Action Plan for the higher price of electricity

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The Government of Montenegro with the Action Plan for Strategy for Energy Development envisaged for the next five years the construction of a series of controversial energy projects, such as hydroelectric power plants on the Moraca or second thermal power plant in Pljevlja, while the amount of total investment in the same period is projected on the unbelievable amount of 1.8 billion euros. The document is rich in unrealistic estimates and projections of undocumented benefits, and almost completely rejects the concept of sustainable development as development of Montenegro, promoting intensive production of energy as a national priority and the primary public interest.

Ministry of Economy established the Action Plan for the current Strategy for Energy Development, which includes a time frame of realization of planned investment projects in the five-year period. Document the Ministry has not published on its website available to the general public, but it was last week submitted to non-governmental organizations for their comments.

According to the Action Plan, the National Power Company (EPCG) needs to invest about 600 million euros, of which half of this amount goes to the construction of the second thermal power plant in Pljevlja, or 315 million. This is 23 million less than the offer of Czech company Skoda Praha, which was selected as the best, so it is unclear how in the official document is stated lower price than the offered.

In addition, for the revitalization of the existing thermal power plant in the next five years EPCG should invest as much as 60 million euros and 32 million for the construction of a new ash and slag landfill in Pljevlja. At the same time it is very interesting that the document reveals the Government’s plan that the existing mining pit Potrlica turns into a new landfill, although at the public hearing for the draft of the detailed spatial plan to the public is presented a completely different location for the power plant, location Sume.

For the revitalization of the hydro power plants Piva and Perucica is planned 108.7 million euros, an additional 20 million should be invested in the reconstruction of small hydro power plants which EPCG managed through its daughter company Zeta Energy, while for the modernization of the distribution network is planned 62 million.

Action plan for the other state energy company, and Montenegrin Transmission System foresees an investment of 150 million euros, of which 62 million refers on the undersea cable project for the connection with Italy. That project suppose to be completed so far, but its implementation is delayed for several years.

In the Government’s document is particularly indicative that the construction of four hydro-power plants on the river Moraca, with planned investments of 367 million, is hereby designated as one of the priority project, despite the fact that previously is not confirmed the economic viability of the project, based on outdated data and would have enormous adverse consequences on the environment, including the risk of dam failure in the event of an earthquake.

Government with the Action Plan in megalomaniac manner provides a number of other projects in the energy sector, so for the construction of small hydro power plants are projected investments of 100 million, for the building a wind farm 192 million, it is planned gas network in the country which would cost 62 million, and the construction of the Adriatic-Ionian project worth 80 million euros.

Projects for construction of small hydro power plants or wind power plants are carried out mainly by private companies whose owners are allied or friendly associated with Prime Minister Milo Djukanovic, and the final consumers already pay subsidies for electricity produced from these sources, and this means that consumers finance profit to privileged companies.

Finally, the Action Plan states that the energy sector is of crucial importance for overall development of Montenegro, but such assessments are not accompanied by appropriate information that would confirm that the construction of the huge number of power plants in the future would lead to significant employment and other socio-economic benefits for the citizens.

However, what is certain is that in the coming years the increase in electricity prices would be significant if the part of the planned facilities is built, since one of the essential items in the electricity bill is for the current return on investment energy companies. At the same time, some projects, particularly those controversial as the second block of the thermal power plant on the Moraca, would have ihuge consequences for human health and the environment.

MANS

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