If the ecological reconstruction project was not implemented, the Pljevlja Thermal Power Plant (TEP) would cease to operate, and the state would be left without 1.200 jobs and half of the electricity from its own sources.
This was said in an interview with "Vijesti" by the executive director of Elektroprivreda Crne Gore (EPCG). Nikola Rovčanin, explaining that the current epidemiological situation is the main reason why the project has not yet been implemented.
Rovčanin also announced the establishment of the company "EPCG Solar gradnja", which would manage the production of electricity from solar sources. He also announced the realization of projects worth 1,3 billion euros, assessing that in two years they will build more than their predecessors in four decades.
When and if EPCG will begin the implementation of the TEP ecological reconstruction project? Why is the implementation of that work delayed? Does the start of the works depend on the outcome of the proceedings initiated by the European Energy Community (EEC) against Montenegro for non-compliance with the EU Directive on limiting the emission of certain pollutants in the air?
The work of TEP has no real alternative. On the one hand, you have an ecological reconstruction of 54 million euros that will meet the standards of strict European environmental directives and enable operation for at least 10 years, and I hope more. On the other hand, you have the purchase of electrical energy worth over 100 million euros per year in case it stops working. All in all, an investment of 54 million in ecological reconstruction against imports of over one billion euros in a ten-year period. My proposal is to provide the rest of the money for ecological reconstruction through a loan arrangement, so that the loan installments are at the level of the daily production of TEP. In this way, we would end up in a situation where TEP works for itself one day, and for the state and citizens for 29 days, at least until 2030, and I am very optimistic about the possibility of it functioning even after that period. If there is no environmental reconstruction, then there is definitely no TEP, no 1.200 jobs, no 50 percent of the country's electricity production, not to mention the indirect consequences for the country's economy, the shutdown of numerous companies, the growth of the foreign trade deficit, the drop in average wages and hundreds of others negative effects. The question is who, reasonable and well-intentioned, would give that up at this moment and shoot the energy sector of Montenegro in the head, without first providing new replacement plants. We must also take into account the Pljevlja Coal Mine, its business stability as well as the future of the employees...
I expect the start of work on the ecological reconstruction of the TEP soon, and the key factor in the delay is the epidemiological situation. I expect the rapid creation of assumptions in cooperation with the Ministry of Finance regarding finding a legal model for the realization of additional works. Despite the fact that certain structures advocate abandoning ecological reconstruction due to a bad contract, I would like to point out that, to put it figuratively, we inherited a house in which we noticed that one wall was poorly built, so the question arises, should we demolish the house or repair the wall? I believe that the obligations we have towards the state and citizens require us to work in the direction of preserving both the company and energy stability. Precisely because of this, and with the aim of speeding up the work, I formed a new team to monitor the realization of the project, which was expanded and strengthened by the inclusion of several external collaborators. When it comes to EEC conditions, I have to state that TEP was brought to the brink of shutdown by the previous management and in such a position was handed over to the new management. However, due to the importance of the operation of the TEP for the country's electric power system, I expect a positive outcome of the talks between the competent ministry and the EEC, after which the continuation of the operation of the thermal power plant would be ensured. And in this process, ecological reconstruction is a key asset for additional working hours, not to mention the intervention of the Environmental Protection Agency in the direction of revocation of the integrated license, i.e. immediate shutdown, in case of abandonment of ecological reconstruction.
The international public call for the provision of financial resources for financing the project "Solari - 3000+" and "Solari 500+" for legal entities in the amount of 30.000.000 euros ended on August 23. Were there any domestic and international financial institutions interested in lending to the project and under what conditions do they offer loans? When will citizens be able to apply for the project.
Eight interested financial institutions applied for this project, following an international public call for funding. The offers were thoroughly analyzed, and meetings were held with all bidders. We expect information about the best offer soon. In the meantime, the project teams are working on the preparation of a call for equipment procurement and a public call for citizens and business entities that want to participate in this project. The goal is for citizens to get almost free energy, and for EPCG to sell that energy on the market at higher prices. Thus, both citizens and our company will benefit. On this occasion, I invite citizens to apply and get involved in this revolutionary project from which they will have direct financial benefits for their household budgets.
