Montenegro’s transition away from coal in Pljevlja involves coordinated investment in electricity generation, energy storage, district heating, environmental compliance and the future use of existing industrial land. The northern industrial centre must also address power-system security and coal-sector employment as its energy infrastructure changes.
At AIM 2026, EPCG, the Pljevlja coal mine and the European Bank for Reconstruction and Development (EBRD) signed a memorandum covering cooperation on the area’s energy transition. The framework includes solar power generation with battery energy storage, district heating and thermal-energy storage on the former mining complex.
The arrangement links electricity investment with local infrastructure, bringing several components of the transition into a common development framework.
Each component presents distinct engineering requirements. Solar generation and battery energy storage systems (BESS) depend on grid connections, land conditions, operating strategies and market access. District heating requires a reliable heat source, network design, customer connections and a long-term operating model, while thermal storage must be sized according to heat demand and the characteristics of its energy source.
These differences also affect construction schedules and revenue structures, requiring coordination across the projects.
Financing will need to accommodate different economic and funding profiles. Some investments may be commercially viable, while others could require grants, concessional debt or public support because their benefits are partly social or environmental. Blended finance can combine these sources, provided that project costs and benefits are clearly allocated so that each capital provider understands the activities being financed.
Potential cooperation on carbon capture adds another element to the transition. Carbon capture and storage (CCS) would require detailed feasibility assessments covering energy consumption for capture, retrofit complexity, CO2 transport and permanent storage, liability and cost per tonne. These factors would need to be evaluated against alternative transition pathways rather than assuming CCS will be adopted.
The timing of investments is also important for Pljevlja. Ending existing economic activity before replacement assets become operational could create pressure on employment and energy security, while delaying the transition could increase environmental and carbon exposure. A multi-year master schedule would need to coordinate existing operations, new infrastructure, workforce transition and public investment.
Independent Owner’s Engineering and engineering finance can provide oversight across individual contracts, covering interfaces between electricity generation, heating, civil works, storage, environmental obligations and financing conditions. This coordination is relevant to ensuring that technical requirements and funding arrangements remain aligned throughout implementation.
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