Montenegro’s key electricity producer, the Pljevlja thermal power plant, has been shut down for reconstruction and will remain offline until mid-November. The plant typically supplies over 40 percent of the country’s electricity, making its closure a significant challenge for the national energy system.
Despite the shutdown, the state-owned utility EPCG has assured consumers that electricity supply will remain stable and that prices will not increase during the first half of the year. Households using up to 500 kilowatt-hours (kWh) per month are expected to avoid any rate hikes for the entire year. A detailed analysis is planned later in the year, after which the public will be informed of any potential adjustments.
With the country temporarily losing its primary energy source, Montenegro will rely more heavily on electricity imports, which are subject to international market prices. While EPCG aims to shield consumers from price hikes, some economic experts remain skeptical. Financial consultant Stevan Gajevic predicts that electricity prices may rise modestly, estimating an increase of about 10 percent. He believes the government will likely intervene to soften the impact. Economic analyst Davor Dokic echoed this view, suggesting the state might use subsidies or other financial tools to prevent significant increases. He also stressed the importance of keeping energy prices in check due to their influence on overall inflation.
In the absence of coal-based production, Montenegro will now rely almost entirely on hydropower. This makes energy supply particularly sensitive to weather conditions over the coming months. Dokic noted that weather patterns will play a key role in maintaining energy stability during the plant’s downtime.
To address the anticipated electricity shortfall, Montenegro has already secured about 75 percent of its estimated needs, worth at least 80 million euros. The remaining 25 percent for the third quarter is expected to be purchased during the second quarter, with any additional needs covered on a rolling basis. EPCG also mentioned that the subsidies applied to electricity bills in the first quarter of the year may be extended through July to help ease the burden on consumers.
