Montenegro

Public-private partnership for energy efficiency and sustainable development

A Memorandum of Understanding on this partnership between the UNDP, the Promonte and the Hypo Group Alpe Adria was signed by Mr. Garret Tankosić Kelly, UNDP Resident Representative a.i./UN Interagency Focal Point in Montenegro; Mr. Kare S. Gustad, Promonte Chief Executive Officer and Mr. Christian Toeltl, Director-General of Hypo Alpe-Adria-Bank AD Podgorica, in the presence of H.E. Mr. Branimir Gvozdenović, Minister of Economic Development of Montenegro and Mr. Nemanja Boljević, Board Member of the Hypo Alpe-Adria Leasing DOO Podgorica.

„The industry and business sector in Montenegro (excluding metallurgy and associated services), consumes  some 21,5 % of the total energy supply. When you consider that any private sector firm who implemented energy efficiency measures in their offices and plant could expect up to savings of up to 30% in their energy bills, (through introduction of the higher standards of insulation and upgrading or extending the heating system, etc.) that is a big saving for a business,“ Mr. Garret Tankosić Kelly, UNDP Resident Representative a.i./UN Interagency Focal Point in Montenegro said. „Imagine then if the entire sector was to save 30% on its energy bill, not only would the total demand for energy in Montenegro be reduced by approximately 7% but many jobs would be created in the energy efficiency industry. So, business has this enormous potential to become not just an engine for economic growth but, by using its wealth in a socially responsible and environmentally effective manner, to become champions of sustainable growth.“

“In partnership with these private sector champions  UNDP has agreed to provide energy audits which will highlight how much energy these companies spend in their premises and where the potential areas for saving are. The audit would also show how much energy efficiency measures would cost and how long the pay back period on the investment would be. Typically the return on energy efficiency investments have a return measured in 3 to 5 years depending on the audit results, which is good news for institutions for whom the “bottom line” is a key success criteria,” Mr. Tankosić Kelly also emphasized. “From a sustainability perspective the EBRD  have shown that from a purely economic perspective saving a kilowatt of energy is several a thousand to ten thousand times more cost effective than paying for the generation of a new  kilowatt of energy. Not to mention the positive impact of energy saving on the local environment as well as mitigating the growing threat of climate change to the global environment. As they say in business this is a win/win/win scenario for Montenegro, the Private sector and for Energy efficiency.  A lead which we invite other private sector companies will follow,” Mr. Tankosić Kelly concluded.

Branimir Gvozdenović, Minister for Economic Development of Montenegro expressed satisfaction with the newly established partnership. He also reminded that the Government had adopted the National Energy Development Strategy last December, which establishes measures for setting of a stable electricity supply for the consumers. Minister Gvozdenović said that the Government had identified energy efficiency as their priority, due to the fact that these projects give substantial results fast, even though their realisation requires great investments. “Building of an energy facility takes several years, while we can begin with energy efficiency straight away,” said Minister Gvozdenović. He also added that the Ministry for Economic Development is satisfied with the activities of the Electric Power Company of Montenegro in reducing great losses. “The losses are at the moment less than 20 percent, but it is necessary to continue to work in order to further reduce them year after year,” Minister Gvozdenović emphasized, adding that the Ministry has prepared a strategy of energy efficiency which is already being enforced, and donors are ready to get themselves involved in the related activities: World Bank, Norwegean Government, European Agency for Reconstruction, KfW Bankengruppe, UNDP, GTZ. “Our Energy Consumption Plan says that the energy consumption on annual level until 2025 should be around 6.000 GWh, if all the planned energy efficiency measures applied. If not, then our energy consumption would be 16% bigger, which almost equals the production of Perućica Hydro Power Plant, and that is why it is so important that we are all aware of the importance of these initiatives,” said Minister Gvozdenović. 

“Promonte is focusing very much on our role of being a good and responsible corporate citizen. Our mother company Telenor and Promonte have very high ambitions in this area.  This includes also environmetal protection and activites related to reduction of global warming,” said Mr. Kare S. Gustad, Promonte Chief Executive Officer. “In this context I am proud to mention that Telenor was ranked the best Mobile Telecom company world-wide in the Sustainability Yearbook 2008. This number one position is the result of systematic work and long term commitment within what is referred to as Corporate Social Responsibility activities. During our 12 years of operations here we have contributed a lot in several areas in supporting the society at large. Today Promonte wants to be in the forefront in Telenor’s Climate programme. As a provider of telecommunication services we are not among the heavy polluters. However, we want to reduce emissions of carbon dioxide (CO2) from our activities by increasing the energy efficiency of our network installations and office buildings. Telenor has already lauched a comprehensive global programme in all affiliates to put this into effect. We also want to influence our employees and other stakeholders to have focus on this. Furthermore, it is important to be a good example to follow for our surroundings and clearly demonstrate that efficient use of telecom services will save energy and reduce pollution.”

“Being a telecom company, we also will highlight the fact that efficient use of modern telecommunications services can shrink distances between people and reduce unnecessary traveling. I hope that our common project will stimulate individuals and companies in Montenegro to focus more on environmental and climate change issues. I believe that a forceful joint effort over time will give positive result. This is also very much about mentality and mindset,” said also Mr. Gustad. “Finally, I underline that Promonte would like to see Montenegro as a very attractive country for its own inhabitants as well as for tourists. We therefore need to take seriously all types of environmental issues – including recirculation and waste handling. Allow me therefore to say: let us go for a cleaner  Montenegro in the widest context.”

Mr. Christian Toeltl, Director-General of Hypo Alpe-Adria-Bank AD Podgorica said: “Hypo Group Alpe Adria has a longstanding commitment in providing contributions to reduction of global climate change impact. Especially, our Group is active in the field of renewable energy, where in partnership with EIB (European Investment Bank) it is implementing a project worth of 100 million euros. Hypo Group Alpe Adria, as a quite young actor on Montenegrin market, since the very beginning of its operations, has been involved in the sustainable development policy matters through the membership in the National Council for Sustainable Development.”