State-owned power utility Elektroprivreda Crne Gore has received approval from the Government of Montenegro to take a EUR 64.2 million loan for ten renewable energy projects.
Elektroprivreda Crne Gore (EPCG) will take out a loan to implement a portfolio of renewable energy projects with a total installed capacity of 95.87 MW.
The ten renewable energy projects have a projected annual production of 124,518 MWh, according to the Government of Montenegro’s note on EPCG’s request to approve obtaining a long-term loan.
Complementary projects
The following ten projects make up the list:
- Solari 5000+
- Željezara Solar Power Plant (SPP)
- Vrtac Dam SPP
- Slano Dam SPP
- Krupac Dam SPP
- Kapino Polje L1 SPP
- Kapino Polje L2 SPP
- Kapino Polje B1 SPP
- Kapino Polje B2 SPP
- Krupac 47 – Phase I.
Solar power plants Vrtac, Slano, and Krupac will be installed on the dams and shores of the lakes within the Perućica Hydropower Plant (HPP) system. The Kapino Polje photovoltaic plant will be ground-mounted, while the Željezara plant will be built on the site of the former steelworks.
The Solari 5000+ project involves the installation of solar panels on the rooftops of households and businesses.
According to EPCG, these are mutually complementary projects that contribute to increasing electricity production from renewable sources, strengthening energy security, and achieving Montenegro’s energy transition goals.
The projected annual revenue of the power plants is EUR 20.7 million
The loan does not involve the issuance of a state guarantee or budget coverage. The loan repayments will be serviced from the cash flows generated by the projects and the company’s regular operations, EPCG explained, adding that it has already invested around EUR 18.9 million of its own funds in the implementation of these projects.
The projected annual revenue for the first full year of operation of renewable power plants is approximately EUR 20.7 million, and the projected EBITDA is around EUR 20 million. The payback period is 3.29 years, according to EPCG.
The company stressed that the Solari 5000+ project enables the transfer of approximately 90% of the investment value to end-users, thereby significantly reducing the effective credit exposure of EPCG.
