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Montenegro: Transmission network can not accept new RES power plants

For the transmission power grid to accommodate more than 30 new solar and wind power plants, which have received urban-technical conditions (UTC) in recent years, it is necessary to strengthen the transmission network, a process that may take more than a decade. These investments could amount to several hundred million euros, according to the Montenegro Electric Transmission System (CGES), the majority state-owned company that manages the transmission power grid.

As of 2013, CGES requested the then Ministry of Ecology, Spatial Planning, and Urbanism to halt the issuance of new UTC for the construction of high-capacity power plants from renewable sources, but the government continued to issue them.

To date, over 40 requests for UTC have been submitted, mostly for large solar power plants, and previous governments have issued 30 such conditions for the construction of facilities with a total installed capacity of about 4,000 megawatts (MW). All existing production capacities have about 1,000 MW, which corresponds to the capacities of the current transmission grid. Investors will have to wait for a connection until they receive an analysis of the possibility of a connection.

The problem lies in Article 218c of the Spatial Planning and Construction Law, which allows the issuance of UTC for energy facilities without planning and strategic planning and without the possibility of influencing the relevant Ministry of Energy and CGES.

CGES stated that they have significant plans to improve the transmission infrastructure, not only to increase capacities for integrating renewable sources but also to ensure a safer and more efficient system operation. However, the problem is that network construction takes much longer due to permits, expropriation, resolution of property issues, etc., than the time needed to build a large solar power plant.

The current five-year investment plan is almost 200 million euros. However, it is necessary to know that network construction is significantly slower than the construction of a solar power plant because it involves more complex and demanding activities, including ensuring spatial planning and property-law prerequisites over large distances, which fall under the jurisdiction of other state bodies. If we talk about connecting 4,000 MW of power plants, strengthening the transmission network is certain to require the construction or reconstruction of several hundred kilometres of power lines, which can take more than a decade and cost hundreds of millions of euros. Nevertheless, considering Montenegro’s total consumption ranging from 200 to 550 MW, existing installed capacities at around 1,000 MW, and the fact that neighbouring countries are planning or have already built significant capacities in renewable sources, it is realistic to expect that a significant number of the mentioned 30 projects may not be realized, given all the challenges that accompany such projects, stated CGES.

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