State-owned power utility EPCG has received environmental approval to proceed with the construction of the Otilovići small hydropower plant near Pljevlja, after Montenegro’s environmental authorities determined that a full environmental impact assessment would not be necessary for the project.
The future hydropower facility will be constructed at the existing Otilovići dam on the Cehotina river and is planned with an installed capacity of 2.96 MW. Annual electricity generation is expected to reach approximately 11.56 GWh, while the total investment value is estimated at around 8.2 million euros, including VAT.
According to the decision published by Montenegro’s Environmental Protection Agency, EPCG will still be required to comply with all technical standards, environmental protection measures, and safety regulations during both the construction and operational phases of the project. Authorities also emphasized that all mitigation measures outlined in the submitted project documentation must be fully implemented.
The project is based on the use of already existing infrastructure, including the Otilovići reservoir and dam, without changing the current hydrological regime of the river system. Officials highlighted that the selected location significantly reduces environmental impact, as the hydropower plant will be positioned directly downstream from the existing dam structure.
Development plans include the construction of a water intake pipeline, a powerhouse equipped with electro-mechanical systems, a control facility, and a substation for connection to Montenegro’s national electricity grid. The Government of Montenegro issued urban and technical conditions for the project in 2023, while EPCG formally submitted its environmental assessment request at the end of April this year.
Authorities have also approved a 10-month extension for completing the first phase of the project. According to earlier statements from EPCG, construction of the hydropower plant could be finalized by October 2027. Most activities during this year will focus on preparing the main design, securing permits, and completing additional environmental documentation, while on-site construction works are expected to begin in autumn and continue for approximately one year.
Earlier this year, EPCG signed a turnkey agreement with local company Vigoris Ecotech for the implementation of the project. The contract includes detailed design work, civil construction, delivery and installation of equipment, as well as testing and commissioning of the future hydropower facility.
