Montenegro’s state-owned power utility, EPCG, reported a profit of over 11 million euros for the first quarter of 2024. This marks a significant decrease compared to the 113.9 million euros earned in the same period last year. The sharp decline is attributed to an unprecedented drought that severely impacted the company’s hydroelectric power generation and a drop in electricity market prices.
The ongoing drought has halted the turbines at EPCG’s hydro facilities, leading to a notable increase in electricity imports—approximately 195 GWh more than in the first quarter of 2023. This change contributed to a 64 million euro reduction in the company’s business performance for this period.
In the first quarter of 2023, EPCG also benefited from nearly 32 million euros in revenue due to the adjustment of asset values related to the acquisition of the steel mill Zeljezara Niksic. This revenue boost was absent in 2024.
The challenges continued into the first half of 2024, with EPCG facing an operational loss of 3.4 million euros. The company had to import an additional 345 GWh of electricity, driving total import costs up to 84.7 million euros.
Despite the lack of significant improvement in hydrological conditions during the third quarter, better conditions are anticipated for the fourth quarter. With expected improvements in hydropower generation and the steady performance of TPP Pljevlja, EPCG aims to stabilize its production and financial performance and hopes to end the year without further losses.
