Montenegro Opens a Second Grant Window for Hotel Energy Efficiency

The government of Montenegro has adopted a programme that adds €500,000 in non-repayable funding for energy-efficiency investments in hotels. The scheme is a continuation of an initiative approved in May 2024 and financed from the EU's IPA III instrument through the European Commission's direct budget support package for the energy crisis. The Eco-fund will again act as the implementing body, and the same co-financing model applies: up to 70 percent of an eligible investment can be covered by the grant, while the hotel must provide at least 30 percent from its own resources.

The first phase had a total allocation of €3 million, of which €2.7 million was set aside for subsidies and €300,000 for programme management and promotion. A public call supported 15 hotels, with approved subsidies totalling €2,171,573. Individual grants ranged from €60,000 to €200,000 and were used for photovoltaic systems, solar collectors, modernised heating and cooling, improved thermal envelopes and upgraded refrigeration systems.

The new call is smaller in scale: €500,000 is allocated, at least ten hotels are expected to be supported, and the maximum grant per applicant is capped at €50,000. To qualify, a hotel must be registered in Montenegro's Central Register of Business Entities, hold approval for hotel-type hospitality activity, and have a positive financial report for 2025. Hotels that received support in the first phase may apply again, but only for activities that were not previously funded.

Eligible measures include building-envelope improvements, high-efficiency heating and cooling such as heat pumps and pellet boilers, solar water-heating, efficient LED lighting, refrigeration modernisation, building-management systems, and employee training linked to EN ISO 50001. Funding cannot be used for second-hand equipment, vehicles, equipment rental or cash withdrawals.

What the €50,000 Cap and Eko-fond Selection Rules Mean for Hotels

What the €50,000 ceiling changes for individual hotels

The first phase allowed grants of up to €200,000 per project, so some hotels could fund deep retrofits. The new cap of €50,000 will push most projects toward smaller, high-impact measures such as LED lighting, solar water heating, building-management software or staff training, rather than full thermal-envelope overhauls. At the stated 70 percent co-financing rate, a €50,000 grant corresponds to roughly €71,400 in total eligible project cost, meaning larger projects will need additional finance beyond the minimum 30 percent self-participation.

Eko-fond's criteria signal a broader policy intent

The selection process will consider a hotel's geographic location, whether it operates year-round, the share of women in its management structure, and whether it has already received support under the earlier phase. That combination suggests the government is using the grants not only to cut energy use but also to spread benefits across the country, support hotels that operate outside the summer season, and encourage gender diversity in management. The documents do not state how heavily each criterion will be weighted, so applicants should treat them as qualifying and scoring factors rather than guarantees.

Why this is an energy retrofit story, not just tourism support

The programme's justification goes beyond hospitality costs. EU buildings are cited as responsible for 40 percent of total energy consumption and 36 percent of greenhouse-gas emissions, and 85 to 95 percent of the existing building stock is expected to remain in use after 2050. In Montenegro, where tourism contributed 30.9 percent of GDP in 2019, lowering hotel energy costs is a direct competitiveness measure: it can reduce operating expenses, improve service quality and gradually align older hotel buildings with EU energy-performance norms.

What Montenegrin Hotel Operators Should Prepare Before the Call

  • Prepare the three eligibility documents now: Montenegro Central Register hotel registration, a hotel activity approval, and a positive financial report for 2025 will be required when Eko-fond opens the call.
  • Design projects around the €50,000 grant ceiling. At 70 percent co-financing, that supports about €71,400 in total investment; larger works will require additional own or borrowed funds.
  • Use the published eligible-measures list to build the application: thermal envelope improvements, heat pumps or pellet boilers, solar water-heating, LED lighting, refrigeration modernisation, building-management systems, and EN ISO 50001-related staff training. Second-hand equipment, vehicles, rentals and cash withdrawals are excluded.
  • If you were a first-phase beneficiary, separate previously funded measures from new ones. The new call allows returning hotels to apply only for activities that were not supported earlier.
  • Plan for a 12-month implementation window. Selected projects must be completed within 12 months of contract signature, so confirming supplier capacity and the remaining 30 percent financing before applying reduces execution risk.

Risk & Opportunity Assessment

Commercial RiskLowGrants are non-repayable and capped at €50,000 per hotel, limiting direct financial exposure; the main commercial downside is the required minimum 30 percent self-financing if energy savings fall short of expectations.
Competitive RiskMediumHotels that secure grants for heat pumps, solar water heating, LED lighting or building-management systems can reduce operating costs relative to non-funded competitors, especially because year-round operation is one of Eko-fond's selection criteria.
Regulatory RiskLowThe programme has clear eligibility and spending restrictions—hotel approval, positive 2025 financial report, no used equipment, vehicles, rentals or cash withdrawals—so the main regulatory risk is failing Eko-fond's administrative or technical evaluation or missing the 12-month delivery deadline.
Reputation RiskLowSuccessful completion of publicly co-funded energy measures and EN ISO 50001-related training can strengthen a hotel's standing with EU-backed programmes, while non-completion within the contractual period could weaken future applications.
Technology DisruptionMediumSupported building-management systems, heat pumps and solar installations may shift baseline expectations for energy management in Montenegrin hotels, but the effect is limited by the small number of projects and €500,000 total envelope.
Commercial OpportunityHighEligible hotels can access up to €50,000 in non-repayable funding for energy upgrades, reducing operating costs and improving asset quality; suppliers of the listed technologies gain a publicly co-financed demand pipeline.