Bijelo Polje, March 5, 2025 – Energy efficiency is a key step toward a sustainable future for Montenegro, which is why more than 4,500 households across the country are already on the path to improving energy savings in their homes.
This was highlighted at an event in Bijelo Polje, organized on the occasion of Energy Efficiency Day by the United Nations Development Programme (UNDP) in partnership with the Delegation of the European Union to Montenegro, the Ministry of Energy, and the Environmental Protection Fund (Eco Fund), with financial support from the European Union.
The Energy Efficiency Incentive Programme for Households, funded by the EU and implemented by Eco Fund and the Government of Montenegro with the support of UNDP, is investing in improving the daily lives of citizens across Montenegro. From window replacements and thermal insulation to solar panels and energy-efficient heating systems, this Programme enables citizens to reduce costs, improve their quality of life, and contribute to better air quality both indoors and outdoors with financial support. So far, over 2,500 applications have been approved, and this number is expected to grow in the coming months.
The total investment value of the Energy Efficiency Incentive Programme is estimated at over 15 million euros, further stimulating the development of green jobs and strengthening the local economy. By engaging 27 Montenegrin companies in the implementation of works, the Programme contributes to increased employment and enhances the competitiveness of businesses that apply environmentally friendly solutions. Such investments foster sustainable economic growth, accelerate Montenegro’s green transition, and reduce the negative impact on the environment.
UNDP Resident Representative in Montenegro, Ekaterina Paniklova, emphasized that investing in energy efficiency means investing in a better quality of life.
“Our goal is clear – to enable every household to access energy-efficient solutions. Through innovative support models and close cooperation with institutions, we are working to make energy efficiency accessible to all. This Programme is proof that the joint efforts of institutions, international partners, and local communities can directly and positively impact the quality of life for citizens. UNDP is a reliable partner to Montenegro in the process of green transition. Our expertise, innovative approaches, cooperation, and support at all levels – from policymaking to concrete investments in sustainable development – remain a priority,” said Paniklova.
Through the Energy Efficiency Incentive Programme for Households, the EU has provided 8 million euros, supplemented by additional financial contributions from Eco Fund and the Municipality of Pljevlja. This has created a support fund for citizens who want to invest in energy efficiency and improve their quality of life.
The EU Ambassador to Montenegro, Johann Sattler, highlighted the importance of energy efficiency as one of the key elements of sustainable development and EU integration.
“Montenegro is part of the EU’s Renovation Wave initiative, a transformative program aimed at modernizing public and residential buildings to make them more energy-efficient, comfortable, and environmentally friendly. As part of the recently adopted Growth Plan for Montenegro, special focus has been placed on renewable energy sources and energy efficiency, with the ambitious goal of renovating 200,000 m² of public buildings by the end of 2027. The next phase will expand these efforts to residential buildings, improving insulation and heating systems – helping thousands of families reduce energy costs and enhance their quality of life,” said Sattler.
The Minister of Mining, Oil, and Gas and Acting Minister of Energy, Admir Šahmanović, highlighted the importance of institutional support and continued investments in this field.
“Our vision is clear: Montenegro as an energy-efficient, competitive, and environmentally responsible economy that uses resources rationally, reduces energy costs, creates new jobs, and improves citizens’ quality of life. We will continue to invest maximum efforts in this process because we believe that only through joint action can we achieve ambitious goals and create a stable, sustainable, and prosperous energy sector for future generations,” stated Minister Šahmanović.
The Mayor of Bijelo Polje, Petar Smolović, emphasized the role of local communities in the energy transition.
“In Bijelo Polje, we recognize that energy efficiency is not just a trend but a necessity. That’s why we have taken concrete steps toward sustainable solutions. Through projects to improve public lighting, increase energy efficiency in schools and institutions, and provide incentives for households and businesses – such as installing air purifiers in public institutions, schools, and kindergartens, filters on critical heating systems, distributing energy-efficient air conditioning units, and applying thermal insulation on facades – we are demonstrating our commitment to building a more energy-sustainable and healthier Bijelo Polje,” Smolović stated.
At the event, the Director of Eco Fund, Draško Boljević, presented the results of the Programme implemented in cooperation with UNDP, including data on the number of registered households, types of energy efficiency measures implemented, and expected energy savings.
“Energy efficiency projects bring benefits to citizens – by reducing energy costs, to businesses – by increasing competitiveness and creating jobs, and to the environment – by reducing greenhouse gas emissions. Eco Fund serves as the implementation unit of this significant project but is also a driver of numerous energy efficiency processes that play a key role in sustainable development,” emphasized Boljević.
Through an expert discussion involving representatives from the EU Delegation, UNDP, the Ministry of Energy, Eco Fund, NLB Bank, and a subsidy beneficiary, participants analyzed the Programme’s progress and outlined the next steps to improve energy efficiency in Montenegro. Panelists discussed policies, financial instruments, and the role of local communities in the energy transition, while citizens who have already benefited from the subsidies shared their experiences, highlighting the advantages of energy efficiency measures – from lower electricity and heating bills to significant improvements in home comfort.
Source: UNDP Montenegro