The Montenegrin government has taken a significant step in advancing its renewable energy initiatives by granting environmental approval for the construction of the Otilovići small hydropower plant. This decision, made by Montenegro’s Environmental Protection Agency, allows state-owned power utility EPCG to move forward without the need for a comprehensive environmental impact assessment, indicating a streamlined regulatory approach for this project.
Situated near Pljevlja on the Cehotina river, the Otilovići facility is designed to have an installed capacity of 2.96 MW. It is projected to generate approximately 11.56 GWh of electricity annually. The total investment for the project is estimated at about 8.2 million euros, inclusive of VAT, reflecting a substantial commitment to enhancing local energy production capabilities.
The environmental approval comes with stipulations that EPCG must adhere to all relevant technical standards and safety regulations throughout both the construction and operational phases. The agency has stressed the importance of implementing all mitigation measures specified in the project documentation, ensuring that environmental considerations remain a priority as development progresses.
This project leverages existing infrastructure, utilizing the current Otilovići dam and reservoir while maintaining the existing hydrological balance of the river system. By situating the new hydropower plant downstream from the existing dam, officials anticipate a reduced environmental footprint, which aligns with broader sustainability goals.
Development plans encompass the creation of a water intake pipeline, a powerhouse outfitted with electro-mechanical systems, a control facility, and a substation to connect to Montenegro’s national electricity grid. The Government of Montenegro provided urban and technical conditions for this initiative in 2023, following EPCG’s formal request for an environmental assessment submitted in late April.
<pFurthermore, authorities have approved a 10-month extension for completing the initial phase of the project. EPCG has indicated that construction could be completed by October 2027. In the interim, efforts will focus on finalizing design plans, securing necessary permits, and enhancing environmental documentation. On-site construction activities are anticipated to commence in autumn and last for approximately one year.
<pEarlier in the year, EPCG entered into a turnkey agreement with local firm Vigoris Ecotech, which encompasses comprehensive responsibilities including detailed design work, civil construction, equipment delivery and installation, along with testing and commissioning of the hydropower facility. This partnership underscores a collaborative approach to advancing Montenegro’s renewable energy infrastructure.
