In a significant development for Montenegro’s energy landscape, the state-owned power utility EPCG has formally requested a ten-month extension from the Government to complete the initial phase of its small hydropower project at Otilovići. This request comes in light of procurement delays that have hindered the company’s ability to meet previously established deadlines.
The setbacks primarily stemmed from complications in the procurement process. After experiencing two unsuccessful tender attempts, EPCG successfully engaged Vigoris Ecotech, a domestic contractor, in January for design and construction activities. While this partnership allows for progress, it has not aligned with the original project timeline.
According to the revised schedule agreed upon with Vigoris Ecotech, EPCG anticipates obtaining the necessary construction permit by late September 2026, which would signify the completion of the first phase of development. The deadline set forth in the concession contract expired earlier this year in January, prompting EPCG’s formal request for additional time to ensure compliance with its contractual obligations.
The initial concession agreement, signed in August 2022, allocated 18 months for the preparation of technical documentation and obtaining required permits, followed by a two-year period dedicated to construction and commissioning. To date, the Government has modified this contract twice—first extending the deadline to January 2025, and subsequently granting an additional year.
The Otilovići facility is designed to incorporate two horizontal Francis turbine units, collectively expected to deliver an installed capacity of approximately 3.2 MW. Once operational, it is projected to produce around 11 GWh of electricity annually, sufficient to power about 1,800 households.
This initiative is part of EPCG’s overarching strategy aimed at bolstering renewable energy output in Montenegro. The project is particularly relevant as it aligns with plans for the eventual decommissioning of TPP Pljevlja, which faces significant environmental challenges and is slated for potential closure by 2041.
