Good business results are a big flywheel for projects from renewable energy sources

The good business results achieved by Elektroprivreda (EPCG) since the beginning of the year are a great impetus for the implementation of projects in the field of renewable energy sources, but also an encouragement for the management, announced the president of the company’s Board of Directors, Milutin Đukanović.
He said that the good business results encourage the management, but also the Government and other institutions, to go ahead with the strong implementation of projects in the field of energy.
Đukanović, on the first anniversary of the implementation of the Solari 3000+ and 500+ project, said that Montenegro has exceptional solar potential, and that with so many sunny days, it can be said that the sun is to Montenegro what oil is to Saudi Arabia.
When it comes to the Solari 3000+ and 500+ project, he said that he expected a much faster implementation, but that he is aware of the difficulties they are still facing.
– Only when the implementation starts do you see the obstacles, and the legal ones were really incredible. Let’s say that in order to install a three KW solar power plant on the house, urban planning and technical (UT) conditions were required. Also, the public procurement process is very slow. A public call is announced, then someone has an objection, then the tender is extended for ten days, then the public call ends, then we rank, then we publish the ranking list, then someone complains, then it goes to the appeals committee – explained Đukanović.
He reminded that they fought and lobbied in the Parliament to adopt laws that would benefit the energy sector.
– Thus, the rate of value added tax (VAT) for solar panels was lowered from 21 percent to seven, now it is not necessary to provide UT conditions for power plants up to one MW, we received an interpretation from the Ministry of Finance that the equipment used for further sale in to the Solari project 3000+ and 500+ exempted from the public procurement procedure. But there are internal procedures and ISO standards – stated Đukanović.
He believes that after some time he will be satisfied with the dynamics of the realization and the achievements.
– Of course, we want to work faster and better. We opened a new company that does installation and in the future maintenance of photovoltaic systems. We have trained 400 fitters, it is not easy to operate solar power plants on roofs. We are proud of that fact – announced Đukanović.
The advantages of solar installation were promoted a year or more ago, when consumers applied, and include, among other things, the construction of power plants whose power can cover consumption.
– At the moment when the solar system is installed, the bills for the consumed electricity are zero EUR, with the fact that the consumer has to pay for the equipment. We raised a loan of EUR 30 million with a fixed interest rate of 1.6%, for ten years, with a grace period of two years. We transfer that credit to the consumer. Some consumers will pay for five years, and some for eight, but through those installments we made the allocation for the equipment less than the average electricity bill until then – explained Đukanović.
He added that buying goods in bulk saved at least ten percent of the investment.
– The Eco Fund will subsidize another 20% of the total investment, as EPCG paid funds to the Fund based on the compensation for CO2 particles emitted by the Thermal Power Plant (TE). In order to operate in accordance with European directives, we are obliged to pay fees for those emissions, and we paid that money to the Eco Fund and directed it to consumer subsidies – said Đukanović.
These are, as he assessed, immeasurable advantages, and after six or seven years, electricity will be free for the consumer.
– We witnessed that last year, in July and August, the price of electricity on the market was 500 EUR per KWh, and now imagine when we no longer deliver energy from our sources to that consumer at 50 EUR, but we can export the surplus that we are now generating at a significantly higher price. This is a big profit for EPCG, of course it will be even bigger when we provide tens and hundreds of new megawatts of energy – said Đukanović.
He announced that their business philosophy – produce where you spend and enable the consumer to produce as much as he consumes, means free energy in the future.
– Other projects are larger power plants. We believe that it would be good if the unemployed were given the right to install these power plants, but a good option is also to connect solar power plants to the hydropower infrastructure. We don’t have problems with connection there either, and that is one of the important facts – said Đukanović.
He added that the situation regarding solar power plants is excellent, and that care will be taken to balance the system.
– Montenegro has the best potential for balancing in Europe, because we have outstanding hydroaccumulations: Pivsko jezero, Slano and Krupac. Hydroelectric power plant (HE) Piva can react quickly, so let’s say that if today we predicted that tomorrow from 12 to 2 p.m. we will produce so much solar energy, and in that interval a cloud appears, Piva can react quickly – explained Đukanović.
When it comes to the assumptions for the start of work on the construction project of the Gvozd wind power plant (WE) on the Krnov Plateau, he said that progress is being made, but slowly, and that it exceeds the capabilities of EPCG.
– We have done everything we can, but we are facing serious difficulties and that is why we need a stable political situation, a stable Government, to solve these problems. We cannot allow that, because of someone who claims that a windmill threatens the habitat of bats, we are three months late with such an important project. Then the Ministry of Agriculture does not allow to cut down one hectare, two forests and we are still waiting – said Đukanović.
He added that annexes and contracts on the financing of the VE Gvozd project will be signed soon and that progress is being made.
– When I was appointed to this position, in March 2021, I was told that in September of that year, the works on the access roads and the implementation of the VE Gvozd project would begin. We are witnessing that the works have not started yet, but I think they will this September – said Đukanović.
He believes that the Komarnica and Kruševo hydroelectric power plant projects are great, but also that only the people can judge the dilemmas that exist in this regard.
– Citizens should simply be asked if they are citizens in order to build the Komarnica HPP, organize a campaign for 15 days, offer arguments for and against, face opinions and some judgments, so whatever happens. In any case, we will have strong and irrefutable arguments, especially when we announce the financing methods – announced Đukanović.
He said that they do not shy away from the possibility of the Chinese being financiers, and that there are certain pressures from the West not to cooperate with the Chinese.
– However, they all run to China, and they don’t give to us. And why would they run away from that money? The Chinese have mastered new technologies, informatics, they are great, they have stable finances and these projects should be developed in that way, the state should not go into debt, and the one who worked and financed should collect his share of the profits they will make, whether roads, whether power plants – said Đukanović.
According to him, Montenegro is getting something new, new jobs.
– It is a complete revival of Nikšić and the whole of Montenegro. These are opportunities and we have clear plans to realize them and we have strong arguments. We listened to ecologists, whose story is not ecological, but energy-financial. This means that there are no problems with ecology. Someone was given the task of obstructing, so when he saw that he lacked arguments, he turned to another place, to invent – said Đukanović.
The value of the Ironworks will increase
He believes that the entry of EPCG into Željezara Nikšić is one of the better moves, but that it needs to be done.
– We paid Željezara EUR 20 million, of which we received EUR 15 million from the Government based on our own shares. We wouldn’t have seen a cent from the Government if we hadn’t announced that we were ready to buy Željezara – said Đukanović.
He added that now the restrictive assessment of the Ironworks, made by the relevant institutions, says that it is worth 53 million, and when the solar potential is taken into account, its value will increase by at least another ten million.
Đukanović reminded that one of the reasons why they bought Željezara was the intention to develop the production of substructures and structures for mounting solar power plants on earthen surfaces in the factory’s facilities.
– This is being actively worked on in Željezara, but I would like it to go faster. I’m not going to hide it, it’s been three months already, and we still don’t have a workshop drawing of what the construction should look like and how much it will cost us. The production of structures and substructures should be one of the most important activities of the Iron and Steel Plant, if only we start working and then we have no upper limits – announced Đukanović.
As he said, solar power plants with an installed power of 60 to 70 MW will be built in Željezara, which will bring benefits to everyone.
– Last year was not easy, when we were paying for energy at enormous prices, it was difficult to talk about investments, but we did not shut down the project, but when it was most difficult, we continued, because we unequivocally believe in it – said Đukanović.

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