Montenegro is facing its most challenging year for the energy sector, Minister of Energy and Mining Admir Šahmanović stressed.
State-owned power utility Elektroprivreda Crne Gore (EPCG) will suffer a loss of around EUR 80 million given that the Pljevlja coal power plant is offline, while electricity consumption is rising amid increases in prices of other energy sources, Admir Šahmanović told TV Vijesti.
He explained that development is focusing on the reconstruction of the thermal power plant, addressing delays in connecting solar power plants to the grid, and plans for projects including within cooperation with the UAE and an agreement with Italy on a second subsea cable.
Šahmanović: We entered this year quite wounded
The priority will be price stability and increasing the use of renewable sources, along with strengthening Montenegro’s position as an energy hub between the region and the European Union, he added.
“I can freely say that, regarding this year, it is perhaps the most challenging year in the modern history of Montenegro, exactly for the energy sector. We entered this year quite wounded given the fact that last year the hydrological conditions were the worst in the country’s history,” he asserted.
Šahmanović added the electricity demand in Montenegro has jumped 6%.
Climate change is playing its part
One of the reasons is the increase in the price of energy sources such as wood and coal, according to the minister.
He pointed to climate change as another factor. There is a growing need to install air conditioning units even in northern Montenegro, where there was previously no need for it, he added.
Therefore, in the minister’s words, the construction of other production facilities is inevitable.
Of note, EPCG’s executive manager of supply Jovan Kasalica said in April that electricity consumption in Montenegro has risen by 25% over the previous four years.