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NewsEnergy Minister outlines key projects and challenges in National Energy and Climate...

Energy Minister outlines key projects and challenges in National Energy and Climate Plan

The Ministry of Energy has prepared a draft National Energy and Climate Plan, which has been sent to the Energy Community (EC) for review. The plan includes the proposal to shut down the Pljevlja thermal power plant (TPP) by 2041.

Energy Minister Saša Mujović stated at an annual press conference that the EC has been asked to consider that Montenegro will not meet its goals set for 2030. He explained that achieving these targets would require an investment of 1.1 billion EUR, which is a significant amount for the country. Therefore, he requested understanding that the 2030 deadline is unrealistic. He also pointed out that the plan should have been finalized last year, so the country is already behind on this matter.

In early October, the Director of the EC, Artur Lorkowski, informed the minister that the decision of the EC Ministerial Council from December 15, 2022, which set Montenegro’s national energy and climate targets for 2030, would be re-examined.

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Minister Mujović highlighted that Montenegro must reduce emissions to 2,400 tons of CO2, which would require strict measures in the energy and transport sectors. This includes building more renewable energy power plants, introducing electric vehicles, modernizing public transportation, and mandating the use of biofuels.

He also noted that the Ministry requested an extension for the Pljevlja TPP until 2041 to allow the country time to develop other energy projects.

The Ministry of Energy and the Montenegrin Transmission System (CGES) have prepared a final solution to address the issues that halted the construction of the second undersea cable between Italy and Montenegro, which is part of the Trans-Balkan Corridor project.

Mujović mentioned that details could not be disclosed yet, but the issue will be resolved by the end of the year. He pointed out that the route of the corridor cannot be significantly altered, and there are limitations due to the Durmitor National Park.

Two key issues that need to be resolved quickly for the continuation of the project include property rights issues in the Đurđevića Tara and Njegovuđa locations and the non-adoption of planning documents for the Pljevlja-Bajina Bašta power line corridor. This major project involves constructing a 1,000 MW undersea HVDC cable between Italy and Montenegro, building a 400/110/35 kV substation in Lastva, and constructing a 400 kV transmission line connecting Lastva-Čevo-Pljevlja. One phase of the undersea cable, with a capacity of 600 MW, the Lastva substation, and the Lastva-Čevo transmission line, has already been commissioned.

At the conference, it was announced that Nikšić Steelworks had paid gross salaries for all 280 workers involved in the production of steel structures and blocks for a solar power plant for the first time.

Minister Mujović said that the Swiss company 8B Capital, which leases the steelworks and forging plants, is fulfilling all contractual obligations. He also noted that there will be a shortage of workers when the investor takes over employees under the contract, especially welders.

According to him, the unresolved issues at the steelworks include the resolution of tax debts and waste left by the previous Turkish investor.

The Chairman of the Board of Directors of the Electric Power Company (EPCG), Milutin Đukanović, stated that the steelworks must show profitability in the next few months before EPCG provides guarantees to resolve the tax debt, which would be restructured for one year.

Minister Mujović also revealed that by the end of the year, the government will approve subsidies for electricity so that prices do not increase. Regulatory decisions must be respected, and CEDIS and CGES cannot forgo their revenues, as this would mean fewer investments.

He emphasized that electricity prices must increase by 2027 to reach the European average of 27-28 cents per kilowatt-hour. The expected price increase would raise the cost of a kilowatt-hour from 10 to 16-17 cents, aligning with the current average in Croatia. Special conditions will apply to vulnerable groups.

Mujović also reported that in the year since he took office, there has been a slight decrease in the number of employees across the Ministry’s subsidiaries. He expects Solar Construction to operate profitably by the end of the year.

For Solar Construction to operate profitably on a monthly basis, it is necessary to install three megawatts of solar panels, Mujović clarified.

The Ministry of Energy has secured 100,000 subsidies for air conditioning units for citizens of Bijelo Polje, and activities have begun to develop a heating study for the area.

The ministry is conducting a feasibility study for energy storage facilities at the Pljevlja Coal Mine (RUP), Steelworks, and the Perućica Hydroelectric Plant, with a combined capacity of 60 MW. This is seen as the best way to further leverage solar and wind potential. These locations were chosen because there are no issues with connecting to the transmission network, Mujović explained.

The Ministry has prepared a new energy law, which is expected to be passed by the end of the year, and a contract has been signed for geological research for the Kruševo Hydroelectric Project with the Jaroslav Černi Institute for Water Management.

Mujović also announced that by the end of the year, the Municipality of Nikšić would receive a payment of 823,000 EUR as compensation for land related to the Bilećko Lake project.

“This should have happened earlier, but we had to show understanding for the Republic of Srpska, which lost two arbitration cases against Croatia and Slovenia,” Mujović noted.

He also mentioned that the Coal Mine is already digging a new bed for the project to relocate the Ćehotina River, having already excavated 150,000 cubic meters of limestone material.

Minister Mujović announced that the first phase of district heating in Pljevlja will be completed next year, with the goal of replacing the central city boilers.

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