In what period do you plan to realize that work? Will it be necessary to hire new workers for the implementation of the project, or are you possibly planning to establish a new company that will manage the production of electricity from solar sources?
In order to facilitate the implementation of the project for the users, we initiated, following the example of numerous European energy companies, the idea of establishing the company "EPCG Solar gradnja", which would carry out work on this project, with the implied qualification for new or similar activities in the future. This will open up space for new jobs, train the domestic workforce for all future projects in the field of solar energy and round off another new entity within the EPCG group, thus definitely keeping up with the times and needs of the energy transition. Intensive work is underway on the preparation of a public call for the procurement of equipment and a call for interested parties, about which the public will be informed in a timely manner.
At what stage is the implementation of the project for the construction of a small hydropower plant on the dam in the village of Otilovići in Pljevlja, a floating solar system on the Salt Lake and the heating of Pljevlja?
The fact that the Otilovići HPP was not built immediately after the conditions were met, led EPCG to lose more than 20 million euros, bearing in mind that the annual production would be worth 600-700 euros. The expected annual production is 000 GWh. We expect the competent ministry to deliver concessions for the use of surplus water as soon as possible, and next week I will form a project team of internal and external personnel who will lead the implementation of this important project. Given that we are permanently committed to investing in the development of green energy, in addition to the construction of the Otilovići HPP, we plan to, in cooperation with credible partners, implement a floating solar project on the Salt Lake in Nikšić. Some Danish companies are showing serious interest in this project, and the realization would certainly be in line with the guidelines given by the International Union for the Conservation of Nature and Natural Resources (IUCN) for mitigating the negative impact of renewable energy sources on biodiversity. The project team, which was formed a month ago, is already working intensively on its implementation. We have started the implementation of the project "Heating of Pljevlja". It is a project that has been waiting for 11,4 years. It is about the construction of the primary heat pipe from TEP, which, after the realization of ecological reconstruction, will be the heat source to the city. This will create the conditions to connect the existing infrastructure to the heat source and to provide a perspective according to which, in the second and third phases, that heat branch would spread throughout the city. It is planned that the works will start in 40, and that the realization will last several months.
Does EPCG plan to build gas thermal power plants as an alternative to TEP, which, according to announcements, will most likely stop working in 2030?
I would not bid on the year of termination of TEP, especially since, like many countries in the region and the EU, our country, in cooperation with the energy sector, will seek modalities for a just transition and define the year of termination of TEP. To this end, following the obligations to the EEC, many projects and alternative sources of energy are in circulation, among others, gas power plants. This is primarily a state issue, but I believe that gas power plants are a good model and energy source at the moment. That question will, of course, be the subject of both energy and socioeconomic analyses, so that the process of just transition is carefully implemented. Special care will be taken of employees in the thermal energy complex and the aspect of social justice, as it is done in other European countries.
What are the other current projects in EPCG, what projects do you plan to start in the coming period?
All investments that EPCG has in mind at the moment are estimated at over one billion and three hundred million euros. The energy transition implies a strong investment cycle in green energy and investment in environmental standards of existing facilities, so that they will be in operation as long as possible, at least until new replacement production facilities are built. One thing is certain: in two years we will build more than our predecessors did in 40 years. In addition to the projects I have already mentioned, the "Gvozd" wind power plant stands out among the new ones, the construction of which should begin at the beginning of next year, and the signing of the contract is expected soon. For this project, we have also established preliminary cooperation with the European Bank for Reconstruction and Development (EBRD), in order to provide the necessary funds for its implementation. euros, are proceeding according to plan, and impressive results have been achieved in this regard...
