Krnovo donje

3. Potential of Renewable Energy Sources

and Krnovo gornje, Nikšić
NTE (Norway): region of Rumija Mountain, Bar
EKO ENERGIJA (Montenegro): Ilijino brdo, Nikšić
CETMA- IMELS (Italy): region of Njegoš
Mountain, Nikšić and Poljice Pass, Budva

Measurement stations in Krnovo gornje

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
 Sun radiation
Satellite measurements

High potential for using solar energy in
Montenegro

3. Potential of Renewable Energy Sources

Number of sunny hours for most part
of Montenegro is above 2000 h/year,
and more than 2500 h/year on the
coast

Coastal and central area of
Montenegro is comparable to the
amount of sun in Greece or South Italy

Podgorica has annual sun radiation
1602 kWh/m2
Global sun radiation – mean daily values
at monthly level (May)

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
 4. OVERVIEW OF PROJECTS
Building of small hydro power plants in Montenegro
1st tender

Ministry for Economic Development signed concession contracts for 8
watercourses
Num Watarcourse Concessionaire Municipaluty Number Instaled power Production
sHPP (MW) (GWh)
1 Bistrica Hidroenergija Berane 8 10 37
Montenegro
2 Šekularska Hidroenergija Berane 5 5 21
Montenegro

4. Overview of Projects
3 Bistrica (BL) Haider Extrem Bijelo Polje 1 20 50
Energy
4 Bjelojevićka Haider Extrem Mojkovac 2 15 48
Energy
Total: 16 50 156

Spatial-planning documents

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Bečići, Budva Montenegro, 20th March 2009
 Building of small hydro power plants in Montenegro (2)
Economic-financial analysis on watercourses for the next tender

average specific investment for building sHPP is1 500 EUR/kW

loan 70 % of total investment, loan period 10 years

interest of loan 8 %, inflation rate 5 %

O & M costs are 4 % of investment

electrical price from sHPP 7,93 c€/kWh

concession time 30 years
Broj Vodotok P E tk [h] Ck [-] VI [€] Ot [€] Trgod [€] Prgod [€] IRR tpov
[MW] [GWh] (%)
(year)

4. Overview of Projects
1 Vrbnica 2,8 12,7 4535,71 0,5250 4.200.000 168.000 606.147 1.020.967 19,4 4,9
2 Bukovica 3,2 14,2 4437,50 0,5136 4.800.000 192.000 692.739 1.141.679 19,0 5,1
3 Tušina 0,5 2,5 5000,00 0,5787 750.000 30.000 108.240 201.002 21,7 4,4
4 Bijela 1,4 5,4 3857,14 0,4464 2.100.000 84.000 303.073 434.140 16,1 6,0
5 Trepačka 2,9 12,1 4172,41 0,4829 4.350.000 174.000 627.795 972.820 17,6 5,4
6 Kraštica 0,8 3,1 3875,00 0,4485 1.200.000 48.000 173.185 249.247 16,2 6,0
7 Murinska 2,1 8,8 4190,48 0,4850 3.150.000 126.000 454.610 707.519 17,7 5,4
8 Velička 0,3 1,5 5000,00 0,5787 450.000 18.000 64.944 120.601 21,7 4,4
9 Komarača 2,6 10,8 4153,85 0,4808 3.900.000 156.000 562.851 868.391 17,6 5,5
10 ðurička 1,4 6,0 4285,71 0,4960 2.100.000 84.000 303.073 482.377 18,2 5,3
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Bečići, Budva Montenegro, 20th March 2009
Wind generators

There are ongoing measurements of wind potential on a number of locations
in Montenegro in order to identify micro locations for wind generators

Preliminary results, capacity factor more than 2000 h/year

Measured wind potentials more than 250 MW (more 25 % of instaled
capacity)

Absorption of the transition system in Montenegro

Spatial-planning documents with Strategic environmental impact assessment

4. Overview of Projects
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Bečići, Budva Montenegro, 20th March 2009
 II PART:
Energy Efficiency Projects in Montenegro

Regional Energy Security and Energy Effieciency Conference

Bečići, Budva Montenegro, 20th March 2009
 5. PROJECT “YEAR OF ENERGY EFFICIENCY”
List of Programs
1. Establishment of core legislative and regulatory framework for energy efficiency (EE)
2. Institutional-organizational capacity building in EE sector
3. Public campaign
4. Enhancement of EE in public buildings

5. Project “Year of Energy Efficiency”

5. Establishment of EE infrastructure for public
6. Removal of barriers and development of mechanism for funding of EE projects
7. Regional Conference on Energy Security and Energy Efficiency
8. Demonstration and training center for EE
9. Training and education about EE
10. Incentives for EE in small businesses
11. Enhancement of international cooperation in the area of EE
12. EE in electricity generation and supply
13. Enhancement of EE of big industrial customers
14. Renewable energy sources
15. Promotion of passive construction and low-energy buildings
16. Promotion of EE in local self-government
17. Promotion of EE in sector of tourism
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 Establishment of core legislative and regulatory framework
for energy efficiency

The principal program within the project “Year of Energy Efficiency " ensuring
establishment of core legal regulations as a basis for development of energy
efficiency (EE) in Montenegro.

