The total investments of Elektroprivreda (EPCG) last year amounted to 42,66 million euros, which is about 4,7 million less than the year before, when 47,3 million euros were invested.
Of that sum, 16,13 million refers to renewable energy choices, 15,2 million was spent on production, 11,9 million was invested in development and engineering....
This was shown by the officially available Report on the State of the Energy Sector for 2023 prepared by the Regulatory Agency for Energy and Regulated Utilities (REGAGEN), whose Board of Directors is Branislav Prelevic.
Eight million for the reconstruction of HPP "Perućica".
"Regarding the investments made in production during 2023, a total of 15.270.303 was invested, of which the most significant investments relate to the ecological reconstruction of the Pljevlja TPP (12,46 million), while the rest of the money was invested in the overhaul of transformer block 2T1 in HPP 'Piva', reconstruction of HPPs 'Rijeka Mušovića', 'Lijeva Rijeka', 'Šavnik', 'Rijeka Crnojevića', 'Podgor' and reconstruction of the cooling system in HPP 'Perućica'. In addition to the aforementioned investments, during 2023, 16.135.428 euros were invested in the Directorate for Renewable Sources, 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. states the regulator.
In projects within the Directorate for Development and Engineering, the most significant investments within this unit of EPCG related to investments in the reconstruction and modernization of HPP "Perućica" (8.046.109), reconstruction and modernization of HPP "Piva" (429.396) and investments in the continuation of the project for the use and phased reclamation of the "Maljevac" landfill in the "Pljevlja" TPP (556.474).
"The remaining investments within the Directorate for Development and Engineering of 2.162.055 relate to the preparation of technical documentation and the preparation of conceptual projects, analyzes and studies in connection with the following projects of VE 'Gvozd', HPP 'Komarnica', HPP 'Kruševo', SE " Slano Dam' and 'Vrtac Dam', SE 'Vilusi', gas power plants. The total funds invested in the VE project 'Gvozd' during 2023 amounted to 1.081.042. The breakthrough came with the signing of the corporate loan agreement between the EBRD, EPCG and the project company 'Green Gvozd' for the financing of the implementation of the VE project 'Gvozd'. The loan in the value of 82 million represents the largest loan that this bank has realized in Montenegro, and the money provided by this loan will enable the financing of the purchase, construction and operation of a new onshore wind power plant with a capacity of 55 MW in the vicinity of the village of Gvozd in the Municipality of Nikšić, the construction of which would accelerated decarbonization and energy transition of Montenegro. In addition to this investment, EPCG analyzes new opportunities for the construction of wind farms, under whose attention are located in several municipalities in the north of the country (Nikšić, Šavnik, Žabljak, Kolašin, Bijelo Polje, Mojkovac and Pljevlja)", the report says.
Property relations and public procurement reduced CEDIS investments
When it comes to the Montenegrin Electric Distribution System (CEDIS), this energy company last year had, according to the regulator, a total investment of 14.517.681 euros, while for that year they were approved for an investment of 36,87 million euros.
"In addition to investments whose implementation is planned for 2023, CEDIS also invested 4.762.635 euros, based on investments whose implementation was foreseen in other investment plans for previous years. In addition to these investments, in 2023 CEDIS bought electricity infrastructure worth 4.730.988 euros planned for 2023, as well as infrastructure worth 140.999 euros planned for previous years. "Investments in the primary, secondary network, AMR and measuring devices and other basic assets were realized at a lower value than planned, mainly due to problems in solving property-legal relations and implementing public procurement procedures," the report explained.
4.046,71 GWh of electricity was produced last year and, according to the regulator, it can be seen that the production of TE "Pljevlja" is dominant in the energy mix and represents 37,64 percent of the total
Of the 4.730.988 euros related to the purchase of the infrastructure of CEDIS, 2.616.866 were spent on 12 plants (35kV) that are part of the distribution system and are located in the facilities of the Montenegrin Electric Transmission System (CGES), on the basis of which the handover was carried out and delimitation of assets.
"The lower level of realization of the purchase, according to CEDIS, is due to the multi-year problem of the infrastructure owners' inability to provide the prescribed documentation for the purchase, and then a significant jump in the estimated value of the infrastructure compared to the planned one," the report states.
Problems of CGES
CGES, as the operator of the electricity transmission system, invested 39 million of the 31 investments approved by the Agency for the last year in the amount of 11,5 million euros.
"In addition to investments whose implementation is planned for 2023, CGES also invested 727.493 euros, based on 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 connecting new facilities for electricity production. The main reasons why the realization of investments in 2023 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, the need to change public procurement plans due to rising material prices and works on the market), solving property-legal issues, problems with the purchase of land and infrastructure and conducting tenders", the report states.
Since the introduction of incentives for investments, by the end of 2023, investments in the system with a total value of about 513 million euros have been realized, of which about 282 million euros refer to investments in the distribution system, and about 231 million euros to investments in the electricity transmission system .
"The aforementioned investments were realized with a slight increase in the prices for using the system. In 2011, the network fee amounted to EUR 12,02, which represented 52,3 percent of the total average electricity bill for households with two-tariff metering, while in 2023 it amounted to EUR 13,60, i.e. 48,94% of the total average electricity bill energy for the specified category of customers. Therefore, despite the investment of half a billion euros, in the period from 2011 to 2023, there was a slight increase in the network fee, and its share in the total average bill decreased," the report stated.
At the end of 2023, the electric power system of Montenegro included 50 power plants and 21.628,94 kilometers of transmission and distribution network spread over the entire country, serving a total of 435.618 customers.
Solar power plant "Čevo" is the only production facility connected to the system after 2021.
Last year, SE "Čevo" with an installed capacity of 3,25 mw was put into trial operation, to which the Agency issued a license for the production of electricity this year, making it the only production facility connected to the power system of Montenegro after 2021.
"2.386 new customers-producers were connected to the distribution system, which brings this category to a total of 2.632 customers-producers with an installed capacity of 13,77 MW. At the end of 2023, the total installed power of all power plants in Montenegro, including customers - producers, amounted to 1.067,238 MW", the regulator states.
According to the data from the report on the power mix of Montenegro, in the total installed production capacity, hydropower plants take a share of 66,05% (704,904 MW), thermal power plants - 21,08% (225 MW), wind power plants - 11,06% (118 MW) , and solar power plants - 1,81% (19,334 MW).
"In Montenegro, the production of electricity primarily depends on hydroelectric power plants, which have recorded an increase in production during 2023," states the regulator.
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