Montenegro, report: Government restarts capital HPP projects, bids from international investors expected due to the high level of interest

, SEE Energy News

State provided 802 million EUR in the last two decades because of big deficit and electricity consumption.

Government negotiate with several foreign companies about potential construction of HPPs on Moraca, representative of Economy Ministry, Nikola Jablan, said in Montenegrin Chamber of Commerce where new energy sources i.e. big HPPs were discussed a lot.

Jablan explained that interests of foreign companies began after Governmental decision to declare tender process for HPPs on Moraca construction in 2011 as not being successful.

According to his words, they negotiated with Chinese, Turkish, Italian and Azerbaijan companies who asked for certain documentation and their representatives visited locations of planned HPPs.

-We haven’t got any official offer that can be reconsidered by Government from them yet. These conversations are still in progress- Jablan said after joint session of Energy and Mining Association Board and Construction, Industry, Construction Material and Communal Industry Board.

There is no black list

Talking about statements of NGOs that Montenegro is on the black list when it comes to construction of HPP on Moraca, Jablan said that he is not introduced with such list.

He reminded that WWF with group of experts from Montenegro had done three studies that showed the HPP on Moraca project to be bad from ecological point of view. These studies were about birds and fishes.

-Later research that were done in the scope of GEF project financed by World Bank showed that there are no hydrological influences at all but they are positive at some segments- Jablan added.

We have reports from experts from National Park’s that say influence on fish and birds in Skadarsko jezero are not dangerous as WWF claims.

Keeping up with the world

When he was asked if Montenegro is keeping with developed world considering recommendations to build small HPPs instead of big, Jablan said that “we are losing it for 50 years because they realized big HPPs half century ago and now they are constructing small HPPs”.

-Only 17% is being used. We haven’t done any big HPP, except Perucica and Piva. It is reasonable to construct small HPPs. Only after people begin to pay for energy from small HPPs and renewable energy sources, we will understand it- Jablan estimated.

He explained that prices that Regulatory Energy Agency determined for smallest HPPs are two or three times higher than electricity price from HPP Perucica or Piva and two times from TPP Pljevlja. The same is for wind power plants.

Unused potential

Jablan repeated on the session that Montenegro has huge unused hydro power and thermal power potential and reminded that state had a huge deficit in electricity consumption during last two decades and provided 802 million EUR for its import.

According to his words, declaration for Tara River protection, adopted by Government in December 2004, disabled use of over 50 percent of technically possible and usable hydro energy potential.

Jablan stated that constructions of HPP on Moraca, HPP Komarnica, TPP Pljevlja 2, TPP Maoca and small HPPs, photovoltaic and wind power plants and biomass plants are planned with energy development strategy draft to be done by 2030.

Revitalization and reconstruction of HPPs Perucica, Piva, TPP Pljevlja, and transmission and distribution network are planned. Total investment for construction of these new objects and revitalization of existing objects shall cost over 3,27 billion EUR, according to the statement from strategy draft.

Source;Serbia Energy SEE Desk/ Pobjeda