Montenegro has completed the diversion of the Ćehotina River at the Pljevlja coal mine, removing a physical constraint that had limited further development of the Potrlica open-pit mine and access to coal reserves supplying EPCG’s Pljevlja thermal power plant. Rudnik uglja Pljevlja said the project has obtained its water permit, allowing continued development of the mine and access to the reserves required for the thermal plant.
The project involved construction of approximately 3.2 kilometres of new riverbed, excavation of more than 500,000 cubic metres of material, installation of over 15,000 cubic metres of concrete, and blasting of around 120,000 cubic metres of limestone. Rudnik uglja completed earthworks valued at approximately €4 million using its own resources. The externally contracted part of the project had previously been valued at around €16.2 million excluding VAT. The previous course of the Ćehotina had restricted expansion of the Potrlica mine and affected access to coal reserves needed to maintain operations at the thermal power plant.
Pljevlja remains an important component of Montenegro’s electricity system alongside the country’s growing investments in wind, solar and storage capacity. During a recent three-month period, the Pljevlja plant accounted for around 65% of EPCG’s electricity production, with the utility valuing that output at more than €51 million. The importance of the plant is also linked to fluctuations in hydropower production. Montenegro’s hydropower facilities can generate substantial volumes during wet years, while output can decline significantly with lower rainfall. During dry periods or hydropower maintenance, electricity generated at Pljevlja reduces EPCG’s need to purchase power from regional markets. Such imports can become more costly when wholesale electricity prices increase or cross-border transmission capacity is limited. The completed river diversion therefore removes an immediate operating constraint while Montenegro remains years away from replacing coal generation with sufficient firm low-carbon capacity.
At the same time, the country is moving closer to European energy and carbon-market requirements, increasing pressure on coal-fired generation. The Pljevlja plant consequently needs to remain reliable during the transition while EPCG develops replacement generation and flexibility. The utility is expanding renewable capacity through projects including the Gvozd wind complex and is preparing investments in battery storage.
Private developers are also advancing a broader renewable project pipeline. Replacing coal generation, however, requires more than equivalent installed capacity. Wind and solar output depends on weather conditions, while the thermal plant can provide controllable generation that can be scheduled according to electricity demand. Additional energy storage, transmission capacity and balancing resources will therefore be needed alongside new renewable generation. The timing of any reduction in Pljevlja’s output is consequently linked to the availability of replacement infrastructure. Lower thermal generation before sufficient replacement capacity is operational could increase electricity imports and exposure to regional price movements.
At the same time, continued operation of the plant carries increasing environmental and future carbon costs as Montenegro progresses with its transition away from coal. The same tension applies to the mine. Infrastructure investment that maintains access to coal reserves supports near-term energy security while Montenegro prepares for a longer-term reduction in coal dependence. The Pljevlja municipality is particularly affected by this transition because the mine and thermal plant remain major employers and contributors to local economic activity. A future coal phase-out will therefore also affect employment, municipal revenues and businesses supporting the local energy complex.
Montenegro and international financial institutions are preparing transition programmes for the area, including cleaner district heating, energy-efficiency measures and renewable-energy investments. The completed Ćehotina diversion enables the existing energy complex to continue operating while replacement infrastructure is developed, reducing immediate uncertainty over coal supplies to the power plant.
