Decision on construction of first large hydroelectric power plant by end of year

The public debate on the draft National Energy and Climate Plan has been completed. The strategic document should offer important answers of national interest - when will the Pljevlja Thermal Power Plant be definitively closed and which new large power plants will be built to replace it

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Now that the Pljevlja TPP is on hiatus, the entire system is supported by two hydroelectric power plants: HPP "Piva", Photo: Svetlana Mandić
Now that the Pljevlja TPP is on hiatus, the entire system is supported by two hydroelectric power plants: HPP "Piva", Photo: Svetlana Mandić
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The public debate on the draft National Energy and Climate Plan ended on Friday, and according to information from the Ministry of Energy, the report from the public debate with the final draft of the plan could be published in the next two months, while the first large hydroelectric power plant to be built will be known by the end of the year.

This strategic document of the Ministry of Energy and Mining should offer important answers of national interest - when will the Pljevlja Thermal Power Plant be definitively closed and which new power plants will be built to replace the TPP - the current main source of electricity in Montenegro both in terms of production volume and in another, no less important segment, stable production and maintaining balance in the energy system.

The Pljevlja TPP was built in 1982, and since then Montenegro has not had any new large sources of electricity.

Reversible power plants necessary for the operation of solar and wind power plants

The draft document foresees 2041 as a possible year for the Pljevlja thermal power plant to cease operation, and that it is impossible to compensate for its operation without two large hydroelectric power plants, which would operate on a reversible principle, along with a large number of new solar and wind power plants. Reversible hydroelectric power plants operate on the principle of connection with solar and wind power plants, enabling system stability when there is not enough sun and wind, because then they produce electricity by releasing water from the reservoir, while in periods when there is excess electricity in the system from solar and wind power plants, they preserve the reservoirs and even use the excess electricity to pump water back into the reservoir.

The Plan states that the documentation and preparation are most advanced for the “Komarnica” and “Kruševo” hydroelectric power plants, although they state that there is a dispute because they are partially located in protected natural environments. “Komarnica” would be an accumulation power plant with the possibility of coordination with solar and wind power plants, and “Kruševo” should be reversible. The “Komarnica” hydroelectric power plant should be completed in 2032, and “Kruševo” in 2033, so that the “Pljevlja” thermal power plant can gradually reduce production and completely cease operation by 2041 at the latest.

The document indicates that in the European Union, coal-fired power plants will pay a special fee starting next year, and that the Government of Montenegro will try to postpone this obligation until 2030. The introduction of this fee would mean a significantly higher price for electricity from thermal power plants. According to this document, the state-owned EPCG and private investors will invest two and a half billion euros in new hydro, wind and solar power plants by 2035.

Increased construction of hydroelectric power plants worldwide

The Electric Power Company told "Vijesti" that the NECP envisaged a whole series of activities and measures aimed at reducing greenhouse gas emissions (GHG emissions) and respecting the international obligations that Montenegro has undertaken.

"New investments are necessary, both for EPCG and for the state of Montenegro itself. Let us recall that in addition to significant investments in the field of RES (investment in new solar and wind projects and reconstruction of existing hydropower plants, which EPCG is successfully implementing, in cooperation with renowned international partners), valorization of hydropower potential and electricity production are one of the most important priorities for the development of EPCG. New hydropower plants are important in order to ensure technical reliability and stability of the power system, as well as the integration of a significant number of planned solar and wind power plants, especially in the new circumstances contributed by the energy crisis and the increase in the price of electricity on the international market," the company stated when asked by "Vijesti" what the deadline is for a decision to be made on the construction of these or other large hydropower plants, in order to enable a timely replacement for TPPs.

They state that a very large number of reversible hydropower plants are under construction or development in the world, and that the importance of building new hydropower plants is reflected in enabling the production of renewable, portable energy with low CO2 emissions; in providing significant water reserves, flood protection, and irrigation support; in contributing to improving the quality of life and business conditions in the local community; and in contributing to providing long-term sources of income.

Decision on the Kruševo HPP by the end of the year

They recall that earlier this year, the Kingdom of Norway enabled the construction of new hydroelectric power plants in order to reduce the impact of climate change, by adopting a bill in the Norwegian parliament that allows the construction of hydroelectric power plants on protected rivers.

"It should be noted that at this very moment, the project to build the reversible HPP 'Linberg 3', with a capacity of 480 MW, is being implemented in Austria, as well as a number of other large HPPs around the world that are very important for a just transition and the implementation of the green agenda. Within the framework of the cooperation envisaged by the signed Memorandum of Understanding with EDF, the construction of the HPP 'Kruševo' has been recognized as one of the priority projects. We expect that Montenegro and the Republic of France will make the appropriate decisions necessary to create the legal framework for the further implementation of the project and the construction of the HPP 'Kruševo' during this year," EPCG stated.

Maybe Montenegro will get an exemption from the tax on coal emissions until 2030.

When asked whether and when the so-called carbon tax on electricity generated from coal, which will be in effect in the EU from next year, will be introduced in Montenegro, how would it affect the work and operations of EPCG and whether it could increase the price of electricity in Montenegro next year or in a longer period, EPCG responded that Montenegro can request an exemption until 2030.

Starting next year, the EU is introducing special fees for electricity producers from coal and other energy sources with high gas emissions, through the so-called Cross-Border Carbon Adjustment Mechanism (CBAM).

"Regarding the application of the CBAM mechanism, let us recall that a national regulation related to CO2 emissions is already in force in Montenegro and that the relevant EU regulation provides for the possibility of exemption from the application of the CBAM mechanism until 2030 for countries in the region (WB6) until the implementation of the EU ETS system in 2030. This is certainly an important topic that is the subject of continuous activities of both the Government itself and all countries in the region, on which final decisions will be made in the coming period," EPCG stated.

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