Pljevlja Thermal Power Plant (TE) annually produces electricity worth one billion euros, and if it were not for it, the business of Elektroprivreda Crne Gore (EPCG) would be threatened, especially in the current conditions when significant amounts of electricity are imported.
In an interview with "Vijesti", the executive director of EPCG, Nikola Rovčanin, claims that, and states that there would be a significant increase in the price of electricity if the TE stopped working.
How much TE means for the power system, he points out, is also shown by the fact that it produces five out of a total of seven gigawatt-hours of electricity, which is the total daily production in Montenegro, that is, about 70 percent.
He states that the Piva Hydroelectric Power Plant currently produces 1,5 gigawatt-hours per day, and the Krnovo and Možura wind farms produce 0,5.
"It is difficult to imagine a system in today's circumstances without TE. If the TE stopped working as advocated by individuals, there would have to be a significant increase in the price of electricity for consumers, or the state would allocate significant subsidies under the EPCG, and most likely a combination of these two scenarios. EPCG's operations would also be threatened in that case. The importance of the Thermal Power Plant can be deduced from this. Today, the annual production of TE Pljevlja is worth close to 1 billion euros. Today, I don't hear those who advocated its shutdown last year. Some have changed their minds overnight, while others have withdrawn and are silent. I am proud that we won the victory with persistence, argumentation and defended the work of TE, and time has shown that we were right", said Rovčanin.
Abandoning the second block is a 500 million mistake
Time, he points out, has shown that the biggest mistake of the previous governments was abandoning the construction of the second unit of the TE.
"If Montenegro now had a second block of thermal power plants, at least 500 million euros per year would flow into the state budget at these prices and they would have sources for their own consumption. A truly unforgivable mistake and perhaps one of the biggest in recent history, which was missed when all the conditions for its construction existed".
He states that EPCG imported electricity in August at an average price of 465 euros per megawatt-hour, for which 45 million euros were allocated per day, or XNUMX million per month.
"Compared to previous years, the quantities are similar, but the prices are ten times higher, which is a huge burden on EPCG's finances. In June, July and August, EPCG imported more than 100 million euros of electricity. In July of this year, 36.436.000 euros of electricity was imported, and for the entire year 2020, the value of imported energy was 31.292.000 euros. So, in this example, you can clearly see the disruption in the market and the financial expenses suffered by EPCG, which will cause negative effects in business in the third quarter, but I expect that the fourth quarter, when surpluses and export potential are justifiably expected, will remedy the negative effects of the third quarter and achieve the company's profit”.
There are no import problems, but there may be some
Rovčanin claims that EPCG has no problems with the supply of electricity for now, but that they cannot rule out that possibility either "because circumstances may arise that do not depend" on that company.
"Problems can occur all over Europe, so Montenegro will not be spared either. For now, we have no problems with energy procurement, and we are slowly entering the fourth quarter, where we expect surpluses for export".
The company headed by him does not plan restrictions if the dry period continues, he says, and "will introduce them only in case of extreme emergency, that is, sudden damage to facilities.
He states that the production from hydroelectric power plants has failed for 8 months, and is at the level of 73 percent of the plan, while the reservoirs are about 115 gigawatt-hours less than planned.
"Due to the lack of production from hydropower plants and high prices, EPCG set aside significant amounts for the import of electricity (163 million euros). We hope that in the rest of the year we will return the accumulations to the plan and export certain quantities. We are witnessing an extreme drought that has hit the region and Europe. These are circumstances that we definitely cannot influence".
Solar potential a big chance
Rovčanin warns that EPCG is hostage to the fact that no energy facility has been built for 40 years, which, he says, is devastating.
He points out that it is of crucial importance to get new facilities and new megawatts as soon as possible.
"It is precisely the summer period when consumption is highest, when we import the most, when it is the tourist season, the time of year that we must pay attention to... Montenegro has incredible solar potential. If we succeed in installing a sufficient number of solar power plants in the coming years and in that way, instead of importing in the summer, we have enough for domestic needs, but also for export, we would achieve energy independence in full capacity".
He points out that "for a rapid energy transition, strong support from the state, an unburdening administration and more liberal legislation is necessary."
