Šahmanović for Portal ETV: We are doing everything to prevent electricity price increases, citizens’ living standards are a priority
Montenegro is facing challenges in the energy sector - from the stability of electricity prices to major investments in renewable energy sources. Portal ETV spoke with the Minister of Energy and Mining, Admir Šahmanović, about electricity prices, the operations of the Electric Power Company of Montenegro, strategic partnerships, and plans for energy independence.
At the beginning of the year, the Minister sends a clear and positive message – they are doing everything to prevent an increase in electricity prices. He emphasizes that the price of electricity in Montenegro remains among the lowest in Europe and has been stable for many years.
ELECTRICITY PRICES AND THE STANDARD OF LIVING
ETV Portal: Will electricity bills increase this year and, if so, by how much? What exactly would become more expensive, and is there a risk that higher electricity prices could trigger a chain reaction of price increases in other services?
ŠAHMANOVIĆ: Electricity prices in Montenegro are determined through clearly defined legal procedures and based on analyses submitted by operators and suppliers, with the final decision made by the regulator. The position of the Government and the Ministry of Energy and Mining is very clear - we will do everything within our authority to maintain the current price level and protect citizens’ living standards.
However, we must be realistic and respect the legal framework. Prices depend on several factors: the overall energy situation, production and procurement costs, the condition of the system, and its long-term sustainability.
What I can say with full responsibility is that there will be no sudden price hikes or shocks to citizens’ living standards. Special attention will be paid to pensioners, low-income households, and all those most in need of support. If any price adjustment occurs, it will be mild, gradual, and accompanied by clear and targeted protection measures.
It is important to emphasize that electricity prices in Montenegro are still among the lowest in Europe and have been stable for a long period of time. Therefore, I do not expect that any minor correction could trigger a chain increase in the prices of other goods and services.
I am particularly satisfied that with the adoption of the new Energy Law, energy policy has for the first time been clearly linked with social policy. Through the new regulation on vulnerable customers, households most in need receive full subsidies for electricity consumption of up to 600 kWh per month. In this way, energy ceases to be a burden and becomes a guarantee of basic security and dignity.
EMPLOYMENT POLICY AT EPC
ETV Portal: Last year you sent a list of requirements to the EPC management regarding employment. What did the data show, and does the EPC comply with your requests?
ŠAHMANOVIĆ: The end of the year was an opportunity to review and analyze the work and operations of the EPC, including its employment policy. The vision of the Ministry and the Government is clear - the EPC is entering a major investment cycle, and this requires professional, competent, and responsible staff.
Energy must become a development opportunity for Montenegro, not only in terms of investments but also employment, knowledge acquisition, and new experiences. We need people who will plan and implement state projects.
The issue of party-based employment is not new, and we are aware that there is no simple solution. However, what I want to state clearly is that in the coming years we want the energy sector to be one where workers are in demand - a sector that creates jobs rather than stagnates. This is not a slogan, but a realistic development perspective.
CANCELLATION OF THE BATTERY STORAGE SYSTEM TENDER
ETV Portal: Why was the tender for the construction of battery energy storage systems cancelled last year?
ŠAHMANOVIĆ: It is true that the tender was cancelled, and I stand behind that decision. Battery systems are necessary for Montenegro, there is no doubt about that. However, I assessed that at that moment it was neither the right time nor the appropriate financial model.
The EPC was in a complex situation - the Pljevlja Thermal Power Plant was out of operation, the hydrological year was extremely poor, and several major investments were being implemented simultaneously. Under such circumstances, new borrowing of 48 million euros would not have been a responsible solution.
I believe that through the announced strategic partnerships we can achieve a better and more sustainable financing model for battery systems, without additional burden on the company and the state.
FINANCIAL RESULTS OF THE EPC
ETV Portal: The EPC ended the year with a significant loss. Does the Government have a clear picture of the causes?
