Montenegro, Three companies left incentive system and now are selling the electricity they produce on the market, News
The companies Hidroenergija Montenegro, BB hidro and Viridi progresum, which manage 10 mini-hydroelectric plants (MHE), left the incentive system and now are selling the electricity they produce on the market, not to Elektroprivreda (EPCG), as was the case until now. BB hidro and Viridi progresum each have one mini-hydroelectric plant, while Hidroenergija Montenegro has eight energy facilities. This information was confirmed by the Montenegrin Electricity Market Operator (COTEE).
– Until entering the market, the listed privileged producers had incentive prices in accordance with the law and by-laws, and COTEE does not have insight into the prices at which they sell electricity on the market, but it is a matter of the purchase agreement of the mentioned producers and traders who are customers and energy – said COTEE.
The reason why producers left the incentive system is the higher selling price of electricity they can get on the market. Until last year, the price of electricity on the market was significantly lower than the contracted incentive price of electricity that EPCG, through COTEE, was obliged to buy from the owners of mini hydropower plants, while now the situation is completely different. Electricity prices on the market, that is, on the stock exchanges, are two or three times higher than the incentive price at which preferential producers sold electricity.
Several Dana sources from the energy sector said that until now, the owners of MHE, depending on the power, sold electricity from 70 to 90 euros per megawatt, while now on the market they can sell it from 100 to 150 euros. Dan asked the companies Hidroenergija Montenegro and BB hidro questions regarding the exit from the incentive system and asked them for details, i.e. the conditions under which they switched to working under market conditions.
Ranko Radović with 60% and Oleg Obradović with 40% are registered as the owners of Hidroenergija, which has been producing electricity from MHE since 2013, while the co-owners of BB hidra are Blažo Đukanović and Ivan Burzanović. For BB hydro, incentives are paid from 2020. Viridi progresum has four owners, and the majority is the company Perla from Herceg Novi.
Privileged producers have the right to exit the incentive system, which for years guaranteed them a higher electricity price and a guaranteed purchase of electricity, but, as Dan was told, only once. The government, that is, the state, with concession contracts, guaranteed them purchase at subsidized prices for 12 years out of the 30 that the contract lasts. When they leave the incentive system, it must be at least one year. Only after that period can they return to the incentive system.
The government Instructed the MKI to sign agreements with concessionaires
We learned that privileged producers left the incentive system last week at the Government session, when information was adopted on the regulation of the method of calculating the concession fee as a result of their exit from that system.
At that time, it was stated that the concessionaires left the system due to the higher price of electricity on the market than the incentive price. Given that the method of calculating income based on the sale of electricity on the market differs from the existing model, it is necessary to draw up an agreement on the method of calculating concession fees.
A few days ago, MKI was asked about the contracts concluded by the concessionaires, as well as about the calculation of the concession, but they did not receive answers to the questions.
Sign up for business news updates & special reports.
- February 16, 2023 Serbian Belkalhan calcite & graphite mining developer invites JV partners for joint critical raw materials exploitation
- March 28, 2023 Montenegro, A lot is expected from the upcoming summer season
- March 28, 2023 Many joint projects are in front of Montenegro and Serbia
- March 28, 2023 Saudi low cost airline Flyadeal will fly to Tivat during summer