Montenegro Prepares for European Market Integration with Italy by 2027

The Montenegrin Power Exchange (MEPX) is making significant strides toward coupling its electricity market with Italy’s, projected for completion by 2027. Dejan Drašković, CEO of MEPX, announced the initiative at the Energy Week Western Balkans 2024, noting that this step would open new opportunities for cross-border trading and improve liquidity within Montenegro’s relatively small market. By linking with Italy, Montenegro aims to access the larger European power market, providing increased security and stability for investors and energy producers in the region. 

Market coupling is a crucial component of energy integration in the Balkans, where fragmented national markets often lack the depth and liquidity needed to attract large-scale investments. Montenegro’s small population and limited energy demand have historically constrained its market, but access to Italy’s market could transform Montenegro into a central hub for regional energy trading. This shift could also support the growth of renewable energy, as coupling brings more stable pricing and reduces financial risk for developers. 

However, challenges remain, especially around grid upgrades and regulatory alignment, which are essential for full integration. Drašković highlighted ongoing efforts to enhance Montenegro’s grid infrastructure and align its regulatory framework with EU standards. The move underscores Montenegro’s ambition to accelerate renewable energy adoption by offering developers and financiers a more attractive, interconnected market that mitigates risk and enhances returns.