SUMMARY:
Montenegro has the potential to develop additional hydro and geothermal power plants, given its abundance of rivers and streams, as well as solar and wind energy plants. Montenegro only uses approximately 20 percent of its hydro potential. To fully develop this sector, Montenegro will need to upgrade its transmission and distribution network.
OVERVIEW:
Montenegro is a small mountainous country located in Southeast Europe on the Balkan Peninsula, with a coastline at the Adriatic Sea. Montenegro covers an area of 13,812 km². The country has a population of 622,000 people (in 2015). The nation’s capital is Podgorica. The official language is Montenegrin. A spoken language is the Serbo-Croatian dialect, and recognized regional languages are Serbian, Bosnian, Albanian, and Croatian.
The currency in Montenegro is the Euro, even though Montenegro is a region outside the European Union and the euro area.
ENERGY:
The majority of electricity in Montenegro is produced at the Pljevlja coal-fired Thermal Power Plant, and the Perucica and Piva Hydropower Plants. The most important development project in the transmission system was the construction of a one-way underwater electricity cable to export power to Italy. Due to its sound geographical position, Montenegro is “rich” in solar radiation. Areas which enjoy the highest solar radiation are located in southern Montenegro (particularly the area around the cities of Bar and Ulcinj) and in the area around the capital city of Podgorica. There is also a growing interest in renting state-owned land for construction of on-ground installed solar power plants. Two wind farms in Montenegro – Krnovo, with a capacity of 72MWh; and Mozura, with a capacity of 46MWh – are currently in operation.
In late 2013, Montenegro invited international oil and gas companies to bid on exploration licenses for offshore blocks based on seismic data which showed favorable conditions for hydrocarbon deposits off of Montenegro’s deep-water coast. Montenegro does not currently possess the gas distribution network or the necessary technology to produce oil or gas, which may represent an investment opportunity. In March 2020, the Minister of Economy announced the government’s intention to begin importing U.S. liquefied natural gas (LNG) via the Port of Bar.
RELIEF:
The terrain of Montenegro ranges from high mountains along its borders with Kosovo and Albania, through a segment of the Karst region of the western Balkan Peninsula, to a narrow coastal plain that is only 2 to 6 km wide. The high mountains of Montenegro include some of the most rugged terrain in Europe and average more than 2,000 metres in elevation. The country’s highest point is Bobotov Peak in the Durmitor Mountains, which reaches 2,522 metres.
The lowest segment is in the valley of the Zeta River, which is at about 450 metres. The river occupies the centre of Nikšić Polje, a flat-floored, elongated depression typical of karstic regions, as is the predominantly limestone underlying rock, which dissolves to form sinkholes and underground caves.
CLIMATE:
Montenegro’s lower areas along the coast have Mediterranean climate, with dry summers and mild, rainy winters. Temperature varies greatly with elevation. Montenegro’s mountainous regions receive some of the highest amounts of rainfall in Europe (5,100 mm in Crkvice, above the Gulf of Kotor). Annual precipitation is about 1723 mm. Precipitation occurs principally during the cold part of the year (October-February). Upcountry the climate is continental with hot, dry summers and autumns with relatively cold winters with heavy snowfalls inland. The yearly sunshine hours are approximately 2,435.
ECONOMY:
Although the country is endowed with only limited areas of suitable soil and climate, farming dominated Montenegro’s economy until the mid-20th century. Less than one-tenth of the land is farmed, and about two-fifths of this is devoted to grains. In upland areas the principal agricultural activity is sheepherding. With woodlands covering more than two-fifths of Montenegro, forestry is economically important. Despite the country’s significant seacoast, commercial fishing is negligible.
Montenegro’s economy is transitioning to a market system. Around 90% of Montenegrin state-owned companies have been privatized, including 100% of banking, telecommunications, and oil distribution. Tourism, which accounts for more than 20% of Montenegro’s GDP, brings in three times as many visitors as Montenegro’s total population every year. Several new luxury tourism complexes are in various stages of development along the coast, and a number are being offered in connection with nearby boating and yachting facilities. In addition to tourism, energy and agriculture are considered two distinct pillars of the economy.
About one-tenth of Montenegro’s manufacturing labour force is employed in the steelworks at Nikšić. But Podgorica, where agricultural products (including tobacco) are processed, provides even more manufacturing jobs. Because of the small numbers of non-agricultural workers, labour union activity is minor and local.
The unemployment rate: 15.82% (2019 est.)
TRANSPORT NETWORK:
The completion of the long-planned route between Bar and Belgrade in 1976 extended Montenegro’s rail lines considerably. About three-fifths of the country’s roads are classified as modern. The country’s sole maritime port is the small community of Bar.