The purpose of this Master Thesis is to analyze the Montenegrin renewable energy market with its actual and future potential and the countrys 2020 energy and climate target assessment. Furthermore this market will be evaluated in accordance with national policies and investment opportunities as well as the European perspective. Also the countrys competitiveness of proposed support systems for RES will be elaborated under the framework of the Energy Community and EU agenda. Three types of RES are analyzed with regard to their potential, long run generation costs, their current situation of implementation (status quo analysis) and their proposed support schemes. These types are hydropower, wind energy and biomass. Solar thermal energy, municipal solid waste and biofuels are also discussed with regard to their potential, availability and prospect. The above gained information will be compared with the Hungarian RES market according to the study of "Renewable Energy Industry Roadmap for Hungary" and results will be elaborated in accordance with implemented policies and proposals for future provisions The conclusion of this study determines, that the country has a promising potential for renewable energy, but does not apply it effectively nor sustainably. However, the country is still far away from having implemented accurate renewable energy policies and frameworks and lacks of a profound strategy to attract foreign and local investment. This fact also gives some profound arguments that privatization of State assets goes sometimes hand in hand with corruption. A typical example is tender procedures which were several times cancelled or were won by the second or third best offer. In the moment the country follows a strategy of selling off its energy producing infrastructure to international investors and does not seriously focus on implementing support schemes for decentralized RES for solar or biomass by example. These energy sources could definitely boost the production of green energy. The availability of reliable statistics is another problem as well as a certain lack of political commitment towards the privatized aluminum smelter KAP. This smelter inhabits a predominant share in final energy consumption of 40% and demands a final solution and decision by the Montenegrin Government. In officially presented statistics for the EU 2020 energy goal proposals, the government prefers to offer 2 scenarios, namely one with KAP and one without KAP, which cannot be an acceptable solution in the long run. Also the inability to correctly evaluate the inbound tourism in strategy papers for future energy consumption and supply is a main deficit in all official documents and statistics. The current peak season of 3 months receives approximately an additional one third of the Montenegrin population in terms of tourists and it is planned that this number will be almost 5 times more compared to 2010 figures. None of the governmental statistics is dealing with this very important fact, because these peak times need to be considered and evaluated in the countrys future energy strategy.