Montenegro, TPP Pljevlja reconstruction started

, SEE Energy News

Montenegrin state-owned power utility EPCG said that it has started the environmentally oriented reconstruction of the country’s sole coal-fired thermal power plant Pljevlja, with the aim of increasing the plant’s operational life.

The project’s value is 70 million euros and it should be completed in two and a half years.

In June 2020, EPCG signed a contract for the reconstruction of coal-based thermal power plant Pljevlja with a consortium led by Chinese Dongfang Electric Company (DEC). The selected consortium offer to perform the reconstruction for around 54.4 million euros including VAT. EPCG later decided to invest additional 15 million euros in the reconstruction.

Project implementation was scheduled to take place in the period 2019-2021, after which the operation of TPP Pljevlja will be enabled to continue for at least 20 years. Reconstruction will assure compliance with the requirements and adherence to the strictest environmental protection parameters as envisaged under the latest EU Decision 2017/1442.

Last April, the Energy Community Secretariat sent an Opening Letter to Montenegro to address its breach of the Large Combustion Plants Directive. In particular, the country’s sole thermal power plant Pljevlja, continues to operate despite the expiry of the limited lifetime derogation period of the plant.

Following a written declaration not to operate a plant for more than 20,000 hours after 1 January 2018, the limited lifetime derogation (also known as opt-out) was granted to selected installations by the Energy Community Ministerial Council. It is an implementation alternative to complying with the maximum emission limits set by the Large Combustion Plants Directive. Following the expiry of the 20,000 hours, the plants can only remain in operation if they meet the (stricter) standards of the Industrial Emissions Directive. This is not the case for TPP Pljevlja.