Focus on Energy, 2010 - Karanovic & Nikolic

that could be achieved if the total hydro potential of Montenegro’s main water currents is exploited isestimated to be in the region of 9,846 GWh. The Montenegrin Energy Development Strategy statesthat Montenegro is exploiting less than 1,800 GWh which represents a capacity of 18% of its estimatedpotential. Nevertheless, it should be noted that the Tara River is located in the national park Durmitor,which is on the UNESCO’s World natural heritage list. Accordingly, the construction of HPP facilitieswould have to be performed in a manner that would not have an adverse impact on the Tara canyon orthe Tara basin.SOLAR ENERGYMontenegro has excellent solar energy potential. Montenegro is exposed to between 1,500 to 2,500hours of sunshine annually. It is particularly sunny at the coastal towns of Bar and Ulcinj.WIND ENERGYWind energy potential is relatively low in Montenegro. The projected wind energy capacity of Montenegrois estimated to be 400 MW including 100 MW in the most attractive regions of the country locatedat the coast and around elevated areas near Nikšić.BIOMASSForest land covers 42% of the Montenegrin territory. This equates to 6.750 km2. The available woodpotential is used mostly for household heating which amounts to 150,000 – 220,000 m3 annually. It isused by the public and commercial sector to a lesser extent. Except for traditional purposes, other usesof biomass fuels have not yet been established.71PROJECTS IN THE ENERGY SECTORHydro Energy ProjectsThe most significant source of potential energy in Montenegro is hydro electric power. Therefore, thissector is the focus of plans for the development of the energy sector in Montenegro.CONCESSION FOR CONSTRUCTION OF HPPS ON THE RIVER MORAČAThe Montenegrin Government plans to give concessions for the construction of 4 HPPs in Andrijevo,Raslovići, Milunovići and Zlatica each of which are located on the river Morača. According to the MontenegrinAction Plan for the Implementation of Energy Development Strategy, the total installed powerof these HPPs should amount 238 MW and their average annual production of electricity should be 700GWh. The estimated timeframe for the construction of all four of the HPPs on the River Morača is 6years and the Montenegrin Ministry of Economy (the “Ministry of Economy”) estimates that they willcost somewhere in the region of EUR 500 million to complete.FOCUS ON ENERGYThe “International Finance Corporation”, a member of the “World Bank Group” is providing consultancyservices in relation to this project. According to the Ministry of Economy, a public invitation for the prequalificationof interested bidders should be announced by the beginning of March this year, whilst theawarding of a concession agreement should be concluded by the end of 2010.THE HPP AT KOMARNICAThis power plant is planned to be constructed on the river Piva. The Austrian company “Pöyry Energy”is currently determining whether or not the construction of this plant is feasible. The HPP should have acapacity of 168 MW and an annual production of 232 GWh. It is scheduled to be completed in six yearsand it is estimated that it will cost approximately EUR 177 million to complete.