ŠAHMANOVIĆ: The negative financial result of the EPC is certainly not good news, but it was not unexpected. It is the consequence of a series of extremely unfavorable circumstances: a months-long shutdown of the Pljevlja Thermal Power Plant, the worst hydrological year in history, and an increase in electricity consumption of about six percent.
Under such conditions, the EPC was forced to purchase a significant portion of electricity on the market at higher prices. I am in constant communication with the company’s management and know that maximum efforts are being made to stabilize the system.
At the same time, the EPC is not standing still - the Gvozd wind farm with a capacity of 54 MW is nearing completion, and an expansion of an additional 20 MW has already been contracted. These are projects that strengthen the company’s energy independence and stability in the long term.
COOPERATION WITH MASDAR FROM THE UAE
ETV Portal: What is the cooperation like with the company Masdar from the United Arab Emirates?
ŠAHMANOVIĆ: We see Masdar as an exceptionally credible and strong strategic partner. Discussions are underway regarding large capital projects in the field of renewable energy sources - hydropower, solar, and wind energy.
We are currently working on defining a list of potential projects, with particular attention to environmental protection and reducing ecological conflicts. Models of cooperation between the EPC and Masdar are also being considered, in order to best utilize Montenegro’s natural potential, combined with the knowledge, technology, and capital of strategic partners.
These are projects worth tens and hundreds of millions of euros, which could be crucial for the energy transition and the gradual phase-out of coal-based production.
PAYMENT OF CLAIMS TO FORMER WORKERS OF THE BAUXITE MINE
ETV Portal: Have the claims of former workers of the Bauxite Mine been paid?
ŠAHMANOVIĆ: At the very beginning of my mandate, I spoke with former workers of the Bauxite Mine and was aware of how much this long-standing issue had burdened their families. With the support of colleagues in the Government, especially the Ministers of Finance and Labor, a model was found to finally start the payments.
The payments are being made in phases and are still ongoing, so I cannot speak about the final amount. The most important thing is that the process has started after ten years of waiting. This is an achievement I am sincerely proud of.
PREPARATIONS FOR THE EU CBAM MECHANISM
ETV Portal: How is Montenegro preparing for the implementation of the EU’s CBAM mechanism?
ŠAHMANOVIĆ: CBAM represents a serious challenge for non-EU countries, especially regarding the export of electricity produced from fossil fuels. During my visit to Brussels, I had the opportunity to present the results achieved by the Ministry over the past eight months.
We have fulfilled almost all obligations from the Reform Agenda and Chapter 15, which has been recognized by the European Commission. This will be an important mitigating factor in future amendments to the CBAM regulation.
Initial estimates of additional costs have already been significantly reduced, but the message is clear - we do not have time to wait. We must accelerate investments in renewable energy sources in order to protect the competitiveness of our economy.
NEW MINING CONCESSIONS
ETV Portal: Are new mining concessions being planned?
ŠAHMANOVIĆ: Mining is a specific and often stigmatized sector. The annual concession plan for 2026 will soon go to public consultation. In parallel, we are working on amendments to the Law on Geological Exploration and on a new Mining Law.
The goal is clear - to use mineral resources in the best interest of the state, with the highest standards of environmental protection and full transparency of the process.
ENERGY INDEPENDENCE OF MONTENEGRO
ETV Portal: Does Montenegro have a plan for energy independence?
ŠAHMANOVIĆ: For decades, Montenegro has not built new large energy facilities, while global demand for electricity is growing rapidly, especially due to the development of artificial intelligence and data centers.
This clearly shows how quickly the global energy landscape is changing and how important it is for Montenegro to find its place in this transition. Our answer lies in large capital projects based on renewable energy sources, through strategic partnerships with credible investors.
We have the potential, our geostrategic position works in our favor, the legislative framework is fully aligned with the EU, and investor interest exists. What we have least of is time. If, as a society, we recognize energy as a state priority, the results will not be lacking.