In the next few years, one billion euros will be invested in the energy sector of Montenegro

27. July 2020. /

This year alone, about 50m euros will be distributed to Montenegro’s first-line investment in electricity.

The plans of the largest energy entities in the country, as announced in the Third Package of Socio-Economic Measures, include investments with a total value of as much as one billion euros.

Through the new measures, special support is envisaged for the domestic economy to be able to provide services to energy companies, not only in the country, but also in the region. Of that, in the period until 2024, the realization of about 734 million euros of investments is expected. It is estimated that out of the total amount, the realization of about 350 million euros can be contracted with Montenegrin companies.



“The poor condition of the distribution network requires intensive and justified investments. Thanks to the excellent results in the elimination of unjustified losses in the network, the Montenegrin electricity distribution is today healthy and investment-capable. About 170 million euros of CEDIS investment by 2024, will not have a negative impact on the tariff for end consumers. It is similar with about 95 million euros of CGES’s plan, which after the commissioning of the submarine cable to Italy has grown into an export-oriented company, which generates almost half of its revenue from the export of services (15 million euros per year) “, it is stated in the Third Package measure.

“The final result of the planned investments is an increase in electricity production in Montenegro by about 20 percent, but also a significant improvement in the quality of delivery, especially in rural areas.”

TPP Pljevlja


The environmental reconstruction project is a multi-year project, worth 45 million euros, which should ultimately ensure full compliance of emissions of harmful particles from the power plant with European regulations. Activities related to the implementation of this project include the construction of a desulphurization system, denitrification, improvement of the operation of the electrostatic precipitator, construction of a wastewater treatment system and reconstruction of the internal ash and slag transport system. Through the realization of this project, it is envisaged that TPP Pljevlja itself will be a heat source for heating the city of Pljevlja.

A very important project that enables a healthier environment in Pljevlja is the already started project of reclamation of the Maljevac landfill. The value of this project is almost 11 million euros. In addition, the economic benefits of this project are significant, taking into account that the investment is realized by a domestic company.

HPP Perućica and Piva


Reconstruction and modernization of large hydropower plants is one of the priority projects in EPCG’s investment plans. In particular, it should be borne in mind that the reconstruction and modernization of these power plants EPCG creates even better preconditions for the valorization of potential, which means the possibility of increasing the profits that the company makes. On the other hand, investments of about 40 million euros contribute to the generation of added value and multiplier effects on the energy sector, but also the economy as a whole. Slightly more than 30 million euros will be invested in HPP Perućica, and around 9.5 million euros in HPP Piva. Also, HPP Perućica will get a new unit worth almost 24 million euros in the next four years.

Solar power plant


The contract for the construction of one of the largest solar power plants in Europe has been concluded between the state and a consortium consisting of EPCG, Finnish Fortum and one of the largest EPC contractors in this area, Sterling and Willson. The contract envisages the construction of the Briska gora solar power plant with a capacity of 250 MW. The current changes to the Ulcinj PUP will create preconditions for the smooth start of the construction of the power plant. The start of works is planned for the end of this year, and the time specified in the contract for the construction of the first phase of 50 MW is 18 months. The value of the investment is 180 million euros, and the participation of domestic companies is 30 million.

VE Gvozd


A series of activities carried out so far show the cost-effectiveness of building the Gvozd wind farm. In that sense, EPCG has entered the final phase of project preparation, which includes negotiations with financial institutions. The realization of this project involves the construction of a wind farm with a capacity of 50 MW, with an estimated investment of more than 60 million euros.

Completion of the design and obtaining a building permit is scheduled for the end of 2020, while the start of work on the construction of the power plant is scheduled for next year with the projected commissioning in 2022.

HPP Komarnica


Multi-year activities on the preparation of the project for the construction of HPP Komarnica are also in the final phase. In the previous period, activities were carried out that enabled the development of technical solutions that will on the one hand provide an acceptable level of impact on the environment, and on the other hand the economic and energy sustainability of the project.

With the planned solutions, it is planned to build a hydroelectric power plant with a capacity of 171 MW and an estimated value of about 272 million euros. Given the nature of such investments, it is realistic to expect that the participation of domestic companies will be in the amount of more than 50 percent of the investment.

After the expected adoption of the DPP by the Assembly, a spatial-planning precondition will be created for the beginning of the next phases of project development which will include a tender for the selection of the best bidder for the development of the main project and execution of works.

VE Brajići


The implementation of a successful concept, attracting investment in new production facilities, which includes the lease of state land, has resulted in an offer to build a wind farm with a capacity of 100.1 MW. The offer of the consortium led by the German WPD envisages an investment of around 101 million euros. Negotiations are currently in the final phase and the signing of the contract on the lease of state land is expected soon.

The investment also envisages a significant participation of domestic companies, which will make its effects more significant for the Montenegrin economy.

Through the realization of the project of ecological reconstruction, it is envisaged that TPP Pljevlja itself will be a heat source for heating the city of Pljevlja. This is a very important project that enables a healthier environment in Pljevlja, and the reclamation project of the Maljevac landfill has already begun.






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