It is necessary to revise the decision on the eco reconstruction of the Montenegrin TPP Pljevlja

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The non-governmental organization Eco Team called on the Government and the Ministry of Capital Investments to revise the decision on the implementation of the project of ecological reconstruction of the Thermal Power Plant (TPP) Pljevlja and consider its economic justification.

“More reason for careful consideration and analysis is the secrecy of the documentation related to this project and the lack of a feasibility study that proves its economic justification,” the Eco Team said in a statement.

They added that TPP Pljevlja is facing the challenge of cessation of work and the threat of the Energy Community initiating misdemeanor proceedings for unauthorized work.

“The drastic changes in carbon prices that have taken place within the EU ETS over the last three years have dramatically affected the cost of producing electricity from fossil fuels, although current carbon prices are declining in the market caused by the spread of coronavirus, which has caused less demand for electricity “, said the Eco team.

They reminded that the consulting firm Deloitte prepared a Feasibility Study for the construction of the second block of TPP four years ago and projected unrealistic values ​​of energy prices which were overestimated and carbon dioxide emissions underestimated. This has led to unrealistic estimates of its business from last year to 2040.

“The well-known situation that happened with the second block of TPPs and the lack of interest of financial institutions to invest in the coal sector even then, is a warning for the Government to carefully consider all aspects before supporting the project, especially the financial context due to rapid changes in the energy sector. they discourage investments in coal, ” said Eco team.

They consider it unacceptable and frivolous to enter into such a project without the necessary studies that confirm its economic and any other justification, which is why they warned of the need to publish all documents and analyzes declared EPCG a business secret, revised and only then make a decision on support.

“A recently published study by the Energy Community on the implementation of charging for carbon dioxide emissions in the Western Balkans region showed that the full implementation of that charging in the context of market integration in Montenegro will make it possible for Montenegro to close and decarbonise its coal system in 2025. Currently, TPPs are granted free emission credits for carbon dioxide, and a smaller part of the emissions is paid for “, said the Eco team.

They believe that it is necessary to make a feasibility study for the project of ecological reconstruction, make new projections of operating costs and by adding other elements of the calculation to get the production price of electricity in the reconstructed TPP.

“Only on the basis of the price thus obtained would the possibilities and options for further operation of the TPP be considered,” the Eco team stated.