1. ENERGY SECTOR IN MONTENEGRO

2. 1. Overview of the Current Situation
Montenegrin Investment Promotion Agency (MIPA)

3. Electric Power Sector 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.

4. Oil and Gas Sector
Jugopetrol Kotor – the largest petrol firm in Montenegro (54% owned by Hellenic Petroleum and 46% owned by Investment funds and citizens). Still, 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 infrastructure for gas distribution and therefore consumption of gas is minimal one;
There is no Petroleum Law;

5. 2. Hydro and Thermo Potential
Montenegrin Investment Promotion Agency (MIPA)

6. Hydro Power 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.

7. Hydro Power Plants Decisions on privatization is made;
Privatization Strategy of the EPCG will be completed by October 1st 2005;
Focus will be on providing framework for privatization of Distribution system and Production;
EPCG is functionally unbundled;

8. Small Hydro Power Plants
EPCG Board of Directors made decision for 5 Small hydro plants to be privatized;
Necessary documents are being prepared, tender procedure is about to be announced;
Total installed capacity 2,71 MW; annual generation 5,5 GWh.

9. 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.
There are project designs for 16 SHPPs with installed capacity up to 1 MW, 17 SHPPs with installed capacity from 1 to 2 MW, and 37 SHPPs with installed capacity over 2 MW.

10. Large 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)

11. Thermo Power Potential
One thermal power plant, installed capacity 210 MW, average annual generation 1.07 TWh;
Gray lignite coal potential:
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

12. New Potentials Solar energy; Energy by Wind.
Estimated reserves of gas in Block III are about 200 billion m3. Other two block 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.

13. Production, Consumption and Balance of Electricity

14. Montenegrin Investment Promotion Agency (MIPA)3.
Oil and Gas Potential
Montenegrin Investment Promotion Agency (MIPA)

15. Is there a gas in Montenegro?
Off shore of Montenegro is divided in three blocks for exploration;
The State gave concession rights to Jugopetrol which for exploration are expiring latest by 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);

16. Large 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)

17. Overview of the Investment Possibilities
Gas
Exploitation
Thermo Plant
Investment
Opportunities
New Sources
Wind & Solar
Small Hydro
Plants
Large Hydro
Plants