Our goal is to accelerate the dynamics of activities on the "Briska Gora" solar power plant project, as well as to create conditions for the realization of the "Komarnica" HPP project, for which EPCG received a concession. The actualization of activities related to the construction of HPP "Kruševo" is also in the preparatory phase. By implementing these projects, we would get an additional 300 MW of installed power, which, without any doubt, will generate further development of our company and the power system. I would also add that EPCG is considering participating in the planned tender for the lease of land for the construction of a solar power plant at the location of Velje Brdo in Podgorica, where, in phases, a photovoltaic power plant with a total power of 150 MW is planned, whereby phase I would envisage a power plant with a power of 50 MW . The construction of new production capacities, with an emphasis on facilities from the field of renewable energy sources, is a priority goal that has no alternative when it comes to the development of our company and the power system. Along with that, there is an unquestionable commitment to the revitalization and modernization of existing plants.
Have you discovered any irregularities in the work of the previous management, apart from those with which the public is already familiar?
The goal of the new management is to review absolutely every aspect of the business. In this sense, we have already formed 12 commissions that deal with the analysis of the most significant and for the public the most interesting segments of the previous work. In these commissions, in addition to EPCG employees, external experts are also included, in order to enable a greater degree of neutrality in the work. The public has already learned about some irregularities, and it is certain that any new irregularities, if detected, will not be hidden from the public eye.
Citizens and the economy owe more than 181 million euros
How much do citizens and the economy owe to EPCG for the electricity used? Are there any and how many claims that cannot be collected and why?
The total debt of economic entities and households amounts to 181.128.127 euros, of which 120.597.188 euros belong to households, and other consumption amounts to 60.530.939 euros. It is important to note that, according to the relevant data from the last period, the amount of debt has a tendency to decrease. I would like to point out that the number of regular payers is increasing. Currently, it is around 210 thousand, as this contributes to the stable functioning of the electricity system. Undoubtedly, the increase in the number of regular payers is also contributed by actions in which customers are offered to pay off their debt in fixed monthly installments, with the suspension of further calculation of default interest and compulsory foreclosure measures... The total cost of EPCG, when taking into account all the benefits given to consumers during 2021 , will amount to around 10 million euros.
Workers are missing, they are preparing a new systematization
How many workers are employed in EPCG, what is the average salary? Are there redundant employees, how many workers are in administration and how many in production, and do you plan to do a new systematization of jobs? Could there be salary adjustments?
In the first 6 months of the current year, EPCG recorded good business results... We must continue like this in the future, with mutual respect for all 980 employees in our company. The average salary is around 860 euros. In FC Proizvodnja (400) and FC Supply (215), 615 people are employed, while the rest of up to 980 are related to other directorates, including the directorate for development and electricity trade. It is important to note that previously the workforce was set up for the maintenance of three production facilities, where a large number of overtime hours were recorded, which is the first sign of an insufficient number of executors. For the new energy facilities that we strive for and for the work on their development and maintenance, the existing structure is insufficient and cannot meet the task. Proof of this is the participation of one and the same engineers in the project teams of various development projects, as well as the need for the engagement of external personnel in order to compensate for the deficiency and enable the smooth maintenance of the work process. So, the fact is that in EPCG, viewed from the aspect of development needs, there is a shortage of manpower. But even so, when we talk about the numbers, according to the situation from the previous month, EPCG employed 2 less executors than in the same period of the previous one, and 18 less compared to the same period in 2019. I'm talking about data that includes hired interns, executors through agencies, persons with disabilities, as well as over 25 employees who do not work due to temporary disability. Due to all of the above, the Company is already working on a new organizational structure and systematization, in accordance with the needs of the company and in compliance with the collective agreement. The intention is also to form a special directorate for renewable energy sources... EPCG will, without any doubt, be a generator of the state's development, and the energy sector will soon provide hundreds of jobs precisely thanks to the strong investment cycle. Wage correction is something that cannot be a unilateral act, since, among other things, there are obligations to respect the collective agreement. Also, when you take into account the specificity of the activity that EPCG is engaged in, it is clear that we have no intention to, through ill-advised activities on the subject plan, bring the company into a situation where it would lose professional staff, especially since we now have the problem of bringing some credible experts back to system, since in some foreign companies they earn earnings significantly higher than what we could offer them.
Bonus video:
