For the Electric Power Company of Montenegro (EPCG), market integration is an extremely important process, which opens up numerous opportunities for the development of both the state-owned power company and the private sector, said the executive director of the power company, Ivan Bulatović.
"The market merger will enable us to create new products: a daily market, market balancing services, and better portfolio and product valuation," said Bulatović, emphasizing that this creates more stable and attractive conditions for investors.
At the panel discussion Electricity Market Integration and CBAM: Preparing Energy Companies for the Future, as part of the ESG Adria Summit held in Tivat, he reminded that the strategic decision on market interconnection has already been made at the Government level, while negotiations between regulators, system operators and stock exchanges of Montenegro and Italy are already underway.
Bulatović, however, pointed to the technical challenges ahead, estimating that the first possible date for digital market integration could be the end of next year or the beginning of 2027, while full implementation is expected only by the end of 2036 or the beginning of 2037.
He also stated that EPCG is entering a significant investment cycle with a clear strategic focus on renewable energy sources, which includes transforming part of its production from thermal power plants to more sustainable sources. He particularly highlighted the contribution of the newly adopted legal acts of the Ministry of Energy, which relate to incentives for renewable sources and improving energy efficiency.
"The process is demanding and long-term, but the first indicators are encouraging and give us grounds for optimism," said Bulatović, announcing EPCG's readiness to respond to the challenges of the energy transition.
These messages were the introduction to the continuation of the conversation that followed the very next day, when a round table was held as part of the ESG Adria Summit on the topic of Integration of the Electricity Market and Carbon Prices - Preparing Utilities for the Future.
The meeting was held at the Maritime Institute in Tivat, where EPCG leaders were joined by key regional and international actors in the energy scene.
The panel was chaired by Bulatović, Director of the Energy Community Secretariat Artur Lorkowski, and Director of KfW Bank for South-Eastern Europe and Turkey, Klaus Martin Muller.
Participants agreed that completing the market coupling process and advancing decarbonization remain key priorities for establishing a competitive, integrated and sustainable energy system in the region. It was emphasized that power utilities must become drivers of change in the decarbonization process, and a structured dialogue between power utilities was identified as key to addressing challenges such as security of supply, system flexibility and investment needs.
Special attention was paid to the mobilization of financial support from EU instruments, international partners and the private sector, as a prerequisite for a successful energy transition, with the conclusion that the continuation of the dialogue on decarbonization financing is crucial for the coherence and predictability of investments in the region.
Speaking about the importance of such meetings, Bulatović stated that the meeting of all key stakeholders in the region's energy sector was extremely successful, especially in light of the imminent introduction of the CBAM mechanism, which is scheduled to begin on January 1st next year.
The gathering was also welcomed by the Minister of Energy of Montenegro, Admir Šahmanović, the Minister of Energy of North Macedonia, Sanja Božinovska, the General Director of EPS, Dušan Živković, the General Director of ERS, Luka Petrović, the Director of EPHBH, Sonja Sušac, representatives of the EBRD, EIB, as well as the managers of EPCG.
"EPCG remains committed to leading the regional energy transition, continuing on the path of sustainable development and integration with the European energy market, with strategic partnerships and continued reform efforts," the statement concluded.
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