Focus on Energy, 2010 - Karanovic & Nikolic

Berane basin, coal reserves are estimated to be 158 million tons. However, due to the lack of exploration,the total known reserves are only 18.5 million tons.DEVELOPMENT PRIORITIESThe Montenegrin Energy Development Strategy by 2025 issued by the Government in 2007, sets out thefollowing projects which should be realized in the coal subsector:(500 MW);Oil and GasMontenegro imports all its oil and gas requirements. According to certain exploration activities performedby the Montenegrin company “Jugopetrol a.d.” Kotor (its largest shareholder is the Greek company“Hellenic Petroleum”), there are indications that Montenegro may have oil and gas reserves in thebasin of the Adriatic Sea. Further exploration will be required to confirm if this is indeed the case.70FOCUS ON ENERGYMontenegro does not have a gas infrastructure nor does it have access to international gas sources.Montenegro’s access to international gas sources is entirely dependent on the future development ofthe gas infrastructure in neighbouring countries such as Serbia, Croatia, and Albania. Montenegro couldconnect to the planned Croatian gas pipeline running from Vrbovsko to Split which has the potentialfor an extension to Dubrovnik. The proposed construction of this extension to Dubrovnik (to whichMontenegro could connect) is still far from certain and it is still being examined by the relevant Croatianauthorities. Furthermore, if a proposed international pipeline connecting Italy and Greece is indeed constructed,this could then open the door for both Albania and Montenegro to connect to this network inthe future. However, it is estimated that the Albanian network would not be in a position to connect toany potential Montenegrin gas network for at least another decade.District Heating SystemAt the moment, there is no central heating system in Montenegro. The Montenegrin Energy DevelopmentStrategy proposes the installation of a district heating system in Pljevlja. In the city of Pljevljaand its surroundings there are significant numbers of decentralized coal boilers that are used for heatingwhich are operated by individual households or public utility companies. Upon the installation ofa central heating system in Pljevlja, the consumption of coal and its impact on the local environmentwould be reduced significantly. In particular, it is estimated that such a project would lead to savings ofapproximately 80 GWh per year.District heating systems are also designated for the following locations: Pljevlja, Nikšić, Bjelo Polje, Cetinjeand Berane under the Montenegrin Energy Development Strategy proposals. It also provides for theinstallation of a district heating system in Podgorica which would powered by the incineration of citywaste. This would be performed in a power plant constructed for that specific purpose. District heatingin Kolašin, Žabljak and Plužine may also be installed on the basis of waste combustion or from the useof biomass fuels.Renewable Energy SourcesHYDRO ENERGYMontenegro has significant potential when it comes to hydro electric power. This is true with regard tothe construction of both large and small HPP’s. There are plans provided by the Montenegrin Energy DevelopmentStrategy for the construction of several new large HPP’s each with a capacity ranging from 50MW to 600 MW along with several smaller HPP’s with energy capacities up to 10 MW. The total power