State-owned power utility EPCG has requested a one-year extension for completing the first phase of the Otilovici small hydropower plant (SHPP) project near Pljevlja. The delay is due to the ongoing tender process for the facility’s design and construction. The first phase involves preparing the necessary technical documentation.
The Otilovici SHPP will be built on the existing Otilovici concrete dam, with an installed capacity of 2.96 MW, expected to generate approximately 11 GWh of electricity annually. EPCG submitted a formal request to the Ministry of Energy in January, seeking an additional 12 months to complete the first phase of the concession agreement. The delay was attributed to the legal requirement to conduct a public procurement procedure. Although EPCG launched a tender on April 30 of the previous year, the Public Procurement Review Commission annulled it on December 30, 2024, leading EPCG to initiate a new tender on the same day.
In considering the extension request, the Government took into account the benefits of the Otilovici project. One major advantage is the utilization of excess water from the existing reservoir on the Cehotina River, originally built to support the TPP Pljevlja. This approach maximizes water resource efficiency without harming the river or the surrounding environment.
As a public investment, the Otilovici SHPP supports Montenegro’s energy independence and supply security. The project is not expected to negatively impact the ecosystem and may even aid in downstream flood control by regulating water flow. Additionally, the plant aligns with Montenegro’s objectives to expand renewable energy production, reduce greenhouse gas emissions, and comply with European environmental standards and sustainable development goals.
