Pljevlja is one of Montenegro’s most economically consequential municipalities, despite lying far from the coastal tourism centres and political institutions of the south. As the country’s industrial and energy heart, Pljevlja holds a unique position in the national economic system, anchored by coal mining, energy production, metallurgy, wood processing, manufacturing and a sizeable service sector that supports both local residents and the broader northern region.
The story of Pljevlja is inseparable from its natural resources. The municipality sits on Montenegro’s largest coal deposits, which for decades have fueled the Pljevlja Thermal Power Plant — the backbone of the country’s electricity supply. The energy sector shapes local employment, industrial capacity, logistics flows and municipal finances. The mining basin around Pljevlja is the core of this economic ecosystem, creating steady jobs and generating income for thousands of households directly and indirectly.
The power plant itself has undergone ongoing modernisation to meet environmental standards and maintain Montenegro’s energy independence. Investments in desulphurisation, emission control, and equipment upgrades reflect both the necessity of reliable energy production and the need for decarbonisation in line with European policies. While the long-term shift toward renewable sources is inevitable, Pljevlja’s energy sector will remain vital for years to come, especially as Montenegro manages the transition process.
Beyond coal and electricity, Pljevlja has a long industrial tradition. Metallurgy and metal processing remain active, with small and mid-sized companies producing machinery components, metal structures, tools and equipment. The timber industry is another pillar: the municipality’s forests support sawmills, furniture workshops, carpentry firms and wood processing plants. This sector has significant potential for expansion, especially if more investment flows into high-value production such as furniture design, laminated wood, prefabricated structures and interior manufacturing.
Agriculture plays a meaningful but secondary role. Pljevlja’s rural areas support livestock farming, milk production, potatoes, and hay — forming the basis for local dairy products and traditional foods. Although not as export-oriented as some other Montenegrin regions, Pljevlja’s agriculture supplies the local market and supports rural livelihoods.
One of the municipality’s underappreciated strengths is its geographic connectivity. Pljevlja lies near the borders with Serbia and Bosnia and Herzegovina, making it a natural logistics and commercial hub. The city’s location allows manufacturers to reach regional markets quickly. Improvements to road infrastructure — particularly routes toward Prijepolje, Žabljak and the Montenegrin central corridor — are critical for unlocking the region’s full economic potential.
Tourism is not as dominant in Pljevlja as in other northern municipalities, but it has strong niche potential. The monastery of the Holy Trinity, medieval fortifications, Ottoman-era heritage, mountain landscapes and rural villages offer opportunities for cultural and eco-tourism. The Tara Canyon and Đurđevića Tara Bridge are accessible, allowing Pljevlja to integrate into regional tourism circuits. However, tourism infrastructure is modest and requires investment in accommodation, hospitality, signage and marketing.
Pljevlja’s urban economy is diverse. Retail trade, services, hospitality, administrative institutions, education and healthcare provide a stable employment base. Local SMEs in construction, mechanics, electrical installations and food production remain active. Yet the dominant narrative is one of a town defined by industry and energy — a reality that brings both opportunities and challenges.
The major challenge is environmental sustainability. For decades, Pljevlja has carried the burden of being the industrial centre of Montenegro, often facing air quality issues, waste management problems and the ecological consequences of mining. Tackling these issues requires coordinated efforts between local authorities, national institutions and industry operators.
Demographics present another challenge: population decline and youth emigration threaten workforce availability. Diversifying the economy is vital to attract young people and create long-term stability.
However, Pljevlja also has significant opportunities. The coming energy transition could position the municipality as a centre for renewable energy projects, solar and wind farms, biomass utilization, and energy-efficiency industries. The large industrial workforce can be retrained for new technologies, while industrial zones can host diversified manufacturing.
In the next decade, Pljevlja’s strategic importance will remain high. The municipality will continue to shape Montenegro’s energy balance while gradually stepping into new economic roles. Its success will depend on environmental management, industrial diversification, infrastructure upgrades, and investments that leverage its strategic location and industrial expertise.
