Montenegro: Profitability of TE ‘Pljevlja’ is indisputable, Investors
It is indisputable that there are 194,297,881 tonnes of lignite and black coal reserves in the Pljevlja basin. It has been shown by a techno-economic analysis of potentials for supplying the Thermal Power Plant (TE) “Pljevlja” second block, which was conducted in July 2013, the Ministry of Economy communicated.
The Ministry of Economy responded to the statement by the Coordinator for Economic Policy and European Integration of the Civic Movement United Reform Action (URA), Dejan Mijovic, who said that the TE second block would not be profitable.
“It is indisputable that the project of the TE second block is profitable as demonstrated by the preliminary design and the feasibility study “TE Pljevlja II”, which was done by the Electric Power Company of Montenegro (EPCG) in 2012”, the Ministry of Economy explained.
According to them, there is no doubt that Fichtner’s study was done in 2009, based on input data from 2008 and 2007, which are now obsolete in terms of coal price, fuel price as an important item in the production price of coal, land price and infrastructure…
Accordingly, as pointed out by the Ministry of Economy, all the aforementioned parameters represent an indispensable factor in determining whether coal reserves are commercially viable or not.
They have emphasised that it is also undisputed that the Fichner’s study was neither based exclusively on the TE second block project, nor was it a topic of the study.
“The study has been focused on the thermal power complex, with emphasis on the reserves in Maoce, and made a reference to the possibility of supplying the existing thermal power plant, i.e. the first block, stipulating that a new block is constructed and that both blocks operate in parallel for 30 years,” The Ministry explained.
However, in 2012, i.e. three years after the Fichner’s study, the Energy Community made a decision which has been binding for Montenegro and stipulated that the power plants in the region (including the TE Pljevlja) would be allowed to work for another 20,000 hours from the end of 2017 to 2023.
“The majority of power plants in the region operate with outdated technologies and are at the end of the working life, so they have raised the question of their environmental rehabilitation (which demands significant funds) or their closure and replacement with new power sources. These data could not be involved in the study because it had been done earlier,” the Ministry of Economy concluded.