EconomyPljevlja Thermal Power Plant enters final phase of ecological reconstruction and modernization

Pljevlja Thermal Power Plant enters final phase of ecological reconstruction and modernization

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The ecological reconstruction and modernization of Pljevlja Thermal Power Plant (TPP Pljevlja), a key energy facility in Montenegro, has entered its final phase. The project, valued at around €80 million including VAT, aims to align the plant with European and domestic environmental standards.

According to Elektroprivreda Crne Gore (EPCG), TPP Pljevlja will be temporarily offline from April 1 to November 15, 2025, to complete major modernization works. During this period, a temporary electricity production deficit is expected, to be covered by imports, potentially generating additional costs of up to €93 million.

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The project also includes construction of a district heating system for the town of Pljevlja, reducing the use of individual heating sources and improving living conditions for residents.

By June 2025, approximately €44.5 million of the nearly €58 million contract had been executed. The project, awarded in 2020 to a consortium led by Chinese company Dec International along with local firms Bemax, BB Solar, and Permonte, follows a turnkey model. Payments were disbursed in stages from 2020 to 2025, with a contract amendment in February 2025 adding €3.5 million for additional works necessary to integrate new installations with existing plant infrastructure.

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Construction works have been ongoing from April 2022 to mid-October 2025, and equipment installation from March 2023 to October 2025. TPP Pljevlja is scheduled to resume operations on November 15, 2025, followed by a three-month “cold testing” period and a two-month error correction phase. Compliance certification is expected by mid-2026, with final handover certification scheduled for mid-2028.

EPCG separately initiated a €15 million tender for boiler adaptation and additional payments cover the district heating works. Some in Montenegro view the ecological reconstruction as a potentially risky investment due to uncertainties surrounding the future of coal-fired energy and upcoming stricter EU environmental policies.

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