Montenegro’s EPCG signs contract for Kruševo hydropower project design

Government-controlled power utility Elektroprivreda Crne Gore and the Jaroslav Černi Water Institute have agreed next steps for the implementation of the Kruševo hydropower project, currently one of the most important in the Montenegro energy sector.

Montenegro’s Elektroprivreda Crne Gore (EPCG) said it signed a contract with the  Jaroslav Černi Water Institute for the design and detailed geological works for the Kruševo hydropower plant.

The deal was signed by EPCG’s Chief Executive Officer Ivan Bulatović the institute’s Executive Director Dejan Vučković.

The HPP Kruševo project for 82 MW in installed capacity and an estimated annual production of 170 GWh is a strategic investment for strengthening the energy system of Montenegro, according to EPCG.

There is a possibility of a joint project with EDF for the hydropower plant

Based on the study on the hydropower potential of the Piva river, adopted in 2023, HPP Kruševo is the optimal solution to utilize the hydropower potential at an upstream location, placed entirely in the territory of Montenegro.

EPCG said the project would increase clean energy production and significantly contribute to system and auxiliary services for the stability of the grid, strengthening the energy security of Montenegro and the region.

The utility added that the importance of HPP Kruševo was further acknowledged with a strategic partnership with French state-owned EDF. A memorandum of understanding, signed on September 20, lays the foundation for cooperation and exchange of expertise in hydropower and renewable energy sources, EPCG noted.

The focus is on hydropower. Kruševo and Ćehotina were determined as potential joint projects.

HPP Kruševo is the endgame

The HPP Kruševo project has been in development for some time. Former Prime Minister Duško Marković announced it in 2019.

In July 2022, EPCG launched a tender for a study on the hydropower potential of the Piva river downstream from the Piva hydropower plant to examine the possibility of building hydropower plant Kruševo. In November it selected the consortium of the Jaroslav Černi Water Institute and Switzerland-based Gruner Stucky as a contractor.

The project is estimated at EUR 160 million

On the occasion of the groundbreaking ceremony for EPCG’s first wind farm Gvozd, ten days ago, Minister of Energy Saša Mujović said Montenegro is taking very important steps towards the endgame, with the endgame being the construction of the HPP Kruševo. He expressed the belief implementation would start within two years.

Kruševo is on the government’s list of energy projects for funding via the European Union’s Growth Plan for the Western Balkans.

President of EPCG’s Board of Directors Milutin Đukanović recently valued the project at EUR 160 million. EPCG has prepared a detailed overview of further steps with the aim of signing the contract for the start of construction in 2026, Đukanović added.

The signing of the new deal was attended by Ivan Mrvaljević, Executive Officer at EPCG’s Directorate for Development and Engineering, the project manager Nebojša Grbović, and the institute’s representative Srđan Kostić.