In a recent interview with Bankar, Montenegro’s Energy Minister Prof. Dr. Saša Mujović discussed the ongoing challenges and strategic measures being implemented within the country’s energy sector.
Minister Mujović highlighted the notable increase in employment within the EPCG group over the past three years. To address this, the Ministry of Energy has mandated that all future hires in these companies must receive prior approval from the Ministry. This initiative is aimed at ensuring that new positions contribute positively to the companies’ financial health.
Reflecting on his initial experiences, Mujović described encountering a situation where state company boards were heavily influenced by political considerations. He noted that many board members were selected based on party affiliation rather than expertise. As part of his efforts to professionalize these boards, Mujović has been involved in selecting board members for EPCG and its subsidiaries, prioritizing reputable professionals with indisputable expertise.
Mujović praised CGES for its successful projects and efforts to modernize Montenegro’s electrical energy system. He acknowledged ongoing efforts by CEDIS to address issues raised in the State Audit Institution (DRI) report. He also highlighted the overstaffing and financial difficulties faced by the Steelworks and SOLAR Construction, emphasizing the need for effective management and strategic investments.
Regarding the Steelworks, Mujović expressed cautious optimism about a new contract with 8B Capital S.A from Lugano, which involves an investment of approximately €37 million over five years. However, he noted the historically challenging nature of past privatizations of the Steelworks, stressing the Ministry’s commitment to closely monitoring the implementation of this contract.
For SOLAR Construction, Mujović acknowledged the company’s poor financial performance last year, with losses of around €2 million. Despite this, he believes the company can improve if it operates more efficiently. The management has been instructed to enhance market engagement, promote solar panel benefits, and achieve at least 4 MW of solar panel installations per month. The company’s future performance will be closely linked to its ability to meet these targets.
On the topic of corporate governance, Mujović reiterated his commitment to depoliticizing state energy company boards. He recalled finding boards where many members were primarily serving their political parties’ interests rather than acting independently. In response, the Ministry launched a public call for candidates based on professional qualifications and reputation. Mujović is confident that the current boards include highly reputable professionals whose expertise is beyond dispute.
Looking ahead, Mujović stressed the importance of energy efficiency projects, supported by EU funds. He highlighted the government’s recognition of energy efficiency as a priority and noted that current programs are expected to generate over €25 million in investments for high-efficiency solutions. These programs are funded through the European Commission’s support package for the energy crisis, with €13 million allocated specifically for energy efficiency improvements. The Ministry plans to continue these programs and anticipates additional support through the EU’s upcoming “Growth Plan,” which will provide funding over the next four years.
Mujović also addressed environmental challenges related to the Pljevlja coal mine and thermal power plant. He outlined efforts to reduce emissions through ecological reconstruction of the plant and a district heating project aimed at eliminating individual heating systems in Pljevlja. Additionally, the Ministry has approved a €2.8 million energy efficiency project for the municipality and a 20% electricity price subsidy for residents before the heating season. Mujović emphasized the government’s commitment to mitigating the environmental impact of the thermal power plant and coal mine.
In conclusion, Mujović provided an update on the hydroelectric and solar power plant project on Lake Bileća. He reported that an initial meeting at EPCG had established a formal working group with members from both Montenegro and Republika Srpska. The next steps include advancing the project, preparing task outlines, and identifying suitable locations for the floating solar power plant.
