Montenegro sets ceiling price of €65/MWh for first solar auction

Montenegro has set a ceiling price of €65 ($76.11)/MWh for its first solar auction, which will offer 12-year contracts for difference (CfD) for up to 250 MW of capacity. The auction is scheduled to take place later this year.

The government of Montenegro has set the conditions for the country’s first solar auction.

The auction will accept bids for solar projects with a minimum capacity of 400 kW, offering up to 250 MW of total capacity. It is the first in a planned series of market premium auctions targeting 400 MW of new solar and wind capacity.

The government has set a ceiling price of €65/MWh for the auction. Winners will be those that propose the lowest strike price and will be awarded a 12-year contract for difference.

The auction also features a clause that allows its quota to be extended by up to 20%, or 50 MW, to facilitate bids that are similarly ranked. It is anticipated the auction will open by the third quarter of this year.

Montenegro’s cumulative solar capacity reached 30 MW by the end of 2024, up from 17 MW at the end of the year prior, according to figures from the International Renewable Energy Agency (IRENA).

The country has set a target of a 50% renewable energy share in final consumption and a 70% renewable energy share in electricity production by the end of the decade.