The thermal power plant Pljevlja in Montenegro is set to be out of operation from early April to mid-November 2025 due to ongoing environmental reconstruction efforts. During this period, the country will experience a shortfall of 750 GWh of electricity, a gap that will be covered through imports, with the state-owned power utility EPCG responsible for securing the necessary electricity. At current market prices, this is expected to cost over 100 million euros.
The shutdown of TPP Pljevlja, the largest and most critical electricity producer in Montenegro, will have significant economic implications. Montenegro, which has traditionally been an electricity exporter, will become a net importer next year, likely increasing the national trade deficit, slowing GDP growth and potentially driving up electricity prices for consumers.
While TPP Pljevlja is operational in the first quarter of 2025 (January-March) and again in the last quarter (November-December), Montenegro will still face an overall electricity deficit of 343 GWh for the year. EPCG has already secured 50 GWh of the missing electricity at a rate of around 100 euros/MWh—twice the price at which it sells to consumers. The current market price is between 140 and 160 euros/MWh, which is nearly three times higher than EPCG’s consumer rates. The remainder of the required electricity will likely be secured soon, depending on responses from private energy producers such as small hydropower plants and wind farms. Minister of Energy, SaÅ¡a Mujović, has invited these producers to sell their electricity to EPCG at favorable prices in exchange for an extension of their preferential status by one year.
To manage the shortfall, EPCG plans to maximize output from hydropower plants by filling the reservoirs of HPP Piva and HPP Perucica during the January-March period. The usual overhaul of HPP Perucica will be adjusted, with individual units serviced one at a time. Additionally, EPCG plans to start production from two new solar power plants—one at the Vrtac dam and another on the rooftops of the Zeljezara Niksic steel plant—beginning in April.
Hydropower generation next year will depend on rainfall levels, with any decrease in precipitation likely exacerbating the energy balance. For example, this year’s hydropower production will total 1,700 GWh, significantly lower than the 2,200 GWh produced in 2023, which was a wetter year.
Looking ahead to 2025, TPP Pljevlja’s output is expected to drop to just 588 GWh, a significant decline from 1,290 GWh in 2024. This reduction will shift TPP’s contribution to the national energy mix from 38% to just 20%. This underscores the importance of TPP Pljevlja to Montenegro’s energy supply and economy, particularly in light of ongoing negotiations with EU partners to extend its operational life for another 10-15 years while transitioning to alternative energy sources.
Hydropower is expected to generate 1,873 GWh in 2025, with 950 GWh coming from HPP Perucica (150 GWh more than this year) and 750 GWh from HPP Piva (12 GWh more than this year). Small hydropower plants, mostly privately owned, are projected to produce 173 GWh, an increase of 9 GWh over 2024. Additionally, two private wind farms, Mozura and Krnovo, are expected to produce 326 GWh—22 GWh more than this year. Solar power plants are projected to generate 113 GWh, double the output of 2024, driven by the ongoing Solari project and new solar plant installations.
In total, 65% of Montenegro’s electricity production in 2025 is expected to come from hydropower plants, 20% from TPP Pljevlja, 11% from wind farms, and 4% from solar plants.
Electricity consumption for the year is projected at 3,243 GWh, with direct industrial consumers accounting for 48 GWh (1.4% of total consumption). Households are expected to consume 1,500 GWh, and businesses will consume 1,250 GWh. Technical losses in the network are estimated to decrease to 447 GWh from 460 GWh in 2024, with distribution losses falling from 312 to 299 GWh, and transmission losses remaining stable at around 148 GWh.
