The Montenegrin government and power utility EPCG are set to begin construction on the Krusevo hydropower plant on the Piva River, downstream from the existing Mratinje dam, within the next two years. This marks the first major hydropower project in Montenegro since the HPP Piva was completed in 1976. The construction is estimated to cost around €160 million, with the necessary project documentation expected to be finalized by 2025 or early 2026.
The Krusevo project aims to decrease the reliance on coal-generated electricity and help Montenegro meet its EU accession commitments. In August 2023, EPCG initiated a tender for geological research at the proposed site. Previous studies evaluated two potential locations for the plant, ultimately favoring Gornje Krusevo, which will feature a reservoir near the border with Bosnia and Herzegovina.
The planned hydropower plant will have an installed capacity of 82 MW and an anticipated annual output of 170 GWh, contributing approximately 5% of Montenegro’s total electricity generation. It is part of Montenegro’s Energy Development Strategy through 2030 and is recognized as a priority project for enhancing the country’s renewable energy portfolio. This initiative aligns with Montenegro’s commitment to reducing its dependence on the coal-fired thermal power plant in Pljevlja, which currently accounts for 40-60% of national electricity production.
In recent years, EPCG has launched various projects aimed at generating electricity from sustainable sources, including hydro, solar, and wind energy. Additionally, Montenegro has entered a strategic partnership with the French company EDF Energy, focusing on hydroelectric projects.
