Montenegro’s Pljevlja thermal power complex generated about 442,000 MWh of electricity from June through August, representing approximately 65% of EPCG’s total production during the three-month period. The state-owned power utility EPCG said the plant operated at an average output of around 200 MW, generating roughly 4,800 MWh per day. The electricity produced was valued at more than €51 million. The figures underline the continuing role of coal-fired generation in Montenegro’s electricity system despite the country’s expanding pipeline of renewable-energy projects.
Domestic Generation Compared With HUPX Imports
EPCG estimated that purchasing the same amount of electricity on Hungary’s HUPX power exchange would have cost around €57.4 million at prevailing market prices. The comparison excludes cross-border transmission capacity and other costs associated with electricity imports. According to EPCG, importing an equivalent volume would have cost at least €6 million more before transmission and congestion charges.
The plant remains particularly important when hydropower production is weak. Montenegro has substantial hydropower capacity, but output can fluctuate significantly depending on rainfall and reservoir conditions. During dry periods, reduced hydropower generation can increase the country’s dependence on electricity imports if Pljevlja is unavailable.
Renewable Projects Face a Significant Replacement Gap
EPCG is expanding its renewable generation portfolio, including the Gvozd wind complex. Construction of the 21-MW Gvozd 2 extension is under way, alongside plans for additional solar and battery projects. Gvozd 2 is expected to generate approximately 63 GWh annually, while Pljevlja produced 442 GWh in just three summer months. Replacing coal generation therefore requires additional renewable capacity as well as energy storage, grid reinforcement and flexible generation capable of balancing periods of lower wind, solar and hydropower output.
Rising Carbon and Environmental Costs
Coal generation is also facing increasing pressure as Montenegro moves toward closer integration with the European electricity market and aligns with European Union climate and carbon-market rules. Montenegro is not yet fully subject to the EU Emissions Trading System, but its accession process and regional carbon-market reforms point toward increasing costs for carbon-intensive generation.
The Carbon Border Adjustment Mechanism is also increasing the commercial importance of verifiable low-carbon electricity for companies exporting electricity-intensive products to the European Union. For EPCG, Pljevlja therefore provides protection against high wholesale electricity prices and hydrological risks, while continued operation could expose the company to higher future carbon and environmental compliance costs. The 442 GWh summer output demonstrates the scale of generation that would need to be replaced before coal could be substantially removed from Montenegro’s electricity system.
