Ljubiša Bošković, Founder and Director of the company “Sistem – mne”
The interviewee for “Diplomacy & Commerce Montenegro” magazine, Ljubiša Bošković, founder and director of the company “Sistem – mne”, is recognized as a pioneer in the field of renewable energy in Montenegro. In this interview, Bošković discusses the potential of solar energy in Montenegro, the challenges in developing the electricity sector, and the importance of maintaining a sustainable balance between economic growth and environmental protection.
Mr. Bošković, to what extent can solar energy serve as a productive resource for Montenegro, and are investments in the Montenegrin electricity distribution system necessary to fully capitalize on this energy?
With global societal development, including Montenegro and neighboring countries, the demand for electricity distribution increases, and, naturally, production capacities are constantly being expanded. It is crucial to make additional investments in the electricity distribution system. However, no matter how much the system expands, it is essential to recognize that the electricity distribution system has its limitations, particularly in certain locations. In this context, solar energy, which is connected to the electricity distribution system, i.e., to the 35/10 network or the lower 04 network, can represent a significant resource for Montenegro. Given the recent changes in the law regulating this area, there have been adjustments at the point of connection, as well as the implementation of On-Grid solar power plants on land. These developments greatly contribute to improving supply, especially in areas served by long, radial lines of the electricity distribution network.
Considering the growing interest among the population in Montenegro for installing solar panels, can you share how citizens can calculate their cost-effectiveness to make an informed decision?
Until now, citizens were only consumers. However, the new law allows them to also become producers of electricity through photovoltaic systems, i.e., small solar power plants installed on residential rooftops. Each property has one or more meters, and all meters have a limited connection capacity. The sum of one or more meters determines the total installed capacity of the future solar system that residents can install on their rooftops. Undoubtedly, planning a rooftop solar power plant may face certain limitations, such as an unsuitable roof orientation (if it is not south-facing) or unfavorable microclimatic conditions at a given location. Another limitation is that for some properties, which are higher electricity consumers, the roof size may be too small to fully meet and cover annual electricity consumption with production. I would emphasize that there are various cases, and each home is unique. Therefore, for each household, it is necessary to conduct a specific calculation on an annual basis to determine the required installed capacity, ensuring it does not exceed the allowable connection capacity. In any case, if it is determined that a household’s annual electricity consumption can be met by installing a solar power plant with a specific installed capacity, citizens gain a significant advantage. However, it is difficult for citizens to independently calculate the ratio of produced to consumed electricity, as it is never possible to determine this with absolute accuracy. They will inevitably need the assistance of licensed engineers, whose job is to perform such calculations. I can say that this type of investment is economically viable within a period of six to eight years. Additionally, to make an informed decision about installing solar panels in their homes, I advise citizens to consult professionals, i.e., companies specialized in this field.
Given the noticeable trend of creating solar farms in rural areas of Montenegro, which are predominantly used for various agricultural activities, could you share whether it is possible to establish a positive relationship between these two industries?
Solar farms in rural areas of Montenegro can be constructed, as outlined in the Regulation on the Construction of Solar Power Plants. In Montenegro, it is strictly prohibited to install ground-mounted solar power plants on land classified as first to fourth-grade agricultural land. This measure, implemented by the Ministry of Agriculture, Forestry, and Water Management, protects agricultural land. Consequently, it is impossible to receive approval if the micro-location where the solar plant is planned falls within this classification of land. In Montenegro, solar power plants can only be built on land classified as fifth, sixth, seventh, or eighth-grade, or on infertile areas that are not agricultural land or forests of the first, second, third, or fourth category. This classification and policy by the Ministry have indeed established a positive relationship between the two sectors. However, I would emphasize that this decision by the relevant Ministry is highly unfavorable for investors, considering that neighboring countries allow solar power plants to be built on agricultural land. If a solar power plant is constructed on agricultural land or in flat areas, the capital expenditure (CapEx) costs are significantly lower compared to Montenegro. Here, investors must first spend substantial funds to prepare such classified land for construction. For example, significant costs are incurred when drilling holes in such terrain, which is challenging to work with, and investments can be burdened with additional expenses of €150,000 to €200,000 per megawatt peak. This makes projects significantly more expensive than in neighboring countries. Nonetheless, this situation does not deter investors from proceeding with projects. We can already see that numerous solar power plants around the capital city and other locations are nearing completion. Therefore, a relationship has already been established between these two industries, with both able to coexist without interfering with one another.
Is the business environment in Montenegro conducive to the development of your industry, and where do you see room for improvement?
I do not see any specific incentives for the development of this industry in Montenegro. However, there is certainly room for improvement. With 21 years of experience, I can confidently say that we are considered pioneers in the field of renewable energy in Montenegro. We have truly navigated a challenging path, moving from wind to wires, sun to wires, and water to wires. I believe all these processes could be significantly accelerated. However, I have noticed that, in recent times, numerous non-governmental organizations and civic initiatives have emerged that oppose every form of economic progress in Montenegro, including advancements in the energy sector. Personally, I am not an advocate for Montenegro importing electricity; rather, I believe the country should be entirely self-sufficient in the energy sector. Decades of experience show me that Montenegro has this potential, whether it is through water, wind, or solar energy in certain locations. In any case, the environment for any investment in Montenegro, especially in the energy sector, is not always properly assessed. Unfortunately, there is little focus on developmental prospects, with more attention given to the potential environmental impact of a project’s implementation. That, of course, is not the goal! Environmental protection is high on the agenda for all of us working in the energy sector. Therefore, we do not share such views, and I firmly believe that the development of electricity production is the future, both for Montenegro and for all countries in the region