NewsMontenegro, It would be useful for energy company EPCG to find the...

Montenegro, It would be useful for energy company EPCG to find the best solution in defining the purchase price of electricity

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According to the Ministry of Capital Investments, it would be useful for Elektroprivreda and the owners of small, wind and solar power plants in a partnership to find the best solution in defining the purchase price of electricity and to sign a cooperation agreement for the next year on time.

The MKI told Pobeda that the department is there to mediate and provide incentives for a quality agreement. They stated that in the first ten months EPCG saved EUR 73 million thanks to the purchase of electricity from producers from renewable sources (RES).

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“Taking into account that the Energy Balance for the next year plans to produce close to 500 gigawatt hours (GWh) from RES, i.e. 14 percent of the total planned electricity production, our position is that it is important that this energy remains in the energy portfolio of Montenegro, because otherwise, it may happen that any missing quantities have to be procured at market prices”, said the MKI.

About ten days ago, the owner of the company Igma Energy from Andrijevica, Igor Mašović Pobedi, said that certain privileged producers plan to use the contracted opportunity to exit that status for a minimum of 12 months and sell energy on the stock market. Of course, if EPCG does not increase the purchase price, as Bosnia and Herzegovina (BiH) did, which pays preferential producers EUR 180 per megawatt hour.

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“Entering the market is a business decision of those producers, and bearing in mind EPCG’s interest in continuing to purchase that energy, it is necessary to prepare an eventual offer that would be based on clear economic principles.” “Certainly in order to achieve the best possible cooperation, it is unquestionable that we mediate in that case”, said the Ministry of Interior.

EPCG board president Milutin Đukanović announced last year, shortly after taking office, that he would request a review of fees for RES. This year, however, he asked for an agreement between the Government and RES representatives regarding the purchase price of electricity from those sources.

MKI stated that the incentive model for RES producers had its positive side, and the most significant result was the savings achieved by EPCG, which mitigated their current negative business. They stated that the energy of privileged producers is not negligible, as it is about 500-550 GWh.

“This year, EPCG bought a kilowatt hour on the stock exchanges in Hungary for an average of 27.318 cents, and from OIE for 8.5 cents, saving EUR 73 million”, MKI said.

The Montenegrin electricity market operator (COTEE) buys a kilowatt hour from MHP for 7.457 to 11.11 cents, from a solar power plant for 10.8 to 12.3 cents, and from a wind power plant for 9.6 to 10.086 cents per kWh. This year, EPCG buys electricity from COTEE at a price of 8.5 cents per kWh.

“As you can see, the energy of some producers of MHP this year is not even encouraged, since the price of their production energy is lower than the price at which EPCG buys it”, said the MKI.

MKI stated that the realized price difference between the contracted prices with RES producers and the one that was valid on the world market, for the quantity taken from RES producers, is significant and represents a financial benefit for the supplier, ie EPCG, and therefore for all citizens.

From that department, they point out that they support the EPCG initiative to retain the energy of privileged producers in the production portfolio of Montenegro. MKI states that it is clear that from the point of view of EPCG, the price of electricity of 8.5 cents per kWh, in a year when electricity reached a price ten times higher, is more than favorable.

MKI reminded that RES producers have the legal possibility to leave the privileged producer status and place electricity on the open market for a minimum of 12 months.

MKI emphasizes that they support the development of renewable energy sources and protect the interests of our producers and citizens, local media writes.

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