The Electric Power Company of Montenegro (EPCG) is set to end this fiscal year with a positive result, despite the challenges faced. Looking ahead to next year, which will be particularly tough due to the eight-month shutdown of the Pljevlja thermal power plant (TPP), the management is committed to overcoming all obstacles.
EPCG Executive Director Ivan Bulatović stated that the company has accomplished a lot this year, given the complex nature of the situation. He noted that the company had 671 gigawatt-hours (GWh) less energy available for sale compared to the previous year.
“Given that we didn’t change the price of active electricity for end-users, we consider the positive result we’ve achieved to be a significant achievement,” Bulatović said during the annual press conference.
Impact of hydrology
Bulatović also announced that the company would continue working at full capacity to achieve even better results next year.
“Next year will be even harder due to the eight-month shutdown of TPP. We will have about 40% less available energy. A lot will depend on the hydrological situation, but we have launched numerous projects to reduce our dependence on it,” Bulatović added. He emphasized that the company had also made significant investments and achieved a positive financial result.
Milutin Đukanović, Chairman of EPCG’s Board of Directors, highlighted the projects that had been completed or initiated this year, including solar panels, the Gvozd Wind Farm, and the construction of the eighth unit at the Perućica hydroelectric power plant.
“In January, we will issue a public call for the procurement of 300 MW of battery storage systems,” Đukanović said.
Solar power on balconies
Đukanović also announced the continuation of the 5000+ project starting today.
“We will offer a new initiative allowing the installation of solar power systems on balconies of residential buildings,” he added.
Regarding electricity prices, Đukanović confirmed that there would be no increase from January 1. He further explained that a price increase could be considered when the environmental reconstruction of TE begins, though he assured that if any increase occurs, the company would minimize the impact on citizens.
“Electricity prices have not increased in the past three and a half years,” Đukanović noted.
Expansion of renewable energy
Ljubiša Đurković, Technical Director, highlighted the continuation of the 3000+ and 500+ projects, which included the launch of the Solari 5000+ project. Over 25 MW of photovoltaic systems have already been installed.
“The goal is to complete over 90% of the Solari 5000+ project by the end of next year, with a total installed capacity of 70 MW,” Đurković specified.
He also pointed out that EPCG must build new energy sources within the next four or five years.
“We must increase the share of energy generated from renewable sources and reduce the proportion of coal-based energy in our portfolio,” he said.
Challenges ahead
Darko Krivokapić, Head of the Energy Management Directorate, noted that this year had been challenging but successful, considering the available production and market prices. He reassured consumers that energy supply would not be jeopardized despite the upcoming challenges, including the TPP shutdown.
“We expect to import between 700 and 750 GWh during this period, which will cost around 70-80 million euros. We’ve already secured about 60% of the necessary energy for next year,” Krivokapić said.
Jovan Kasalica, Head of the Supply Department, reported that the total annual invoicing by EPCG had exceeded 295 million euros, with a high success rate in collection.
“We’ve managed to collect more than we’ve billed for the fourth consecutive year. We now have about 260,000 customers who regularly pay their bills,” Kasalica noted.
Financial performance
Branislav Pejović, Director of the Financial Department, acknowledged that it had been a challenging year for EPCG.
“We faced a shortfall of almost 80 million euros in revenue from energy trading compared to last year. There was immense pressure on cash flow and liquidity, but we managed to finance all projects and investments in cooperation with partner banks,” Pejović said.
He confirmed that the company would finish the year with more than 40 million euros in its accounts.
“The business result for this year will be positive. However, next year will be extremely difficult. We will need to import more than 70 million euros’ worth of energy,” Pejović concluded.
