Preparations for serious projects in the Montenegrin energy sector

By Adnan Prekic – Podgorica

Within the regular reporting on the implementation of Montenegro’s priority development projects, the Government of Montenegro adopted information on the construction of small hydro power plants. Contracts on concession award to exploit 21 water stream, which have been signed, envisage the construction of 41 small hydro power plants with total installed power of about 73 MW and annual production of about 147 GWh.The total investment is valued at EUR 109 million.

The Government also discussed the implementation of the agreement on land lease and construction of the Krnovo wind power plant. The investor has already made an investment, but, given the project requires additional EUR 100 to 120 million, it has begun negotiations on the project finance construction with the European Bank for Reconstruction and Development and the German Development Bank.

The government earlier signed the license for the construction of wind farms at two locations in Montenegro, where more than 50 wind farms are going to be built. Investors who are willing to invest in renewable energy have prepared the complete documentation, and now with the permission of the montenegrin government they can begin preparatory work for the construction of wind farms. Two wind farm will be build with 52 wind turbines that will produce 120 MW of electricity, which will be sufficient to supply about 40,000 households. Although the lease agreements for building the wind farms were signed four years ago, the conditions for the construction of these facilities have only now been created. The total value of both projects is more than EUR 150 million, with the first construction work expected to start in two months. For the first 12 years of service the purchase price of electricity produced in this way will be guaranteed.

In the final stage are also the preparations for the construction of the second block of the thermal power plant “Pljevlja”. The Government’s call for the construction of the second block was answered by the companies: Czech company “Skoda Praha”, two Chinese companies – “Powerchina Hubei Electric Power Survey & Design Institute”, “China Machinery Engineering Corporation” and the Slovak company “Istroenergo Group”. The construction of the second block of thermal power plants will achieve a strategic objective in the field of energy in Montenegro, which is the energy independence of the country, the improvement of the security of supply to consumers, as well as the improvement of the stability and sustainability of the power system in Montenegro, which will position the country as an exporter of electric energy.

With the construction of the new energy facilities, the Montenegrin government plans to achieve its strategic objectives in the energy sector. These are the energy independence of the country, the elimination of the deficit of electricity, the improvement of the safety of supplying consumers and the improvement of the stability and sustainability of the power system in Montenegro. It is expected that after the construction of the second block, and several small hydropower projects and wind farms, the total montenegrin thermal power production will be 4,800 GWh or 50% higher than that is now.

Source: Independent Balkan News Agency (Montenegro)