Electricity

Montenegro’s EPCG ready for reconstruction of TPP Pljevlja despite jump in costs

Montenegro EPCG ready reconstruction TPP Pljevlja jump costs

Photo: EPCG

Published

October 22, 2021

Country

Comments

0

Share

Published:

October 22, 2021

Country:

Comments:

0

Share

Montenegro’s state-owned power utility EPCG says preparatory works are almost complete for the ecological construction of thermal power plant Pljevlja, adding that the project is necessary to prevent massive imports of electricity. The contractors demand EUR 15 million more than what was initially agreed.

If Montenegro’s only coal-fired thermal power plant went offline, the country would have to import 1.5 TWh of electricity on an annual basis, currently worth EUR 200 million, or up to EUR 1 million per day, according to government-controlled utility Elektroprivreda Crne Gore (EPCG). The company said the preparations for the so-called ecological reconstruction of the 225 MW TPP Pljevlja are near completion and that it would begin soon.

The country has vowed to abandon coal by 2035 but Prime Minister Zdravko Krivokapić estimated the Pljevlja facility is likely to be shut down by 2030. Montenegro is already in breach of its obligations within the Energy Community since December, when the thermal power plant spent the 20,000 working hours it was entitled to until it completely overhauls the plant.

Increase in reconstruction price is no problem

Furthermore, the consortium led by China’s Donfang Electric International Corp., which was picked in 2019 for the reconstruction, recently asked for EUR 15 million on top of the agreed price of EUR 54.4 million. EPCG’s Chief Executive Officer Nikola Rovčanin claims “it is not a problem” and that the stability of supply must be maintained.

The company would suffer an annual loss if TPP Pljevlja’s pauses its operations for 15 days, he said and cited an unexpectedly low level of water in the reservoirs of its hydropower plants. Rovčanin pointed out that the reconstruction would last three and a half years and that the facility would be switched off for several months. All the currently planned energy capacities would have total output of 1.5 TWh, he said.

TPP Pljevlja to be brought in line with EU rules, CEO claims

The project will boost efficiency to 31% and cut emissions to the required levels, according to the CEO. The thermal power plant needs to operate at least until 2035 “or maybe longer,” Rovčanin stressed. The ecological reconstruction will also benefit the employees in the coal complex, “who cannot in any way feel the negative consequences of the energy transition,” he asserted.

Rovčanin said EPCG already paid EUR 17 million in total to the consortium.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Electricity prices for firms in Serbia to be lower from May 1 EPS dusan zivkovic

Electricity prices for firms in Serbia to be lower from May 1 – EPS CEO

18 March 2024 - EPS and the Ministry of Mining and Energy are preparing a new methodology for calculating the price, Dušan Živković said

Slovenia launches low carbon hydrogen consortium

Slovenia launches low-carbon hydrogen consortium

18 March 2024 - Slovenia supported the establishment of a low-carbon hydrogen consortium of 18 companies, organizations and municipalities

Bulgaria-battery-storage-subsidies-renewable-energy

Bulgaria opens calls for battery storage subsidies within renewable energy projects

18 March 2024 - Bulgaria earmarked EUR 273 million in subsidies for battery systems required to be installed together with renewable electricity plants

EU Energy Communities legislation 2.0, an upwards trend, REScoop.eu

EU Energy Communities legislation 2.0: an upwards trend

18 March 2024 - REScoop.eu is the European federation of citizen energy cooperatives and he plays a vital role in the introduction of two definitions for energy communities in the context of the Clean Energy Package