Objectives of the program are:

5. Project “Year of Energy Efficiency”

– Energy Efficiency Law
– Development of first priority legal regulations for a sector of building

Institutional-organizational capacity

Objectives of the Program are:
– Establishment of the Agency for EE that would be a
central institution for EE in Montenegro
– Establishment of Fund for EE.

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Bečići, Budva Montenegro, 20th March 2009
 Public Educative-informational Campaign

Objectives of the program are:
– Overall awareness raising regarding the efficient use of energy, as well as
regarding the promotion of EE in Montenegro
– Informing the public on activities, objectives, results and achievements of the
Project “Year of Energy Efficiency”

5. Project “Year of Energy Efficiency”

– Informing various target groups on development of the legislative, regulative
and institutional framework regarding EE

Conducted and completed activities:
– Kick-off and official launch of the Project “Year of Energy Efficiency” in
November 2008;
– Public research and monitoring before the start of the Project ( 63 % did not
now what EE)
– Launch of the informational and promotional campaign: TV and radio spots,
web-site and forum, printed advertisments in printed and electronic media,
press clippings and press releases
– Design, preparation and dissemination of monthly informative brochures…
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 Enhancement of energy efficiency in public buildings

Public sector is one of priority sectors, which has an exceptional potential for EE
and economy savings.

Objective of the program is EE enhancement in public sector and demonstration
of EE measures.
– promotion and implementation of energy audits in public buildings

5. Project “Year of Energy Efficiency”

("Energy Audit")
– introduction of Energy Management System in public sector
– energy saving in public sector
– introduction and development of Energy database

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 Enhancement of energy efficiency in public buildings (2)
Promotion and implementation of energy audits in public buildings

25 buildings

new, Montenegrin educated teams

modern equipment for measurement

5. Project “Year of Energy Efficiency”

Energy saving in public buildings

Exchange lighting bulbs in elementary schools

Projects in lighting

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 Enhancement of energy efficiency in public buildings (3)
Introduction of system for distant metering of consumption of electrical
energy in public buildings (Pilot project - 100 buildings)

automatic and continuation collecting data of consumption of electrical energy in
energy database for public buildings

support to energy managers in public buildings

5. Project “Year of Energy Efficiency”

support to national statistic database

monitoring and metering of EE measures

Remarks
– extending existing system for distance metering and managing system of EPCG
– extending project for distance metering of water consumption and fuels
– realization of the project together with EPCG

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 Renewable energy sources in energy efficiency projects

There is a big potential for use of RES on demand side in order to increase EE.

RES in the sector of construction of buildings-primarily use of heat for heating
and cooling purposes, as well as for heating of sanitary water (RES-H).

Legal regulations should set the framework and regulate the fast-growing
market of construction of buildings to use respective RES for southern, central

5. Project “Year of Energy Efficiency”

and northern zone of Montenegro.
Solar radiation

Solar energy for heating

Investment subsides for solar systems in 2009 is introduced in Podgorica!

The subside is 100 €/m2 area of an installed solar system
(~20 % of investment)

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Bečići, Budva Montenegro, 20th March 2009
 6. CONCLUSIONS

Five-year Action Plan for the Energy Development Strategy of Montenegro
assumes that Montenegro will start using its high energy potential.

Balance is established between energy development and environment
protection.

Montenegro has a high potential for utilization of renewable energy sources;
the potential requires further research and creation of conditions for their
utilization.

Montenegro started implementing programs and projects aimed at improving
utilization of renewable energy sources, with the most important being:
- measuring potentials for construction of sHPP,
- construction of sHPP,
- measuring wind potentials and
- construction of wind generators.

6. Conclusions
Regional Energy Security and Energy Effieciency Conference
Bečići, Budva Montenegro, 20th March 2009
 6. CONCLUSIONS (2)

Ministry for Economic Development of Montenegro, together with national
and international partners, started the project “Year of Energy Efficiency”.

The Project “Year of Energy Efficiency” is the product with conrete activities
presented in:
– Action plan for implementation of the Energy Efficiency Strategy 2008 –
2012 and
– Action plan for implementation of the Energy Development Strategy of
Montenegro by 2025, for the period 2008 - 2012.

Laws and regulations in the area of energy efficiency will secure and bring
an increase in energy efficiency in Montenegro.

Estabishment Energy Efficiency Agency and Fund for Energy Efficiency

Number of activites have been undertaken in the Project

Big financial support was granted to the Ministry for Economic Development
in the area of energy efficiency.

6. Conclusions
Regional Energy Security and Energy Effieciency Conference
Bečići, Budva Montenegro, 20th March 2009
Regional Energy Security and Energy Effieciency Conference
Bečići, Budva Montenegro, 20th March 2009