Elektroprivreda Crne Gore (EPCG) reported a total investment of €42.66 million for the previous year, marking a decrease of about €4.7 million compared to the €47.3 million invested the year before.
According to the official Energy Sector Status Report, the investments were distributed as follows: €16.13 million went to renewable energy projects, €15.2 million was allocated to production, and €11.9 million was invested in development and engineering.
The report, compiled by the Regulatory Agency for Energy and Regulated Utilities (REGAGEN) under Chairman Branislav Prelević, provides the following details:
“Last year, a total of €15.27 million was invested in production. The most notable investments included €12.46 million for the ecological reconstruction of TPP Pljevlja. The remainder was used for overhauls of transformer block 2T1 at HPP Piva, and for the reconstruction of several small hydropower plants including Rijeka Mušovića, Lijeva Rijeka, Šavnik, Rijeka Crnojevića and Podgor, as well as the cooling system at HPP Perućica. Additionally, €16.14 million was invested in the Renewable Energy Directorate for projects such as Solar 3000+ and Solar 500+, which focus on photovoltaic systems and small power plants for individual properties,” the report states.
In the Development and Engineering Directorate, significant investments included €8.05 million for the reconstruction and modernization of HPP Perućica, €429.4 thousand for HPP Piva, and €556.47 thousand for continuing the project of reclamation at the Maljevac landfill at TPP Pljevlja. Further investments amounting to €2.16 million were dedicated to technical documentation, project design, and studies related to upcoming projects like wind farm Gvozd, HPP Komarnica, HPP Kruševo, solar power plant Brana Slano and Brana Vrtac, solar power plant Vilusi and gas power plants.
The wind fark Gvozd project alone saw an investment of €1.08 million last year. This progress included securing a significant corporate loan agreement with EBRD and the Green Gvozd project company. The €82 million loan, the largest of its kind in Montenegro, will fund the development of a 55 MW wind farm near Gvozd in the Nikšić Municipality, aiding Montenegro’s decarbonization and energy transition efforts.
In addition to this, EPCG is evaluating new wind farm opportunities in various northern municipalities such as Nikšić, Šavnik, Žabljak, Kolašin, Bijelo Polje, Mojkovac and Pljevlja.
For the Montenegrin Electricity Distribution System (CEDIS), the regulator reported total investments of €14.52 million for the past year, with an approved investment budget of €36.87 million.
“Alongside planned investments, CEDIS invested an additional €4.76 million in projects from previous plans. The company also acquired electrical infrastructure valued at €4.73 million and €140.99 thousand from prior years. However, investments in the primary and secondary networks, AMR, and measuring equipment fell short of plans, largely due to issues with property rights, extended tender processes, and rising material and labor costs,” the report explains.
CGES, the electricity transmission system operator, invested €11.5 million out of 39 approved investments totaling €31 million for the year.
“Additionally, CGES invested €727.49 thousand from previous period investments. The focus was on developing the transmission system to provide a safer, more reliable, and higher-quality electricity service and to support the integration of new electricity generation facilities,” the report notes.
The report highlights that the lower-than-expected investment realization was due to a lack of spatial planning documents, extended tender processes, and issues related to property rights and land acquisition.
Since the introduction of investment incentives, the total realized investment value in the system is approximately €513 million, with around €282 million directed toward the distribution system and €231 million toward the transmission system.
By the end of last year, Montenegro’s electricity system comprised 50 power plants and 21,630 kilometers of transmission and distribution networks, serving a total of 435,620 customers.
