Montenegro is entering the most intensive investment cycle in its energy history, but the energy transition process must be strategically considered and based on real capacities, said Ivan Bulatović, Executive Director of the Electric Power Company of Montenegro (EPCG).
At the beginning of the first panel on the second day of the MICEB 2025 conference in Budva, held under the title Shaping the Future of Sustainable Energy: Experiences from ELES and EPCG, he said that the Montenegrin power system is stable.
"But if we want a safe and sustainable transition, we must not make hasty decisions, especially when it comes to abandoning existing thermal springs without providing alternatives," Bulatović emphasized, according to Media biro.
At a conference organized by the Faculty of Economics, Bulatović presented key projects implemented by EPCG, such as the Gvozd and Gvozd2 wind farms, new solar plants in Nikšić, the use of the Steelworks infrastructure, the modernization of the Perućica HPP, a tender for battery systems...
"By the end of the year, we will be able to connect 100 new megawatts from renewable sources - for an electricity system of our size, that is a huge step forward," said Bulatović.
Decarbonization with a pragmatic approach
Warning that the Western Balkans must invest around 33 billion euros for full decarbonization, Bulatović pointed out that Montenegro cannot shoulder this burden alone without additional EU assistance. He particularly emphasized the importance of the ecological reconstruction of the Pljevlja thermal power plant, which will ensure compliance with European regulations and continuity of supply.
"We cannot shut down existing capacities until we have the technical and market ability to balance the system. Relying on imports is not sustainable – neither technically nor strategically," he said.
Infrastructure and regional connectivity
Speaking about energy connectivity, Bulatović recalled the importance of the submarine cable with Italy, as well as the future connection with Serbia via the Pljevlja-Bajina Bašta transmission line. He pointed out that Montenegro faces the challenges of implementing the European CBAM mechanism, which threatens to further burden the export of electricity from coal.
"The introduction of CBAM without prior harmonization of infrastructure and markets would lead to the loss of competitiveness of our energy capacities," Bulatović warned, calling on the EU to provide the region with an exemption or a transition period. He particularly praised the Kruševo and Komarnica HPP projects, with Kruševo defined as a reversible power plant in cooperation with the French EDF.
"Pumped-storage systems are the most efficient form of battery balancing at a time of high penetration of renewable sources," said Bulatović, expressing regret that Montenegro did not implement projects like Buk-Bijela earlier. He believes that energy is a development opportunity for Montenegro.
"If Austria and France can find a compromise between ecology and development - so can we," Bulatović concluded.
Mervar: Real transition instead of idealism
The CEO of Slovenian ELES (Elektro-Slovenija, doo – the national transmission system operator of Slovenia), Aleksander Mervar, followed up with a presentation on the challenges facing the EU in the transition towards renewable sources.
He pointed out the lack of technical solutions for balancing a system based on solar and wind, if an adequate electricity grid has not been built beforehand, and warned that Europe must not neglect the development of the transmission network.
ELES, as a key institution for the stability and security of the Slovenian electricity system, is responsible for the management, maintenance and development of the high and very high voltage network, as well as for balancing electricity production and consumption in real time.
As Mervar pointed out, the company has invested a billion euros in the transmission network and infrastructure in the last 15 years, of which 150 million came from EU and other funds.
He presented the SynchroGrid, GreenSwitch and TUN projects, as well as an innovative system for dynamic assessment of the thermal capacity of transmission lines, already launched on the Australian and Canadian markets.
Mervar assessed that the EU's energy strategy is based more on economic interests than on sustainable ecology, and said that "no country should blindly copy other people's models."
He also warned of the contradictions of European energy policy, stating that while nuclear and thermal power plants are being shut down, investments are being made in new gas capacities.
Mervar expressed skepticism towards "green hydrogen", stating that current concepts are unsustainable in practice, and warned of the pitfalls of copying foreign models without taking into account national specificities.
He particularly emphasized that the energy strategy must be based on reality, not illusions.
He advised Montenegro to "pay attention to decarbonization," because there is a lot of coal in the Pljevlja Mine, and the Montenegrin system would have a hard time accepting hasty decisions.
The panel concluded with the message that Montenegro must continue with the green transition, but with a realistic, technically and financially sustainable approach.
Both Bulatović and Mervar agreed that transmission system operators play a key role in the stability of energy flows, and that strategic planning is the only way to ensure long-term security, competitiveness and environmental sustainability.
The discussion emphasized the importance of regional cooperation, smart investment, and flexible European policies that will recognize the specificities of smaller systems like Montenegro's.
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