Pleshanovskaya solar park in Russia (Photo: Fortum)
The first phase of works on a solar power plant with an installed capacity of 250 MW on the Briska Gora locality near Ulcinj, Montenegro will begin in 2020 and last 18 months, state power utility Elektroprivreda Crne Gore (EPCG) CEO Igor Noveljić has said.
In a statement to Vijesti, Noveljić said that he expects the solar park’s electricity output could start in late 2021. The establishment of a Montenegro-based special purpose vehicle (SPV), which will be in charge of the project worth over EUR 200 million, is in a final phase, he added.
The SPV will be co-owned by the consortium that placed a winning bid to build the solar power plant: Finland’s Fortum and EPCG will control 49% each, with Sterling & Wilson to hold a 2% stake. The solar park is planned to produce around 450 GWh of electricity annually following the second phase of the project.
The project is worth more than EUR 200 million
Around EUR 45 million of the total project value refers to the first phase, including the procurement of solar panels and the overall design, procurement, and installation of equipment and works envisaged under the agreement, Noveljić said. The value of the investment in the power transmission system, including the construction of the Bar 2 substation, is estimated at some EUR 30 million.
“EPCG, the state, the local government, domestic companies, and consumers will see multiple benefits from the project. In the first 25 years of operation, the investor will pay over EUR 50 million in land lease fees alone to the state budget, not counting all other envisaged fees, taxes, and expenses, of which a significant portion will flow to the municipal coffers,” said Noveljić.
Following both phases of the project, a total of 226 people will be employed, while up to 1,000 workers are expected to be hired during construction, with local firms to be contracted for around EUR 20 million worth of works.
The agreement on land lease and the construction of the 250-MW-plus solar power plant was signed by the state and the consortium comprising EPCG, Fortum, and energy performance contracting (EPC) service provider Sterling & Wilson in late 2018.
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