Montenegrin state-owned power company EPCG is set to launch a new tender in August for the small hydropower plant (SHPP) Otilovici, two years into a procurement process that has been canceled twice.
Along with the new call, EPCG is considering involving international financial institutions as funding partners to ensure a bankable project. If the procedure follows the Public Procurement Law again, the contract value remains 8.2 million euros, with documentation updated to comply with newly adopted rules.
The previous tender, launched late last year, was canceled in April after bidders failed to meet technical requirements. That process included construction on the existing dam, preparation of the main design, and an environmental impact assessment.
EPCG frames SHPP Otilovici as part of a broader renewable energy expansion to support Montenegro’s energy transition, particularly in Pljevlja and northern regions, as the Pljevlja thermal power plant is expected to cease operations by 2041. The project aligns with national energy and climate plans alongside initiatives such as the Solari programs, the Gvozd wind farm, and the Kapino Polje solar project.
The planned plant will be located on the Cehotina river dam, commissioned in 1982 to supply water to TPP Pljevlja. It is designed for roughly 3 MW of capacity and an estimated 11 million kWh of annual generation, enough to supply around 1,200 households. EPCG previously projected an 18–24 month construction period with commissioning by the end of 2026, but the new tender will likely extend that timeline.
The utility says the project will enhance system stability, support the local economy, and advance Montenegro’s objectives for energy security, environmental protection, and climate responsibility.
