Focus on Energy, 2010 - Karanovic & Nikolic

MONTENEGRIN ENERGY SECTOR – OVERVIEWElectric Energy SubsectorOVERVIEWThe production of electric power in Montenegro includes power plants with a total installed power of847 MW, out of which 76% of this power is produced by two hydro power plants (“HPP”) “Perućica”and “Piva”, and 24% from the thermal power plant (“TPP”) “Plevlja”. All Montenegrin power plants areoperated by the public enterprise “Elektroprivreda Crne Gore” (“EPCG”) which is the only producer ofelectrical power in Montenegro.The Montenegrin power system has approximately 322,420 customers. The electricity sector in Montenegrois highly dependent on imported electricity since domestic production is insufficient to providefor domestic consumption needs. Domestic generation is largely based on hydro electric power.The Montenegrin power transmission system consists of 1,257 km long power lines of 400, 220 and 110kV respectively. It is connected with neighbouring countries through 9 interconnecting lines. The entiretransmission system is operated by the public enterprise “Prenos a.d.”The Montenegrin distribution system consists of 18,556 km of distribution lines. A significant issue is thehigh losses of power that occur when electricity is transported through the distribution system (22.8%of the total power transported through the distribution system was lost in 2007). The distribution systemis operated by EPCG through its wholly owned subsidiaries which act as system operators for thedistribution grids in the regional centres. There are 16 regional centres in total.69Due to very low level of energy efficiency the Montenegro’s energy consumption is very high.The totalelectricity consumption in Montenegro in 2008 amounted to approximately 4,584 GW/h (4,646 GW/hin 2007).The Montenegrin infrastructure for the production of electricity is very outdated (The HPP plant atPerućica has been in operation since 1960, the HPP in Piva has been in operation since 1976 and the HPPplant located in Pljevlja has been operating since 1982) and is in desperate need of modernization.DEVELOPMENT PRIORITIESThe “Montenegrin Energy Development Strategy for 2025” was issued by the Government of Montenegro(the “Government”) in 2007 and it sets out projects to be realized in the electric energy subsector.FOCUS ON ENERGYThese include: Zlatica (238 MW in total); efficient projects.Coal SubsectorOVERVIEWCoal is the most significant energy resource in Montenegro. Coal reserves are located in both the Pljevljaand Berane basins. The coal reserves at the Pljevlja basin are estimated to be 184.5 million tons. At the