Focus on Energy, 2010 - Karanovic & Nikolic

tion of 4 plants. According to the Energy Strategy, The HPPs should have a total power capacitysomewhere in the region of 101 MW to 124 MW and an average annual production somewhere inthe region of 325 to 371 GWh.Milovci. According to Energy Strategy, these HPPs will have a combined power capacity in the regionof 75 MW and an average annual production of 222 GWh.panded.When the first block of the Pljevlja power plant was constructed, a significant part of theinfrastructure was designed with the construction of second block in mind. It is estimated by theEnergy Strategy that the new block could have a power capacity in the region of 225 MW.the Berane basin. Such a power plant could have a power capacity in the region of 125 MW with anestimated annual output of 550 GW.PARTICIPANTS IN THE ENERGY SECTORRegulatory BodiesTHE GOVERNMENT74FOCUS ON ENERGYThe Government defines the national energy policy of Montenegro. Under the newly proposed MontenegrinEnergy Law (the “Energy Law”), (which at the time this publication went to print was due to beadopted in March 2010) the Government will be in charge of the preparation of the above mentionedEnergy Strategy. It will also be charged with preparing an accompanying Action Plan for the Implementationof the Energy Strategy (the “Action Plan”). Apart from the planning documents that describe thenational energy policy in the energy sector as a whole, the Government will need to issue separate tenyear national programs for both the development and the utilization of the renewable energy sources(the “RES Program”), and a program for the development and utilization of the high-efficiency cogeneration(the “CHP Program”). The RES Program and the CHP Program should be issued within 12months of the new Energy Law coming into force.THE MINISTRY OF ECONOMYUnder the Energy Law, the Ministry of Economy will supervise the implementation of the national energypolicy as defined by the Government, and it will prepare annual reports to the Government onthe execution of the Energy Strategy, the Action Plan, the RES Program and the CHP Program. It willsupervise the activities of the participants in the energy sector, e.g. the producers of electricity, suppliers,traders, and their compliance with the applicable energy laws and regulations.The Ministry of Economy will also decide about permits for the construction of energy facilities throughthe issuance of energy permits (the “Energy Permits”) and will issue approvals for the exploration andthe measurements of the renewable energy sources’ (“RES”) capacities in locations where interestedinvestors plan to construct the facilities for the production of energy from RES.THE REGULATORY ENERGY AGENCY (THE “A G E N C Y ” )The Agency was established by the Energy Law from 2003 as the main regulatory body in the Montenegrinenergy sector. Under the new Energy Law, the powers of the Agency in the energy sector willinclude, amongst other things, the following: “Energy License”); efficiency cogeneration; for transportation, such as transmission and distribution grids;