Total investment investments Electric companies (EPCG) last year amounted to 47.308.879 euros, which is four times more than in 2021, when 11.753.380 were invested.
Of the total investments last year, almost half related to the purchase of the industrial complex of Nikšić Željezara.
This was shown by the officially available Report on the State of the Energy Sector for 2020 prepared by it Regulatory Agency for Energy and Regulated Utilities (REGAGEN), of which he is the chairman of the Board of Directors Branislav Prelevic.
The regulator noted that the production capacities of this state-owned company remained at the same level last year as in 2019, and that significant progress in the realization of investments took place in 2023, when the energy company received a loan from the European Bank for Reconstruction and Development (EBRD ) for financing the wind power plant "Gvozd".
Almost 12 million invested in production
"In December 2022, a contract with "Toscelik Alloyed Engineering Steel" was concluded and an advance in the amount of 20.423.173 euros was recorded, while the purchase and sale process was completed in 2023. Since the realization of this investment was not preceded by the publication of a business plan, a profitability analysis and/or a cost-benefit analysis, and that EPCG did not submit the requested information, the effects of the investment even upon REGAGEN's request for information on the objective, expected benefits for the company and for customers could not be seen at the time of writing this report", states the regulator.
As for investment in production, last year EPCG invested 11.751.332 euros, i.e. 25 percent of total investments, of which the most significant investments relate to the ecological reconstruction of the Thermal Power Plant "Pljevlja", the capital overhaul of unit A3 in the hydroelectric power plant "Piva" and the installation of block transformer T1 -T5 and reconstruction of the cooling system in the "Perućica" hydroelectric plant.
"In addition, 7.345.488 euros were invested in the Directorate for Renewable Sources (15% of total investments), i.e. in the Solar 3000+ and Solar 500+ projects, which relate to the installation of photovoltaic systems and small power plants on individual buildings," it says in report.
7.178.600 euros (15% of total investments) were invested in projects within the Directorate for Development and Engineering. The most significant investments within this part of EPCG related to investments in modernization and extraordinary maintenance of HE "Perućica" (3.707.289 euros), HE "Piva" (1.582.139 euros), TE "Pljevlja" (1.472.321 euros).
"Having in mind that the provision of sufficient amounts of energy needed for the life and work of citizens and economic entities and their supply in a safe, reliable and high-quality manner, as well as energy development is recognized by the Energy Law as a public interest, and that the energy crisis has put it in the first plan, precisely the necessity of valorizing own energy sources, it is advisable to direct efforts and available resources into investments in new production capacities. In order for this to be possible, it is necessary to ensure and maintain the financial stability of the company, i.e. to perform energy activities based on the principles of efficient and economical use of resources and profitable business, as required by the Law on Energy", assessed the regulator.
CEDIS invested 7,4 million
Through the profitable operation of companies that are majority owned by the state, in addition to the financial ability to invest in energy development, money can be provided, which the state as the owner, through competent institutions, could direct to the protection of vulnerable categories of society, as European developed countries have done. countries.
"Commitment to the valorization of one's own energy sources and the achievement of energy and climate goals requires careful and detailed project preparation, timely involvement and informing the public about the possibilities of resource valorization, effects (positive and negative) and profitability of individual projects, continuous inter-institutional cooperation aimed at achieving goals, but and solid political support. This is necessary in order to facilitate the implementation of projects through the use of financial support provided by the EU through numerous mechanisms", the Agency pointed out.
When it comes to Montenegrin electric distribution system (CEDIS), this energy company last year had total investments of 14.772.750 euros, of which 7.415.745 refer, as explained by the regulator, to investments that were foreseen for 2022 according to the Updated Investment Plan, and the remaining amount (7.357.005 .XNUMX) on investments whose realization was foreseen for previous years.
"So, CEDIS realized about 21% of the planned investments for last year. After the realization of investments related to the exploitation of the submarine interconnection between Italy and Montenegro, the Montenegrin Electric Transmission System (CGES) realized revenues from the allocation of cross-border capacities in the course of 2022, which are twice the revenues realized in 2021, and almost 14 times higher compared to the average realization of these revenues in the period before the exploitation of the submarine interconnection (years 2016-2019). The mentioned positive effects from the realization of investments are transferred to the users of the system, i.e. customers, through the regulatory mechanisms that are in place", the report stated.
As stated, from 2017 to 2022, a total of about 180 million euros was invested in the electricity distribution network, and in the period from 2017 to 2020, a significant share of the realized investments were investments in measuring points and an advanced electricity measurement system of energy, while from 2020 to 2022, the revitalization of the medium-voltage and low-voltage distribution network has the largest share in total investments.
Problems of CGES
Last year, CGES planned 41 investments worth 24.317.000. The approved investments were realized in the amount of 9.053.000, ie 37% of the planned. In addition to the investments whose realization is planned for 2022, CGES also realized 4.254.280 investments approved for the previous period.
"Investments include electricity transmission system development projects aimed at providing safer, more reliable and better quality electricity transmission services, as well as providing conditions for the connection of new production facilities. Planned investments for the year 2022 can be divided into investments related to the construction of new or interventions on the existing electrical transmission infrastructure, then investments related to telecommunication and management infrastructure, investments resulting from the need to replace elements whose operational life has threatened safe operation of the same and investments that belong to the so-called "Smart grid" projects, the goal of which is the optimal operation of the transmission system", states the regulator.
The main reasons why the realization of CGES investments in 2022 is lower than the plan concern the lack of spatial planning documents, tender procedures that required more time than planned (preparation of tender documents, selection of contractors, appeals in the procedure).
"In addition, the need for changes to public procurement plans due to rising prices of materials and works on the market, solving property-legal issues, problems with the purchase of land and infrastructure, conducting tenders, as well as terminating contracts with designers due to non-compliance with contractual obligations", it was stated in document.
Realized EPCG investments in the period from 2016 to 2022 did not result in a significant increase in production capacities, which range from 869,95 megawatts in 2016 to 877,38 megawatts in 2022.
Almost half a billion for the transmission and distribution system since 2011.
Since the introduction of incentives for investments for regulated companies - CEDIS and CGES, as of 2022, investments in the transmission and distribution system with a total value of about 459 million euros have been realized, of which about 257 million refer to investments in the distribution system, and about 202 million for investments in the electricity transmission system.
"The regulatory frameworks that were in force in the mentioned period ensured the possibility of realizing significant investments in the transmission and distribution system, along with the stability of prices for the use of the system, the so-called "network fee", which is part of the bill for consumed electricity. In addition to the investment of almost half a billion euros, in the period from 2011 to 2022 there was a slight increase in the "network fee" (of the average household bill with two-tariff metering in 2011, the network fee was 12,02 euros, and in 2022, 13,24 .52,3 euros), and the share of the "network fee" in the total average bill decreased from 49,17% to XNUMX%," the report states.
The main reasons why the realization of CGES investments in 2022 is lower than the plan concern the lack of spatial planning documents, tender procedures that required more time than planned (preparation of tender documents, selection of contractors, appeals in the procedure)...
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