In a significant development for Montenegro’s energy sector, the state-owned power utility EPCG has formally requested a ten-month extension from the Government to complete the first phase of its small hydropower Otilovići project. This request comes in light of procurement delays that have hindered progress and prevented EPCG from meeting previously established deadlines.
The procurement process has been particularly challenging, with two unsuccessful tender attempts preceding the eventual selection of a contractor. In January, EPCG awarded the design and construction responsibilities to Vigoris Ecotech, a domestic firm, which enabled some advancement in the project timeline, albeit not enough to adhere to the original schedule.
According to the revised agreement with Vigoris Ecotech, the anticipated date for obtaining the construction permit is now set for late September 2026. The original deadline stipulated in the concession contract lapsed in January, necessitating EPCG’s formal appeal for additional time to ensure compliance with contractual obligations.
The concession agreement, initiated in August 2022, allowed an initial period of 18 months for preparing necessary technical documentation and securing permits. This was followed by a second phase designated for construction and commissioning over two years. The Government has previously amended this contract twice, first extending it to January 2025, and subsequently granting an additional one-year extension.
The Otilovići facility is projected to incorporate two horizontal Francis turbine units, collectively boasting an installed capacity of approximately 3.2 MW. Upon becoming operational, it is expected to produce around 11 GWh of electricity annually, which would be sufficient to power about 1,800 households.
This initiative is integral to EPCG’s overarching strategy aimed at enhancing renewable energy production within Montenegro. It aligns with efforts to transition away from fossil fuels as the country prepares for the potential closure of TPP Pljevlja, a thermal power plant facing environmental challenges that may lead to its decommissioning by 2041.
