Montenegro’s state-owned power utility EPCG is bracing for a significant financial shortfall in 2025, according to CEO Ivan Bulatović. To ensure a stable electricity supply for households and businesses, the company is expected to seek financial assistance from commercial banks.
Several key challenges are driving the projected losses. The thermal power plant (TPP) Pljevlja, a major source of domestic electricity, has been offline for several months due to ongoing reconstruction. Simultaneously, electricity consumption in the country has surged. Complicating the situation further, EPCG’s coal mining subsidiary is relocating the Ćehotina River, disrupting coal production and reducing revenues.
With TPP Pljevlja expected to remain offline until mid-November, EPCG anticipates spending around 80 million euros on electricity imports. While international prices exceed 100 euros per megawatt-hour (MWh), EPCG continues to sell electricity at a regulated domestic price of just 45 euros/MWh. This widening gap, along with a spike in household consumption—now comparable to the former demand of the Podgorica aluminum plant—has created a heavy financial burden.
EPCG is also grappling with cash flow issues at Pljevlja coalmine, where the river diversion project has paused invoicing and revenue collection, adding to liquidity pressures across the company.
Despite the mounting difficulties, EPCG closed 2024 with a net profit of 10.2 million euros, a notable achievement given last year’s poor hydrological conditions. The start of 2025, however, brought further challenges, with dry weather in January and February limiting hydropower output. March’s heavy rainfall provided some temporary relief, slightly improving both financial performance and liquidity.
Nevertheless, with TPP Pljevlja disconnected from the grid since 31 March, EPCG is under pressure to accelerate reconstruction. CEO Bulatović confirmed that the company is committed to speeding up the project timeline, although doing so will require additional funding and intensified work efforts.
