Montenegrin state-owned power utility EPCG is requesting additional time to complete the initial stage of its small hydropower Otilovići project, following setbacks that prevented the company from meeting earlier deadlines. EPCG has formally asked the Government to approve a ten-month extension to finalize the first phase of the development.
The delays were largely caused by difficulties in the procurement process. After two failed tender procedures, EPCG eventually secured a contractor in January, awarding the design and construction works to the domestic company Vigoris Ecotech. This step allowed the project to move forward, but not in time to meet the contractual schedule.
Under the revised timeline outlined in the agreement with the selected contractor, the construction permit is now expected to be obtained by late September 2026, marking the completion of the first phase. The most recent deadline defined in the concession contract expired in January, prompting EPCG to formally seek additional time to continue the project without breaching its obligations.
The original concession arrangement, signed in August 2022, provided 18 months for the preparation of technical documentation and securing permits, followed by a second phase lasting two years for construction and commissioning. The Government has already modified the contract twice, first extending the initial deadline to January 2025 and then granting an additional one-year extension.
The planned facility will feature two horizontal Francis turbine units with a combined installed capacity of about 3.2 MW. Once operational, it is expected to generate around 11 GWh of electricity annually, enough to supply roughly 1,800 households.
The Otilovići project forms part of EPCG’s broader strategy to expand renewable energy output in Montenegro, preparing for the eventual closure of TPP Pljevlja, which faces environmental constraints and could be phased out by 2041.
