Overview of the Energy Sectors of Montenegro

• Electric Power
  • EPCG – Electric Power Company of Montenegro
  • State Monopoly
    • 67% state ownership - 33% private
  • New Energy Law adopted in 2003
  • Regulatory Agency established in January 2004
  • EPCG functionally unbundled – January 2005
  • Legal unbundling is taking place in the next period
  • Treaty establishing the Energy Community in SEE (SEE REM) is signed
  • Energy Sector Development Strategy is developed

• Oil and Gas
  • Jugopetrol Kotor – the largest petrol firm in Montenegro
    • 54% owned by Hellenic Petroleum and 46% owned by Investment funds and citizens
    • Around 40% of the petrol-station are outside of Jugopetrol
  • Import of oil derivates and gas is free
    • 12 importers
  • Regulatory Energy Agency established in 2004 is in charge for licenses
    • but not for final price of the oil derivates and gas
  • Annual import of oil derivates is 350,000 t
  • There is no gas distribution infrastructure, therefore consumption of gas is minimal
  • There is no Petroleum Law

Hydro-Electric and Geo-Thermo Potential

• Total hydropower potential 10 TWh
• Utilized at the moment - 17%
• Two large hydropower plants, installed capacity 649 MW, average annual generation 1.7 TWh
• 7 small hydropower plants, installed capacity 9,025 MW, average annual generation 21 GWh

• Hydro Power Plants
  • Decisions on privatization are already established
  • Privatization Strategy of the EPCG was scheduled for October 1st 2005
  • Focus on providing framework for privatization of Distribution System and Production
  • EPCG is functionally unbundled
     
• Small Hydro Power Plants (SHPP)
  • EPCG Board of Directors made decision for 5 Small hydro plants to be privatized
  • Documents are being prepared, tender procedure is about to be announced
  • Total installed capacity 2,71 MW
  • Annual generation 5,5 GWh
     
• Opportunities for New SHPP
  • There are 70 project designs for SHPPs
    • Capacity – up to 10 MW
  • Total installed capacity 231,005 MW and average annual generation 642,933 GWh
  • Project designs for:
    • 16 SHPPs with installed capacity up to 1 MW
    • 17 SHPPs with installed capacity from 1 to 2 MW
    • 37 SHPPs with installed capacity over 2 MW
       
• Large Hydro Power Plant (HPP) Projects
  • HPP “KOSTANICA”
    •  544 MW 1332,1 GWh/y
  • HPPs on Moraca River
    • Natural flow: 238,4 MW; 693,7 GWh/y
    • Water diversion: 357,6 MW; 1010 GWh/y
  • HPP “KOMARNICA” 
    • 168 MW; 231,3 GWh/y
  • HPP “LJUTICA”
    • 224 MW; 553,6 GWh/y
       

• Thermo Power Potential
  • One operating thermal power plant
    • Installed capacity 210 MW
    • average annual generation 1.07 TWh
  • Gray lignite coal potential:
    • See above illustration's high lighted regions
    • In Pljevlja – estimated reserves 205 million t out of which proved exploitations reserves are about 110 million t
    • In Berane (gray coal) – estimated reserves 38 million t out of which exploitations reserves are 17 million t

• New Potentials
  • Estimated reserves of gas in Block III are about 200 billion m3.
    • Other two blocks are not estimated yet
  • Solar energy
  • Energy by Wind
    • Pilot project – Wind Plant at Vilusi (near NIksic).
    • 500 kW. 1,25-1,80 GWh/god

Production, Consumption & the Balance in Electric Power

Oil & Gas Potential in Montenegro

• Off shore of Montenegro is divided in three blocks for exploration
• The State gave concession rights to Jugopetrol for which exploration rights expired in 2007
• Jugopetrol signed two joint ventures contracts with foreign partners
• There are possibilities for new international tenders for gas exploration and exploitation
  • including gas on the land
     

Summary of Investment Potentials in Energy

• Gas Exploration
• Geo-Thermo Plants
• Small Hydroelectric plants
• Large Hydroelectric plants
• New Sources: Wind and Solar