The Pljevlja Thermal Power Plant (TPP) will be out of operation from next week until mid-November due to the completion of environmental remediation. In order to maintain the stability of the energy system and supply to customers, the Electric Power Company (EPCG) imports electricity worth 90 million euros, at a price of around 100 euros per megawatt, while receiving 45 euros per megawatt from consumers. EPCG states that they are therefore not yet considering increasing prices. Due to the break in operation, the Rudnik Uglja Thermal Power Plant (RUP) will lose 48 million euros, and they are now looking for another buyer for coal during that period.
These are the main consequences of the ecological reconstruction of the largest Montenegrin electricity producer. Energy companies and the Government expect that the reconstruction will persuade the Energy Community to allow the operation of the Thermal Power Plant for another 15 years, during which time Montenegro would have to find a replacement for the power plant that provides half of the required electricity, but also ensures the stability of the energy system as a stable source that does not depend on nature.
The reconstruction of the TPP is also the basis for the future district heating of Pljevlja, which will further reduce air pollution in this city.
Such a long break in the operation of the largest Montenegrin power plant will cause a deterioration in trade and increase the deficit, as electricity has been the main export product for the past three years. This will also cause a decrease in the growth of the Montenegrin economy, i.e. gross domestic product (GDP).
EPCG confirmed to "Vijesti" that the Pljevlja Thermal Power Plant will most likely cease electricity production on March 31st and will be out of operation for seven and a half months due to the final works on the ecological reconstruction of the Pljevlja block.
Due to the shutdown, EPCG will not be able to count on electricity worth around 90 million euros, which would have been produced at the Pljevlja thermal power plant during that period, while the Coal Mine will be left without 48 million euros in revenue, given that it sells over 93 percent of its coal to the only Montenegrin thermal power plant.
So far, they have purchased 75 percent of the missing electricity.
EPCG has already provided about 75 percent of the required amount of electricity, worth about 60 million euros, on the market, and Rudnik will try to alleviate the negative financial balance by selling coal for general consumption. Both companies say that due to the downtime and reduced income, they will not reduce employee salaries.
EPCG emphasizes that the company has purchased 600 GWh of electricity worth 60 million euros for the current year, which is about 75 percent of the needs foreseen in the Energy Balance. The electricity was purchased at an average price of about 100 euros per megawatt-hour (MWh),
The remaining missing quantities for the third quarter (July, August, September), around 200 GWh, will be purchased during the second quarter, and part of it through operational trading month by month.
When asked by "Vijesti" how much money EPCG will lose due to the months-long standstill in the operation of the Pljevlja TPP, EPCG responded that this was questionable.
"It should be borne in mind that we sell electricity to end consumers at an average price of 45 euros per MWh, while the market price is around 100 euros per MWh. TPP Pljevlja produces around 140-150 GWh per month, with a monthly market value of around 15 million euros. During the outage, EPCG will not have electricity worth around 90 million euros available," the company announced.
Despite the large difference between the market price and the price at which consumers are supplied, EPCG assures that "for now, they are not planning to increase the price" of electricity.
93 percent of equipment delivered
"EPCG has already informed the contractor of its full readiness for the Pljevlja TPP to enter a total standstill on 31 March 3, if the contractor demonstrates unconditional and absolute readiness in terms of complete documentation, full availability of necessary equipment, associated materials and workforce for continuous execution of works on all three projects starting from 2025 April 1, in accordance with mutually agreed dynamic plans, taking into account all aspects and possible risks on their part, for the smooth implementation of projects related to the quality and dynamics of the performed works, especially the final deadline for completion of projects and the first synchronization to the Pljevlja TPP network on 4 November 2025," states EPCG's response to questions from "Vijesti" about the deadlines for the beginning and end of the pause in the operation of the TPP.
They claim that 93 percent of the equipment has been delivered so far, a large part of which has already been installed, and the rest will be delivered to the TPP by the end of June in accordance with the agreed schedule.
"All planned equipment has been shipped from China according to plan. Containers with construction equipment-tools arrived in Montenegro - Port of Bar, on 18. 3. 2025, while it arrived at the facility on 19. 3. 2025. Containers with 'pennguard' materials are expected at the Port of Bar on 6. 4. 2025. Also, the arrival of personnel/labor to the facility is underway these days (refers to the adaptation of the internal lining of the chimney). All equipment and materials have been delivered to the construction site, except for one part of the equipment that will be delivered after signing the annex and contract for the adaptation of the boiler," the largest Montenegrin company responded.
Reconstruction of 69,8 million
The cost of the ecological reconstruction of the Pljevlja Thermal Power Plant, including the adaptation of the boiler and the adaptation of the internal lining of the chimney, is 69.810.458 euros excluding VAT. The reconstruction contract was signed in June 2020, and the main contractor is the Chinese company “DEC International”, its subcontractors from Montenegro are “Bemax”, “BB Solar” and “Permonte”.
