The Electric Power Company of Montenegro (EPCG) has canceled a tender worth 58.080.000 euros including VAT for the procurement of two modern battery energy storage facilities (BESS), whose installation was planned at the Nikšić Ironworks, because it did not receive approval for a loan to finance this project.
This is stated in the Decision on the Annulment of the Tender, which "Vijesti" has access to and which was signed by the Executive Director. Ivan Bulatović.
"Economic entities are not entitled to any compensation for damages, reimbursement of costs, lost profits, or any other claims against the contracting authority (EPCG) on this basis," the document states.
The state-owned energy company "Vijesti" officially told the media yesterday that the bidder had not received the requested approval from the Ministry of Finance until yesterday.
When asked what the justification for refusing consent was, the answer was that the explanation suggested that the ministry was reserved about granting positive consent to EPCG's request until the Pljevlja Thermal Power Plant returned to production.
"It is known that EPCG had a large electricity deficit in the current year due to the planned shutdown of the TPP in order to complete the TPP ecological reconstruction project, the implementation of which has been ongoing for several years, and the boiler adaptation and chimney adaptation subprojects. Accordingly, EPCG expects positive positions from the Ministry of Energy and the Ministry of Finance on relaunching the tender for BESS immediately after the TPP "Pljevlja" is put into operation. The competent Ministries of Energy and Finance have assessed that it is necessary to wait for the TPP "Pljevlja" to return to the production process and EPCG, as a responsible company, respects the position of the Government and its ministries," the state energy company said.
The TPP was disconnected from the grid on April 1st of this year due to environmental reconstruction and is scheduled to be reconnected on November 15th. The aim of the TPP Pljevlja environmental reconstruction project is to construct a facility to adapt its operation to the conditions prescribed in the legislation of Montenegro and the European Union directives (IED Directive 2010/75/EC) regarding the protection of air, water and soil.
The state-owned energy company said that by introducing BESS plants, EPCG will be able to more efficiently manage electricity surpluses and shortages.
“Storing energy during periods of low prices (or high RES production) and releasing it into the grid when prices are higher will enable significant financial savings and generate additional revenue. BESS plants will also reduce the need for expensive electricity imports during peak periods and optimize the operation of existing power plants,” the company said.
These are systems with a total capacity of 240 MWh, which will enable a more stable electricity supply, faster integration of renewable sources and greater energy independence. Each plant will have a power of 30 megawatts (MW) and a capacity of 120 megawatt-hours (MWh), which amounts to a total of 240 MWh of storage capacity.
"Vijesti" asked in August whether EPCG had secured the full amount of around 58 million euros and from what sources (own funds, loans, European funds) for this investment.
"There are many domestic and foreign banks, as well as funds that are interested in financing the construction of BESS facilities, since this is a new technology that contributes to better valorization of energy from renewable sources. Business practice in EPCG is that investment projects are not financed from its own funds, but from loan funds, and that loan repayment begins when the facilities start operating, and in this way, the loan is repaid from profits," EPCG said.
The Serbian Electric Power Company conducted a feasibility study for the construction of battery power storage facilities, which confirmed the technical and financial feasibility of the project.
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