The tender for selecting a contractor for the fabrication, delivery, installation and commissioning of the A8 unit at the Perućica hydroelectric power plant will be announced by the end of the year, following consultations with the German Development Bank (KfW), which is financing the project, according to Elektroprivreda Crne Gore (EPCG).
“The contract with the top-ranked contractor is planned for mid-next year, after which project design and equipment fabrication will follow, leading to installation and commissioning of the unit. The projected operational launch of the unit is scheduled for the first half of 2027,” EPCG representatives told Vijesti.
They explained that the installation of unit A8 will increase the installed capacity of the Perućica hydroelectric plant from the current 307 MW to 365.5 MW, ensuring better availability of production capacity and operational readiness of the plant throughout the year.
“This investment will contribute an additional 50 GWh annually to Montenegro’s electricity system. Furthermore, the new unit will provide EPCG with greater flexibility in offering additional system services, enhancing the reliability of the power grid year-round,” EPCG stated.
EPCG and KfW signed a €40 million loan agreement in early September for financing the installation of unit A8 as part of the third phase of the reconstruction and expansion of the hydroelectric facility.
The loan has a repayment period of 15 years, including a grace period of five years.
This is the last of three loans provided by KfW for the modernization of the Perućica hydroelectric plant, with total investments under these joint arrangements exceeding €83 million.
The second phase of the project reconstruction and modernization of the Perućica plant, completed with the renowned company Voith Austria, included the reconstruction and modernization of units A5, A6, and A7, as well as partial reconstruction and modernization of units A1 to A4 and auxiliary units.
“In addition to work on the units, all five sluice gates in the Perućica hydroelectric supply system will be completely reconstructed with remote control capabilities. Water management optimization will be entrusted to a new Water Management System (WMS). This system, based on data from over 100 hydrological, hydraulic, meteorological, and precipitation stations, as well as hydrological, hydraulic, optimization, and predictive mathematical models, will automatically manage the entire supply system and the plant itself, ensuring optimal system utilization while maintaining safe and reliable operations,” the company explained.
Moreover, the system will provide significant support for short-term, medium-term, and even long-term production planning of the plant.
“Monitoring and managing the entire system will be based on a new SCADA system being implemented under this contract. The total value of the contract is approximately €32 million, with a deadline for completing all works set for 2027. This year, work has been completed on the Slano sluice, part of the work on the Povija sluice, as well as the reconstruction and modernization of units A1 and A2, while the reconstruction of unit A6 is ongoing. The implementation of the new SCADA system and the establishment of a network of measuring stations are also in progress,” EPCG stated.
The installation of an additional, eighth unit at the Perućica hydroelectric plant is one of the activities in the process of greening EPCG’s production portfolio and decarbonizing Montenegro’s energy sector.