Montenegro will lack 881 GWh of electricity this year, due to the planned break in the operation of the Pljevlja Thermal Power Plant, which has been in operation since April, and the poor hydrological year. The TPP will be online next month and will operate throughout 2026 without a break, which, along with the opening of new wind and solar power plants next year, will create a surplus for export of 400 GWh.
This is stated in the draft decision on the energy balance for 2026, which was submitted to the Government.
The missing quantities of electricity this year were purchased by Elektroprivreda from imports, both in advance and during this year, at prices that were more than double the price they receive from consumers, which is why a loss of 60 to 70 million euros was expected this year. Around 27 percent of the electricity consumed came from imports.
Total electricity production this year is estimated at 2.418 GWh, while final consumption is expected to be 3.292 GWh. Production was 1.035 GWh lower than in 2024.
The expected production from the Thermal Power Plant this year will be 500 GWh, while in 2024 it was 1.337 GWh. Below-average rainfall this year also caused a drop in electricity production from the hydroelectric power plant, which amounted to 1.525 GWh, while in 2024 it was 1.755 GWh.
The plan was not met even for production from the solar power plant, because instead of the expected 113 GWh, 76 were produced. Wind power plants produced 311 GWh, while 326 were expected.
In the coming year, total electricity production is expected to amount to 3.798 GWh, while consumption is estimated at 3.400 GWh.
The thermal power plant is expected to produce 1.299 GWh, and all hydropower plants 1.846. The inclusion of the state-owned Gvozd wind power plant into the system is planned for early next year, so this type of power plant is expected to produce 455 GWh, or 145 more than this year.
Next year, new solar power plants are expected to be connected, so their total annual production will increase from 76 to 198 GWh.
"In 2026, the Gvozd wind farm with a capacity of 54 MW is planned to be put into operation. EPCG has also planned the successive commissioning of commercial solar power plants, the total capacity of which at the end of the year would be around 84 MW. The implementation of the Solari 5000+ project will continue, which will provide new power, which, together with the already implemented Solari 3000+/500+ projects, will provide a power of around 105 MW at the end of 2026. Several commercial solar power plants of private investors are in trial operation and construction, the total power of which by the end of 2026 would be around 25 MW. If the planned projects are implemented, the installed power of solar power plants would increase significantly, which should be around 215 MW at the end of 2026. With the implementation of the planned power plants, the total available power of all power plants at the end of 2026 should be 1.320 MW," the energy balance proposal states.
Due to new wind and solar power plants, the structure of electricity production sources will change significantly next year.
Of the total electricity production in the coming year, 48,6 percent will come from hydroelectric power plants (with average hydrological precipitation), 34,2 percent from thermal power plants, 11,98 percent from wind power plants and 5,21 percent from solar power plants. Now 65,8 percent of the electricity produced will come from sustainable sources (water, wind, sun) and 34,2 percent from production based on environmentally harmful coal combustion. Long-term energy plans foresee the shutdown of the thermal power plant by 2041, and in order to replace that production by then, a mix of new electricity sources must be built.
In 2019, 50,18 percent of electricity came from hydroelectric power plants, 41,1 percent from thermal power plants, 8,69 percent from wind power plants, and 0,03 percent from solar power plants. The total production at that time was 3.382 GWh, while the planned production for the following year is 410 GWh higher, thanks to the growth in production from wind and solar power plants.
The Perućica Hydroelectric Power Plant is expected to produce 920 GWh next year, which is 16 percent more than this year, when production was lower due to a poor hydrological year. This hydropower plant will not operate next year in August due to a planned overhaul.
750 GWh are expected from the Piva HPP next year, which is 32 percent more than this year, due to expected precipitation based on the average for that part of Montenegro.
Total production from all small hydropower plants, including those owned by the state-owned EPCG and private investors, is planned at 176 GWh, which is about 6,1 percent more than this year.
The private wind farms Krnovo and Možura are expected to generate 201 and 127 GWh next year, while the Gvozd wind farm, owned by the state-owned EPCG, is expected to generate 126 GWh and should start operating at the beginning of next year.
The planned electricity production from solar power plants for 2026 is 198 GWh.
"The planned production represents a multiple growth compared to the previous period, and is based on the completion of the customer-producer projects, solar 3000+, 500+ and 5000+ with a total capacity of over 100 MW, the planned commissioning of several power plants by EPCG at the locations of Kapino Polje, Željezara, Vrtac dam and Slano dam with a total capacity of around 84 MW and several commercial power plants in private ownership. Solar power plants will have a total capacity of around 215 MW," the energy balance plan states.
Network losses significantly lower than in 2019
Total electricity losses are expected to amount to 458 GWh, of which 145 in the distribution network and 312 GWh in the transmission network (including the underwater cable to Italy).
In 2019, total electricity losses amounted to 506 GWh, of which 356 GWh related to distribution and 150 GWh to the transmission network.
Losses in the distribution network, despite the growth in consumption, have been reduced by 60 percent, thanks to the modernization of the network and the fight against illegal connections and electricity theft. Technical losses in the distribution network, which refers to three voltage levels of 35, 10 and 0,4 KV, must exist because part of the electricity is lost during transformations between voltage levels. Losses are greater if transformers and other devices are older.
Transmission losses have doubled, mostly due to the commissioning of the cable to Italy with a transformer station at the end of 2019, but also due to increased traffic on the transmission network. Here, a significant amount is lost for real technical reasons that arise from the conversion of direct current electricity (transmitted by submarine cable) into alternating current, which is injected into the system.
The Energy Regulatory Agency, when setting prices, accepts only a portion of justified technical losses, and even that is gradually decreasing. The companies that manage the transmission (CGES) and distribution networks (CEDIS) must purchase the amount of these losses on the market and compensate the system.
Consumption growth among distribution consumers offset consumption decline at KAP
Energy balances show a significant increase in electricity consumption among distribution consumers, especially households.
Distribution customers (households, small and medium-sized enterprises, institutions,... all those who use the distribution network) consumed 2.341 GWh in 2019, of which households themselves consumed 1.290 GWh.
In the coming year, distribution customer consumption is forecast at 2.895 GWh, which is 554 GWh or 23,6 percent more. Households are expected to consume 1.576 GWh in 2026, which is 286 or 22 percent more.
The largest consumers in 2019 were the Aluminum Plant with 560 GWh and the Iron and Steel Plant with 34,6 GWh.
These former giants, now with symbolic production, will have only about three percent of their consumption next year from six years ago - KAP with 10,4 GWh and Željezara with 4,75 GWh.
The growth in electricity consumption among distribution customers completely offset the decline at the Aluminum Plant.
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