Elektroprivreda Crne Gore (EPCG) has canceled a €58.08 million tender, including VAT, for the procurement of two modern battery energy storage systems (BESS), originally planned for installation at the Nikšić Steelworks, after failing to obtain approval for the loan needed to finance the project.
The cancellation decision, signed by EPCG Executive Director Ivan Bulatović, specifies that bidders are not entitled to any compensation, reimbursement of costs, lost profits, or other claims against EPCG.
EPCG confirmed that the Ministry of Finance had not granted the requested approval. The ministry reportedly remains cautious until the Pljevlja Thermal Power Plant (TE Pljevlja) resumes operations.
TE Pljevlja has been offline since April 1 due to an ongoing ecological reconstruction project and is expected to return to operation on November 15. The reconstruction aims to bring the plant into compliance with Montenegrin regulations and EU directives (IED 2010/75/EC) regarding air, water, and soil protection.
EPCG stated that the introduction of BESS systems will allow more efficient management of electricity surpluses and shortages. Energy stored during periods of low prices or high renewable generation can be released into the grid when prices rise, generating significant cost savings and additional revenue. The systems will also reduce the need for expensive electricity imports during peak periods and optimize the operation of existing power plants.
Each BESS unit will have a capacity of 30 megawatts (MW) and 120 megawatt-hours (MWh), providing a combined total of 240 MWh of storage capacity, which will ensure more stable electricity supply, faster integration of renewable sources, and greater energy independence.
In August, EPCG confirmed that multiple domestic and international banks and funds have expressed interest in financing the BESS project. According to EPCG, investment projects are typically financed through loans rather than company funds, with repayment beginning once the systems are operational, allowing the loans to be repaid from generated profits.
A feasibility study conducted by EPCG confirmed both the technical and financial viability of the battery storage project.
