The Electric Power Company of Montenegro (EPCG) has completed and officially taken over the feasibility study on the construction of gas-fired power plants in Montenegro, which analyzed the possibilities of building plants with a capacity of 50 to 400 megawatts at several locations - in Bar, Podgorica, Pljevlja and Nikšić.
The study, prepared by the consulting firm SS&A Power Consultancy, showed that all considered variants are technically feasible and economically viable, with estimated investments ranging from 233 to 362 million euros, depending on the power plant's capacity and the method of gas supply.
EPCG told "Vijesti" that further development of the project depends primarily on securing a stable source of gas and decisions that will be made in cooperation with the Government and the Ministry of Energy, in the context of the broader state energy strategy and the recently signed Memorandum of Cooperation with the Japanese company JERA, which envisages the development of a special study on the LNG (liquefied petroleum gas) terminal and gas-fired thermal power plant in Montenegro.
PORT OF BAR, KAP AND PLJEVLJA
By decision of the Board of Directors of December 3, 2021, the state-owned energy company launched a new investment project, namely the development of a Study with the development of technical solutions and a preliminary feasibility study for gas-fired power plants in Montenegro. This study also included the analysis of the following scenarios - a hybrid power plant based on a gas turbine with a capacity of at least 50 megawatts near the Port of Bar with potential renewable sources, a combined gas-fired power plant with a capacity of at least 150 megawatts within the vicinity of the KAP complex in combination with potential renewable sources, and a gas-fired power plant with a capacity of up to 200 megawatts in Pljevlja.
"The study included a preliminary analysis of gas-fired power plants in the range of 50 MWe, 75 MWe, 150 MWe, 200 and 400 MWe at several possible locations in Montenegro - Bar, Podgorica, Pljevlja (in the free zone of the existing Pljevlja TPP), Nikšić. Locations where the construction of gas-fired power plants is possible have been identified and from a feasibility point of view it is clear that there is space, both for power plants of the planned capacities, and for power plants with a total power of 400 MW with the case of air cooling, which requires the largest area. Technical solutions based on the most modern gas turbines have been analyzed," the state-owned energy company said.
MORE OPTIONS FOR GAS PROVISION
EPCG explained that the basic prerequisite for the further development of gas-fired power plants is the provision of gas, which has been analyzed in detail in this study.
"The conclusion is that there are various options for supplying gas, starting from potential offshore deposits, through the possibility of importing gas via Serbia, LNG options in the Port of Bar and finally the Adriatic-Ionian gas pipeline. Variant solutions have been analyzed for all individual locations, depending on the source of gas supply. The estimated value of investments, in the power plant power ranges from 150 to 400 MWe and depending on the method of gas supply, range from 233 million euros to 362 million euros. Ultimately, all of the above options have proven to be cost-effective in the reference scenario. EPCG will make further decisions regarding the possible use of gas in Montenegro in cooperation with the Government of Montenegro and the relevant Ministry of Energy and Mining," EPCG said.
COOPERATION WITH THE JAPANESE
The company recalled that the Government signed a Memorandum of Understanding with the Japanese company JERA Co. Inc. Japan on cooperation in the field of energy on September 10, 2025.
"The Memorandum is based on the mutual intention to conduct a comprehensive feasibility study for the development, procurement, construction, management, maintenance and financing of an LNG terminal and an associated gas-fired thermal power plant in Montenegro. This study should demonstrate realistic possibilities and options for further implementation of the project, including technical, economic, financial and regulatory aspects. Its preparation represents a key step in making future strategic decisions and possibly concluding final binding contracts. EPCG will provide all necessary support to the Government of Montenegro and the Ministry of Energy and Mining in the future process of cooperation with the renowned Japanese company JERA Co. Inc.," the company said.
The tender documentation for the open public procurement procedure for the preparation of this study was published on December 30, 2021, and after the procedure and evaluation of the submitted bids, the first-ranked bidder was selected, with whom the Service Agreement “Preparation of a study with the development of technical solutions and a preliminary feasibility study for gas power plants” was signed on June 17, 2022. This is the consultant “SS&A Power consultancy AG” from Switzerland.
The energy company previously told "Vijesti" in response to the question of when and on what basis EPCG came up with the idea to enter this project, explaining that the use of gas as a transitional energy source in the energy transition process is an idea that can be found in many EU countries, as well as that the exploration of the Montenegrin seabed in search of oil and gas and the many meetings that were held at the recommendation of the then Ministry of Capital Investments, were the reason for the company to begin preparing a study that would provide the necessary framework techno-economic data, especially in the part related to the energy facility that would accompany the potential construction of gas infrastructure.
The proposed power plant concepts aim to enable long-term use of local resources for a period of at least 25 years and in full compliance with EU climate rules and regulations.
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