Montenegro is preparing an investment of around €50 million to support the just energy transition of Pljevlja, with a focus on cleaner heating, improved air quality and greater energy efficiency.
The Ministry of Energy and Mining, through its directorate responsible for energy efficiency and in cooperation with the World Bank, is preparing the Montenegro Just Energy Transition (M-JET) project. The initiative is intended to become one of the key elements of Pljevlja’s transition towards a more sustainable energy system.
“Pljevlja has carried a large part of the burden of Montenegro’s energy sector for decades, and the people of this city deserve to be the first to feel the benefits of the energy transition,” Energy and Mining Minister Admir Šahmanović said.
The planned investment consists of four interconnected components: construction of a new renewable heat source for the district heating system, expansion of the district heating distribution network, support for households switching to cleaner heating solutions and improving energy efficiency, and technical assistance for project implementation.
According to Šahmanović, the transition must translate into tangible improvements for residents, including cleaner air, a healthier environment and better heating.
Around $2–2.5 million in grant funding is expected to be secured for preparation of the investment, covering a feasibility study, environmental impact assessment, project documentation and technical and financial analyses.
The investment phase is expected to receive financial support from the World Bank, while additional grants could potentially be secured through the Western Balkans Investment Framework (WBIF). Preliminary estimates indicate that these grants could cover up to 30% of the total investment, reducing the amount that would need to be financed through borrowing.
The project is expected to reduce the use of coal for heating, improve air quality and help households shift towards cleaner and more energy-efficient heating systems.
The initiative also supports the objectives of Montenegro’s National Energy and Climate Plan and is intended to provide a foundation for Pljevlja’s longer-term transition towards a cleaner and more sustainable energy future.
