Power Sector Policy Reform to Promote Small Hydropower Development in Montenegro project

Project Goal:
The project will support the Government of Montenegro in realizing its goal, in a most cost effective and economically and environmentally responsible manner, of 15 to 20 MW of new small generating capacity by the close of the project, instead of 2015 as declared by Small Hydro Development Strategy, through: a) streamlining and simplifying the application procedures for small renewable independent power producers; b) collecting basic data to make investment decisions; c) by setting attractive but competitive business terms and conditions for investors; and d) helping the new Energy Efficiency and Renewable Energy Unit role out a streamlined and transparent tendering process.

Project Components:

1. Institutional, legal and price conditions attracting investment in small hydro power

Output 1.1. Simplify tendering and authorisation procedures for small hydro-power producers
Output 1.2. Develop regulation for connection by small power producers to the power grid
Output 1.3. Development of financial incentive scheme for small hydro power development

2. IPP investment decisions in Small hydro power supported

Output 2.1. Hydrological data for additional 15 sites collected
Output 2.2. All available small hydro-site data collected and posted on web site

3. Small hydropower IPP concessions operational

Output 3.1. Design model tendering and contractual documents for SHPPs
Output 3.2. Train and organize unit in SHPP tendering and contracting process
Output 3.3. Tender and contract out the development 5 selected SHPP sites for power generation

4. Project results and lessons learnt summarized, documented and made publicly available

Output 4.1 Monitor construction and operation of small hydro power plants
Output 4.2 Identification, codification and dissemination of lessons learnt and best practices

Corporate thematic area/Relevant cross-cutting themes
Economy & Environment

Project status
Operational / running

Location
Podgorica, Montenegro

Project duration
2008 -  2012

UNDP Project Officer in charge
Programme Manager      
Ms. Snežana Marstijepović
snezana.marstijepovic@undp.org
UNDP Montenegro
Bul. Sv. Petra Cetinjskog 1A, 81 000 Podgorica
Tel. +382 20 22 55 33; Fax +382 20 22 55 51

Donors/Major sources of financing
Global Environment Facility (GEF) - $978,393
UNDP TRAC resources - $40,000
Total Project budget: $1,018,400

Partners
Ministry of Economy
Energy Regulatory Agency
Hydrometeorological Institute
Business community
Local governments

Delivery in previous fiscal years, until January 2012
$740,000.00

Interim results and evaluation reports
Midterm evaluation conducted and final report prepared