Šahmanović: Montenegro is facing its most challenging year for energy sector

Montenegro is facing its most challenging year for the energy sector, Minister of Energy and Mining Admir Šahmanović stressed.

State-owned power utility Elektroprivreda Crne Gore (EPCG) is recording a loss of around EUR 80 million due to the outage of the Pljevlja coal power plant, while electricity consumption is rising due to the price increase of other energy sources, Admir Šahmanović told to TV Vijesti.

He explained that the development points include the reconstruction of the thermal power plant, addressing delays in connecting solar power plants, and plans for new projects, such as cooperation with the UAE, agreement with Italy on a second subsea cable line.

Šahmanović: We entered this year quite weakened

The priority will be price stability and increasing the use of renewable sources, along with strengthening Montenegro’s position as an energy hub between the region and the European Union, he added.

I can say that this year is perhaps the most challenging year for the energy sector in the modern history of Montenegro. We entered this year quite vulnerable because last year the hydrological conditions were the worst in the country’s history,” he asserted.

Šahmanović also added that the country has seen a 6% increase in electricity demand.

Climate change is playing its part

One of the reasons is the increase in the price of energy sources such as wood and coal, according to the minister.

He pointed to climate change as another factor. Now, there is a growing need to install air conditioning units even in northern Montenegro, where there was previously no need for such a thing, he added.

Therefore, in his words, the construction of other production facilities is inevitable.

Of note, Montenegro has been recording an increase in electricity consumption for the past several years.

In April, Jovan Kasalica, EPCG executive manager of the supply department in power utility Elektroprivreda Crne Gore (EPCG), said that electricity consumption in Montenegro has risen by 25% over the past four years.