"A total of about 70 percent of the contracted value for ecological reconstruction and about 40 percent of the contracted value for boiler adaptation have been realized so far. 50.669.793,47 euros including VAT were invoiced, and after the advance payment and the retained amount were deducted, 38.734.517,40 euros were paid," EPCG stated.
The shutdown of Montenegro's only thermal power plant will seriously threaten RUP's business, given that over 93 percent of its production is sold to EPCG for the needs of the thermal power plant. The next seven and a half months will be challenging for RUP, also due to the fact that during the shutdown, the Rudnik thermal power plant will have to implement a multi-million-dollar project to relocate the Ćehotina riverbed.
The most difficult year for Rudnik
Rudnik says that 2025 will be the most difficult and demanding year for the company and the Montenegrin power system.
"We are aware that, due to the implementation of two important investment projects that need to be completed this year, the relocation of the Ćehotina riverbed and the ecological reconstruction of the Pljevlja thermal power plant, the year ahead will not be a year of results. The ecological reconstruction of the Pljevlja thermal power plant is planned to last eight months. This will cause 48 million euros less revenue for the Mine due to the suspension of coal deliveries," the company told "Vijesti".
This year would not be accompanied by so many challenges, the RU claims, if the project to relocate the Ćehotina riverbed had not been delayed in the previous period, "due to the UT conditions from 2019 under which the project could not be implemented."
"Therefore, we accelerated the works, and after obtaining the permit, the new management started the works and tender procedures in order to complete this extremely important project on time, which ensures the further stable operation of the Pljevlja Thermal Power Plant and the RUP. Due to the importance and speed of the project implementation, we expect to soon complete all tender procedures so that the selected consortium can start work as soon as possible, because the project must be completed in a significantly shorter period of time in coordination with the ecological reconstruction project by the end of the 2025 construction season. Last year, in order to reduce the project costs, the Coal Mine independently and successfully carried out works worth 2,96 million euros," the Coal Mine claims.
They are trying to find buyers for the coal.
They did not specifically answer the question of whether they had secured alternative markets for the sale of coal during the months-long shutdown of the Pljevlja Thermal Power Plant, whether and with whom a contract for the export of coal had been concluded, and at what prices they plan to sell the coal.
"During the ecological reconstruction period, stable financing of RUP will be ensured by activating the sale of coal for wide consumption with minimum contracted quantities of 200.000 tons, so we will try to generate as much revenue as possible with other third parties on the market and try to reduce the negative balance. RUP will also sign a four-year coal sales contract with EPCG, which will enable advance withdrawal of funds during the overhaul period, which will be sufficient for stable operations. We will try to reduce the advance collection of funds to the lowest possible level, and we hope to compensate for the missing funds by implementing the recently presented Just Transition Plan through Business Transformation. We will also use this period to increase the overburden, i.e. prepare the terrain for easier coal mining, so that this year the overburden is planned to be a record amount of eight million cubic meters of solid mass," the Mine responded.
The Board of Directors of EPCG recently elected the Director of the Pljevlja Thermal Power Plant Zarko Cacic, a graduate electrical engineer. Until recently, the director Mirko Mazalica After more than three years at the helm of the Pljevlja Thermal Power Plant, he resigned on February 11th.
The mine also develops other activities
The coal mine is preparing to earn money from other activities during the shutdown of the thermal power plant, but also for later if it is shut down in 15 years due to EU requirements.
They also said that upon completion of the overhaul, the asphalt base, which they recently leased from the bankrupt company "Vektra Jakić", will be ready to cover the needs for asphalt in the territory of the municipality of Pljevlja during this construction season.
"In addition to the work it is carrying out on the project to relocate the Ćehotina riverbed, the construction department is also participating in a public call with the Eco Fund, and is also employed through projects with EPCG worth over half a million euros, so we are in negotiations about other jobs that the aforementioned group can perform. Also, the adaptation of the premises and preparations for the launch of the production of personal protective equipment, the primary production of which will be directed to the needs of our company, are underway, and the plan is to expand the market. We have begun the reconstruction of the departments, increased the operability of the mechanization, reduced the number of breakdowns and ultimately, we are doing everything we can to rationalize operations without changing costs on wages. As we have mentioned, in accordance with the EU recommendations on just transition, we are developing new activities that will enable us to adequately engage the existing workforce in real jobs. Despite the aforementioned challenges, the management of the Coal Mine has clearly defined investment goals for the future successful development of the RUP and the energy sector," they claim in the Coal Mine.
There will be no salary cuts despite the drop in revenue
The Electric Power Company assures that workers will not have their wages reduced during the months-long shutdown. TE “Pljevlja” employs 165 permanent workers and 17 temporary workers. The average net wage of employees at TE “Pljevlja” is around 1.550 euros.
"The EPCG collective agreement defines that, in the event of a work stoppage through no fault of the employee, or an interruption of the production process in the company that occurred through no fault of the employee, the employee is entitled to compensation in the amount of 90 percent of the average salary earned in the previous half-year. No reduction in salaries is planned during the TPP shutdown," EPCG responded.
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