It is unacceptable to wait several months for various types of documents for an energy facility, to request dozens of different permits, certificates, etc. for a single power plant for households. Therefore, investing in energy should be the number 1 national goal, and there should not be allowed any administrative barriers that slow down and inhibit. For EPCG, every day, every hour is important. In August, we imported 1,5 million euros per day, so you can see how much it costs us just one day of delay in a document, and thus the delay in putting an energy facility into operation".
One hundred million for energy projects in Pljevlja
Rovčanin points out that EPCG will allocate around 100 million euros to energy projects in Pljevlja this year and next.
"These are huge investments that are the largest in importance and value in the past decades. The eco-reconstruction of the thermal power plant is worth about 70 million euros, the construction of HPP Otilovići more than 5 million, the heating of Pljevlja - 2,5 million EPCG and 7,5 million from the Public Works Administration, the reclamation of the Maljevac landfill, the installation of solar panels for households as part of the Solari 3000+ project And 500+ on more than 100 registered households, a new building in the city center that will exceed 500 euros with reconstruction".
When asked when work will begin on the construction of a small hydropower plant on the reservoir in the village of Otilovići in Pljevlja, Rovčanin said that it also depends on the speed of the state administration.
"With the Minister of Capital Investments, I signed a concession agreement on the use of water from the Otilovići reservoir for the construction of a small hydroelectric power plant. It is a significant step in the project. We are now expecting a planning document and UT conditions from the Ministry of Ecology and Spatial Planning, which will provide the prerequisites for issuing a public call for the selection of contractors and the development of the main project. Therefore, this project also depends on the speed of the state administration, and that is why my appeal is that the state must deal with the issues and dynamics of building construction with special attention and with the highest priorities. Millions are lost every day, every hour of delay costs both EPCG and the state citizens".
EPCG has announced a tender for the heating of Pljevlja, and the opening of bids is on September 9.
Rovčanin claims that the realization of the first phase of heating is planned for this year, and the complete project for 2023.
"The value of the public procurement of the first phase is 2,5 million euros and includes: preparation of the Main Project for all three phases, i.e. about 4,5 km of primary heat pipe with a diameter of DN 450 mm from TE Pljevlja to Milet bašte and about 1,5 km of secondary network, heat pipes with a diameter of DN 80 mm to DN 200 mm needed to connect the largest boiler houses in the city center and extinguish the largest chimneys, with a heat capacity of 10 megawatts. The construction of the first phase of the primary heat pipe with a diameter of DN 450 mm in a length of 2,3 km from the Pljevlja Thermal Power Plant to the intersection of the main road Pljevlja - Podgorica and Aleksandra Vukovića Street. This primary heat pipe as well as the heat exchange station as part of the Ecological Reconstruction are planned for a total heat consumption of 44 megawatts and EPCG is also implementing additional projects (Regulated removal of steam from the turbine worth around 1.000.000 euros), with the aim of providing all the necessary consumption for all citizens Pljevlja and the realization of the Heating of Pljevlja, which has been waiting for over 30 years".
The Municipality of Pljevlja, he notes, will, after the design of the first phase, in cooperation with the relevant Ministry, determine the planning documentation for the second and third phases, depending on the spatial changes on the route of the heating pipes or the locations of the planned substations, other capital projects on the territory of Pljevlja.
"Confirmation of the success of the project is the last activity of the Public Works Administration of Montenegro and the change of the procurement plan for 2022 from the planned 7,5 million euros for the completion of the project based on the investment value from the Conceptual Decision. The main project will give the exact estimated values after the revision by 1.12. In 2022, and with the positive opinion of the Ministry of Finance, a tender for the construction of the second and third phases of the primary and secondary heat pipes can be expected."
They "don't think" about electricity price increases
At the moment, Rovčanin claims, EPCG is not thinking about increasing electricity prices for citizens.
"I note that EPCG affects only the part of the bill that concerns active energy, the rest is VAT and network services. The state determines the amount of VAT by law, and the Energy Regulatory Agency determines losses on the network, which, as I am informed, will be decided at the beginning of December. Also, EPCG stimulated savings by providing a 13 percent discount on the total bill for households that consume less than 500 kilowatts, and there were more than 170.000 of them in the previous month."
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