The reconstruction of the Pljevlja Thermal Power Plant will be completed in 2025, and due to the final works, it will not work for six to seven months. Then the energy system will lack 500-600 gigawatt hours of electricity, and Elektroprivreda expects that several solar power plants and wind power plant (VE) "Gvozd" will be completed by then, which would reduce this lack. EPCG expects to have a net profit of over one hundred million euros this year.
The executive director of the company said this in an interview with "Vijesta". Nikola Rovčanin.
Is the reconstruction of the Thermal Power Plant Pljevlja progressing according to the planned dynamics and when do you expect it to be completed? When will there be a break in the operation of the thermal power plant due to these works and how long will it last?
The reconstruction of the "Pljevlja" thermal power plant is proceeding according to plan, we expect it to be completed during 2025, when a longer shutdown of the mentioned plant will be planned, lasting 6-7 months. So far, about 44% of the value of the contract has been realized. This is one of the most significant projects of EPCG, because after its implementation, the Pljevlja Thermal Power Plant will meet all the criteria prescribed by EU directives for this type of facilities, which will ensure the stability of the country's energy system.
How many megawatt hours of electricity will be missing to supply consumers during the break in the operation of the TE, and how do you plan to provide that amount?
Considering that TE "Pljevlja" has a regular stoppage due to overhaul for two months every year, the stoppage in 2025 will be 4-5 months longer than usual, so in 2025 EPCG will have around 500-600 GWh less production. It is planned that part of that production will be replaced by production from hydroelectric power plants and entering this period with the highest possible level of accumulations.
EPCG is also developing several solar projects, as well as VE "Gvozd", which we expect to enter the grid before the big stoppage of the TE. Part of the energy will certainly be provided from imports, and we cannot know the total value at this moment, because the prices of electricity on the stock exchange change daily. We also expect that by 2025 the prices of electricity on the market will stabilize and that EPCG will overcome without major problems the period of major downtime of the Pljevlja Thermal Power Plant due to the connection to the operation of ecological plants.
What are the company's business results for the first eight months of this year?
The preliminary business result of EPCG AD Nikšić for the eight months of 2023 was reported as a profit in the amount of 75 million euros, which is about 130 million euros better than the business result achieved (-55 million euros) in the same period of the previous year in 2022.
In the eight months of 2023, 869.410 MWh of electricity was exported at an average price of 149,59 euros/MWh, with a value of 130,05 million euros, and in the same period of the current year, 337.428 MWh of electricity was imported at an average price of 143,31 EUR/MWh, in the value of EUR 48,36 million.
What result do you expect the company to end the 2023 business year with?
It is very difficult and ungrateful at this moment to project the results of operations at the end of 2023, because it will depend on a number of circumstances in the remaining period of the current year, such as: hydrological conditions, level of reservoirs, technical correctness, availability and utilization of capacities, opportunities for market, price movements on the electricity exchange...
However, bearing all this in mind, and based on the existing business results and the state of technical readiness and availability of production facilities, with average hydrological conditions and respectable prices on the stock market until the end of the current business year, with a caring and dedicated attitude of the administration, management and all employees in EPCG should expect to achieve record business results that could reach and even exceed a profit of 100 million euros.
How are the preparations for the announced investment projects progressing - Wind Power Plant "Gvozd", HPP "Otilovići" and SE "Briska gora"?
After the agreement and then approval by the Board of Directors of EPCG and the Assembly of Shareholders of EPCG, the Agreement on a corporate loan in the amount of 82.000.000 euros for the financing of the construction of the VE "Gvozd" and the necessary infrastructure for connection to the electric power system of Montenegro without the anticipated participation of investors, was signed on June 19.06.2023, 24. between the European Bank for Reconstruction and Development (EBRD), the Electric Power Company of Montenegro (EPCG) and the project company "Green Gvozd". The loan agreement provides for a XNUMX-month grace period during construction, so essentially the project will pay for itself.
All tender procedures are conducted on the EBRD's electronic Procurement Portal (ECEPP) in accordance with the applicable rules and guidelines of the European Bank for Reconstruction and Development.
The tender for the procurement, delivery, installation and commissioning of wind generators and long-term maintenance is in the evaluation phase of technical offers submitted by selected companies based on the qualification part of the tender procedure, which was opened on 14.08.2023 August XNUMX. years.
The signing of the contract for the supply of wind generators is expected by the end of 2023.
So far, the construction permit for the access roads, the construction permit for TS 33/110 kV Gvozd, as well as the main construction permit for VE "Gvozd" (wind turbines, plateaus, underground medium voltage 35 kV and optical network, internal transmission lines DV 35 kV) have been obtained. 24.07.2023 .2024. After the signing of all contracts, it is expected that the main works on the realization of the VE "Gvozd" project will begin in the spring of XNUMX.
After the decision of the Government of Montenegro at the session held on July 27.07.2023, 3. year, the Government of Montenegro issued a conclusion issuing the urban planning and technical conditions for the construction of the MHE "Otilovići", which finally created the conditions for the realization of this important project, both for EPCG and for the city of Pljevlja itself. The preparation of the tender for the construction of the MHE "Otilovići" with the preparation of the main project and the study on environmental impact assessment is in the final stage and it is planned to be announced during the next month. MHE "Otilovići", with a power of about 11,5 MW and an estimated annual production of about XNUMX GWh, will be put into operation within two years from the date of signing the contract.
Changes and additions to the spatial plan of the Municipality of Ulcinj under the jurisdiction of the Ministry of Ecology, Spatial Planning and Urbanism are underway. For the further development of the project, it is necessary that the Spatial Plan be adopted in order to issue the urban-technical conditions necessary for the preparation of project documentation and further development of this project.
By the end of 2023, in cooperation with the German development bank KfW, it is expected that a tender will be announced for the installation of the A8 unit with a power of 58,5 MW as part of the reconstruction and modernization project of HPP "Perućica" phase II.
Public procurement for "Solari 5000+" in progress
Has there been a standstill in the "Solari" project and if so, why? When can we expect the continuation of the project? So far, how many mini solar power plants have been installed on the roofs of the houses of individuals and legal entities?
So far, photovoltaic panels have been installed on a total of 2.944 buildings, with a consumer power of 28,3 MW, so the project has been implemented at a level above 95%.
The public procurement procedure by stages for the new 5000+ project is underway. We are legally obliged to conduct public procurement for inverters, panels and other equipment. In addition, it is necessary to rank, sign mutual contracts, deliver the goods and perform reception in the EPCG warehouse. Due to all the procedures, the indicated process takes longer, so we believe that this is what inspired the impression of the current halt in implementation, but the most important thing is that the project is implemented very successfully. There is no need to talk about its benefits for citizens, the state and EPCG.
The Pljevlja heating project is nearing completion, work will begin in the spring of 2024.
How is the Pljevlja heating project progressing? When is it expected to be completed?
The Pljevlja heating project is in the final stage of the main project. We expect that the main project will be completed and revised by the end of September this year, and that by the end of October we will obtain a building permit for the construction of the first section. In the same period, the Administration for Capital Projects of Montenegro will announce a tender for the selection of a contractor for the execution of works on the second and third sections of the already completed main project.
By the end of this year, preparatory works will be carried out and pipes for the first section of the heat pipe will be procured, and in the spring of 2024, we are planning the main construction works on excavations and the laying of pipes for the primary heat pipe. The project, which was awaited for 40 years, is becoming a reality, and its importance for Pljevlja and the improvement of the environment needs no special mention.
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