Key Objectives of the Program

The primary objective of the Program for Encouraging Innovations in Energy Efficiency in Industry is to increase energy efficiency and/or the use of available renewable energy sources by SMEs in the manufacturing industry through the introduction of innovative technologies.
The specific goals or outcomes expected three years after project completion are as follows:
a) Improved business operations of SMEs in the manufacturing industry by introducing digital solutions that contribute to enhanced energy management;
b) Improved energy management by SMEs in the manufacturing industry; and
c) Strengthening the capacity of SMEs’ staff in the manufacturing industry to manage energy efficiency and/or use renewable/clean energy sources.

Funding

• The total value of the Program is €2,300,000.
• The minimum grant amount is €50,000, and the maximum is €200,000.
• The maximum intensity of de minimis aid granted is up to 80% of eligible costs. The applicant must secure the remaining project co-financing from their own sources.

Project Duration
The implementation period for selected projects is a minimum of 6 and a maximum of 24 months.

Eligibility Criteria
Eligible to participate in the Program are SMEs whose primary business activity is registered in the manufacturing industry sector in the Central Register of Business Entities no later than December 31, 2022, and for which the following apply:

• Operate 100% under private ownership and are headquartered in Montenegro;
• Have a positive financial statement (Income Statement) for the previous fiscal year;
• Regularly fulfill obligations related to the payment of taxes and contributions on personal income, corporate profit tax, and value-added tax, or have rescheduled tax obligations that are being regularly serviced;
• In cases where the company and its founders hold more than 20% ownership in another entity, both companies cannot apply;
• No criminal record exists for the legal entity, and the responsible person within the legal entity is not listed in the Ministry of Justice’s criminal records;
• Are not under obligation to repay unlawfully received state aid.

Note: Business entities that signed Grant Agreements with the Innovation Fund of Montenegro based on the Public Call for participation in the Program for Encouraging Innovations in Energy Efficiency in Industry, announced on September 22, 2023, are not eligible to participate in the 2024 Program.

Eligible Activities
Projects must include the implementation of activities from all three listed components:

1. Procurement and installation of equipment that contributes to improving energy efficiency and/or using renewable/clean energy sources;
2. Implementation of smart/digital solutions that ensure energy consumption monitoring and optimize production processes through improved machine and technical system management; and
3. Appropriate capacity building of professional staff in the area of energy management and consumption optimization and/or introduction of the energy management standard EN ISO 50001.

Ineligible Activities
Program funds cannot be used for:

• Procurement of used equipment;
• Procurement of passenger, cargo, and commercial vehicles;
• Renting equipment, tools, and materials;
• Cash withdrawals from the project account.

Costs
Eligible direct costs include:

1. Wage costs (gross 2) for newly hired professionals who will work on energy management, engaged full-time under an employment contract;
2. Costs of procurement and installation of equipment and implementation of smart/digital solutions necessary for project realization;
3. Costs of adaptation or reconstruction of space to ensure appropriate conditions for the equipment procured within the project;
4. Costs of consultancy services for preparing technical documentation required for the reconstruction of space;
5. Costs of regular service and maintenance of the equipment purchased within the project;
6. Training costs for the staff of the Program Beneficiary on energy management tasks;
7. Value-added tax (VAT), only if the Program Beneficiary cannot reclaim VAT for any reason.

Eligible indirect costs: costs of space maintenance, overhead costs, costs related to equipment procurement, and minor inventory costs.

Decision-Making Process
The following steps are taken during the review of applications and the final decision-making process:

1. Administrative verification of project proposals;
2. Evaluation of project proposals against selection criteria (two rounds);
3. Final Decision on approval/rejection of the project for co-financing.

Public Call Duration
October 1 – November 11, 2024