Geological exploration works for the construction of the Kruševo hydroelectric power plant (HPP), financed by the Electric Power Company of Montenegro (EPCG), have begun, EPCG announced, adding that this marks the beginning of a new phase in the preparation of one of the most important energy projects in Montenegro.
It is stated that the works began in accordance with the Contract for the development of the project and the execution of detailed geological works, signed on November 29 between EPCG and the Jaroslav Černi Water Management Institute.
"The implementation of these works, financed by EPCG, begins a new phase in the preparation of one of the most important energy projects in Montenegro, thus creating the prerequisites for the parallel implementation of all necessary activities within the project," EPCG said in a statement.
The official commencement ceremony was attended by the Chairman of the Board of Directors of EPCG Milutin Đukanović, the Executive Director of EPCG Ivan Bulatović, the Minister of Energy and Mining Admir Šahmanović, and representatives of EPCG management.
The President of the Board of Directors of EPCG, Milutin Đukanović, said at the ceremony marking the start of the works that the green transition is a great opportunity for Montenegro and its citizens.
"Today we are starting one of the fundamental and capital projects that means a lot for Montenegro, and therefore for EPCG. Since we took over the management of EPCG, from 2022, we have established a clear vision for the development of the energy sector," said Đukanović.
He emphasized that the trust of the world's most important financial institutions and partners in the projects implemented by EPCG is the greatest possible recognition for the company's work and dedication.
"When the world's strongest financial institutions and partners show confidence in the projects implemented by Elektroprivreda Crne Gore, it is the greatest possible recognition," said Đukanović.
He reminded that wind and solar sources are so-called variable sources of electricity, and that the development of such sources must be accompanied by strong development of battery systems.
"At EPCG, we are fully aware that the development of these sources must be accompanied by the development of energy storage capacities. I am confident that we will devote ourselves to this in the coming period," said Đukanović.
He added that Montenegro can hardly create a more competitive product than electricity and that the green transition is not only an opportunity for EPCG, but also for the entire country and its citizens.
"The more sources of electricity we have, the more we will be able to achieve the essence of our work to provide citizens with affordable electricity prices, and new investments will also mean new jobs. In this way, we demonstrate the meaning and purpose of our existence," concluded Đukanović.
The Executive Director of EPCG, Ivan Bulatović, emphasized that the Kruševo HPP is one of the priority projects in the field of hydropower within the National Energy and Climate Plan of Montenegro, which confirms its strategic importance for energy security and sustainable development of the country.
He reminded that EPCG, through expertise and continuity in planning, has demonstrated the ability to manage complex and demanding processes.
"After adopting the Study on the Utilization of the Hydropower Potential of the Piva River Downstream of the Piva HPP, we determined that the Kruševo project has all the technical and economic prerequisites to become one of the pillars of the future power system of Montenegro," said Bulatović.
According to him, the planned installed capacity is 82 megawatts, annual production is around 170 gigawatt-hours, while the investment value is approximately 160 million euros.
As Bulatović pointed out, the start of geological research also marks the beginning of the first concrete phase of project implementation.
"I would especially like to emphasize that EPCG is financing these works entirely independently, because we want to speed up the process and have all activities run in parallel, without waiting. In the energy sector, where each project takes years, speed and continuity are of invaluable value," said Bulatović.
He also emphasized the international dimension of the project, recalling the signing of a Memorandum of Understanding with the French company EDF, one of the global leaders in the field of energy.
"EDF sees a serious partner in Montenegro, and EPCG recognizes in EDF the experience, expertise and stability that are crucial for the successful implementation of large investments," concluded Bulatović.
The Minister of Energy and Mining, Admir Šahmanović, said that the start of geological works on the Kruševo Hydroelectric Power Plant project represents a moment of particular importance for Montenegro and a new phase of energy development.
"This moment has great symbolism, because it marks a new phase of energy development in Montenegro. Almost half a century has passed since the construction of the last large Piva hydroelectric power plant. Today we are opening a new chapter," said Šahmanović.
He emphasized that energy today is the backbone and driver of the modern economy, and that the interest of foreign investors confirms the growth of confidence in the Montenegrin energy sector.
"The interest of foreign investors in Montenegro, the signed memoranda and agreements show how great our potential is and that a large investment cycle is coming. It is also a signal that energy is becoming the most profitable business today and that every country that wants stable growth must invest in its energy system," said Šahmanović.
According to him, Montenegro has a chance to position itself as a leader in the region.
"A country that uses its natural resources, but develops them responsibly, modernly and in accordance with the highest environmental standards," said Šahmanović.
As stated in the EPCG press release, the Kruševo Hydroelectric Power Plant construction project has been recognized as one of the priority projects in the field of hydropower within the National Energy and Climate Plan of Montenegro (NECP).
As they reminded, on September 20th last year, EPCG signed a Memorandum of Understanding with the French company EDF, one of the global leaders in the field of energy.
"This document establishes a framework for long-term cooperation in the field of energy transition and hydropower, with a special focus on the Kruševo HPP project," the statement said.
It is added that the Interstate Agreement between Montenegro and France creates a legal framework for the continuation and formalization of cooperation between EPCG and EDF, which further strengthens the international partnership in the development of sustainable energy.
"In the coming period, EPCG, in cooperation with international partners, will work on confirming the optimal technical solution, while considering the possibility of building a reversible hydroelectric power plant (Pump Storage HPP), and preparing the technical documentation necessary for the implementation of the Kruševo hydroelectric power plant project," the statement said.
As it is emphasized, the beginning of geological exploration for the Kruševo HPP does not only mark the start of one phase of the project, but also symbolizes the beginning of a new energy era for Montenegro, in which the power of natural resources is transformed into long-term stability, development and a secure future.
"EPCG, together with partners and state institutions, continues to build the foundations of a green and energy-independent Montenegro," the statement concludes.
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