The project aimed at facilitating the development of a market for biomass and supporting the sustainable use of biomass for district heating in 10 cities of Montenegro. The main focus of the investment programme was on conversion to locally produced and supplied biomass, improved energy efficiency, reduced air pollution from current coal-fired heat generation, and better quality of services for the provision of heat and hot water.The Study was primarily aimed at developing biomass-fired DH systems in selected municipalities in Montenegro, with or without the mini-CHP options, and was expected to explore in detail the potential of biomass supply, logistics, broad technical design/operational parameters such as plant sizing, and heat delivery network, and also to identify the costs and benefits, environmental improvements and prospective funding/implementation arrangements.