Due to the extended shutdown of the Pljevlja Thermal Power Plant (TPP), Elektroprivreda Crne Gore (EPCG) is expected to spend approximately 70 million EUR next year on purchasing electricity, according to Minister of Energy and Mining Saša Mujović.
Mujović told Pobjeda that efforts are underway to prevent an increase in electricity prices, expressing confidence that energy companies will play their part to mitigate any potential price hikes.
“EPCG is actively working to secure the necessary amount of electricity under the best possible scenario. The planned shutdown is set for 7.5 months next year. EPCG management is pursuing two main strategies. Firstly, negotiations with the contractor are ongoing to potentially shorten the shutdown to six months, which would allow the power plant to return to the grid earlier and reduce the potential electricity deficit that may require imports,” explained Mujović.
He elaborated that the second strategy involves procuring the estimated 700 GWh of electricity needed, with the deficit concentrated mostly during the summer months from June to September. Mujović estimated the cost of this procurement to be around 70 million EUR.
Mujović emphasized that EPCG’s management has adopted a phased approach to procure electricity, ensuring optimal timing and favorable commercial terms.
“EPCG’s stance will depend on achieving the energy balance by the end of this year and the hydrological conditions in the winter of 2024/2025, especially during the first quarter of next year,” Mujović added.
Regarding the Ministry of Energy’s directive to its subsidiary Elektroprivreda Solar Gradnja to terminate contracts with a company from Bosnia and Herzegovina on the US blacklist, Mujović emphasized the importance of maintaining strong bilateral relations with the United States.
“It’s crucial for Montenegro to uphold its foreign policy priorities, as evidenced by Prime Minister Milojko Spajić’s recent invitation to the White House by President Joe Biden as part of NATO’s 75th anniversary celebrations,” Mujović highlighted.
He underscored the need for Montenegrin companies, including EPCG Solar Gradnja, to avoid reputational risks and comply with international standards to safeguard Montenegro’s interests.
Mujović acknowledged the challenges ahead for EPCG and its subsidiary in navigating potential sanctions and emphasized the need for proactive management to protect their business interests.
“It’s essential that Montenegrin companies do not suffer undue financial consequences due to contractual terminations, especially considering agreements made before these entities were placed on the US blacklist,” Mujović remarked.
He clarified that state-owned enterprises operate within legal frameworks, with the ministry focused on strategic oversight rather than day-to-day business decisions.
“The ministry’s role is to set strategic objectives in the energy sector and facilitate conditions for their achievement,” Mujović affirmed.
In conclusion, Mujović assured that despite challenges, measures would be taken to shield vulnerable population groups from adverse impacts and reiterated the commitment to preventing electricity price hikes.
“We are committed to ensuring stability and affordability in the energy sector,” Mujović concluded.
