Montenegro’s new national climate strategy places the planned shutdown of the Pljevlja coal-fired power plant by 2035 at the center of the country’s long-term decarbonisation pathway, marking the most significant structural shift yet in the country’s energy policy. The strategy outlines a broad package of policies and sectoral reforms aimed at gradually reducing greenhouse-gas emissions across the economy and aligning Montenegro with European climate objectives.
Despite progress in economic development since independence in 2006, Montenegro’s energy system continues to rely heavily on fossil fuels. Coal-based electricity generation remains particularly important for maintaining the stability of the national power system. Within this framework, the Pljevlja thermal power plant has long been the backbone of domestic electricity production, ensuring security of supply during periods of hydrological variability and limited renewable output.
At the same time, the plant represents the largest single source of greenhouse-gas emissions in the country. According to data referenced in the strategy, the facility accounted for around 43 percent of Montenegro’s total greenhouse-gas emissions in 2022, highlighting the scale of its environmental impact. The government therefore considers the eventual closure of the plant unavoidable if Montenegro is to achieve deep emissions reductions and move toward climate neutrality in the coming decades.
The strategic document frames the transition as a gradual process rather than an abrupt phase-out. Until alternative generation capacity is fully developed, Pljevlja will remain an essential stabilizing element of the national electricity system. Its eventual retirement by the end of 2035 is intended to coincide with accelerated investment in renewable energy infrastructure, particularly solar and wind power projects, which are expected to take on a growing share of electricity generation.
Energy transition policies outlined in the strategy extend well beyond the power sector. Transport, which represents another major source of emissions, is expected to undergo a major transformation through electrification and the deployment of zero-emission vehicles. The strategy envisions a long-term shift toward clean mobility, with a target that at least 90 percent of road vehicles could be zero-emission by 2050, alongside the complete electrification of Montenegro’s railway infrastructure by 2040.
The transition, however, presents significant economic and social challenges, particularly for the northern municipality of Pljevlja, where coal mining and electricity generation form the backbone of the local economy. Thousands of jobs and a substantial share of municipal revenues depend directly or indirectly on the coal sector. Recognizing these risks, the strategy calls for the development of a Just Transition Plan designed to support workers and communities affected by the eventual closure of the power plant and associated coal operations.
Beyond energy and transport, the strategy also emphasizes the role of land use and forestry in reducing emissions. Montenegro’s forest resources are described as an important carbon sink that could contribute to offsetting residual emissions. However, the document also notes that the long-term carbon-absorption capacity of forests remains uncertain due to climate change impacts such as droughts, floods, wildfires, and heat waves, which increasingly affect the country’s ecosystems.
The broader economic narrative underlying the strategy links climate policy with development opportunities. Investments in renewable energy, electrified transport, and low-carbon infrastructure are expected to stimulate new industrial activities and reduce dependence on imported fossil fuels. In the long term, Montenegro could potentially position itself as a producer and exporter of clean electricity within the regional energy market, particularly as neighbouring European countries accelerate their own decarbonisation strategies.
Nevertheless, the transition will require careful balancing of environmental objectives with energy security. Until new renewable capacity and grid infrastructure are sufficiently expanded, the Pljevlja plant remains a critical pillar of Montenegro’s electricity system. The government’s plan therefore envisages a phased approach in which renewable projects gradually replace coal generation while maintaining system stability and avoiding electricity shortages.
In practical terms, the 2035 closure target signals a strategic shift in Montenegro’s energy policy toward a post-coal electricity system. Achieving this objective will depend on the pace of renewable deployment, investment in grid modernization, and the successful implementation of social transition measures for coal-dependent regions.
The strategy ultimately frames the transition not only as an environmental necessity but also as an opportunity to modernize Montenegro’s economy and integrate more closely with European energy and climate policies. If implemented effectively, the planned retirement of the Pljevlja coal plant could mark the beginning of a broader transformation of the country’s energy system, reshaping both its power generation mix and its economic development model in the decades ahead.
