Pljevlja power station

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Pljevlja power station is an operating power station of at least 225-megawatts (MW) in Pljevlja, Montenegro with multiple units, some of which are not currently operating. It is also known as Pljevlja II (Unit 2).

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Pljevlja power station	Pljevlja, Pljevlja, Montenegro	43.334574, 19.32714 (exact)

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Unit-level coordinates (WGS 84):

• Unit 1, Unit 2: 43.334574, 19.32714

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year	Retired year
Unit 1	Operating	coal: lignite	225	subcritical	1982	2041 (planned)
Unit 2	Cancelled	coal: lignite	254	supercritical	2019	–

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit 1	Elektroprivreda Crne Gore AD [100%]	Elektroprivreda Crne Gore AD [100.0%]
Unit 2	Elektroprivreda Crne Gore AD [100%]	Elektroprivreda Crne Gore AD [100.0%]

Project-level coal details

• Coal source(s): Sumani I, Potrlica, Pljevlja mine

Background

The power station is a single-unit of 225 MW operated by the Montenegro utility Elektroprivreda Crne Gore. It has been in operation since 1982 and is fueled by lignite coal. It is Montenegro's only coal-fired power station and supplies up to 40% of the country's electric power.

Most fuel is supplied from Pljevlja coal mine. As of September 2022, electricity production in the Balkans was heavily strained by very limited coal supplies and depleted hydropower reservoirs. Coal unit failures at the Pljevlja power station and Kosovo A power station highlighted that energy security and reliability may be a serious concern for Winter 2022/23.

Delayed Refurbishment and Unlawful Operation

In November 2019, Elektroprivreda Crne Gore selected a consortium led by China’s Dongfang Electric International Corporation to refurbish the 225 MW plant to bring it in line with European Union pollution standards. The project, set to be completed by 2021, should extend the lifespan of the plant by 20 years.

In April 2021, the Energy Community Secretariat launched an infringement procedure against Montenegro for continuing to operate TPP Pljevlja despite the expiry of its opt-out period. Following the expiry of the 20,000 operating hours in late 2020, the plant can only remain in operation if it meets the stricter standards.

Refurbishment plans to extend the plant's life were still underway as of April 2022. The Executive Director of Elektroprivreda Crne Gore stated that though a transition to more sustainable energy options was on the horizon, the modernization of existing thermal plants was necessary to ensure energy security. In August 2022, the refurbishment project's manager stated that equipment installation would begin in March 2023. In addition, they announced that the plant would be offline for seven months in 2024 as they work to get the station within EU emissions regulations for particulate matter, nitrogen and sulphur.

In October 2022, the power utility stated that the construction would be completed in October 2024 and that power generation would not be impacted in 2023.

On 9 February 2023, the Secretariat sent a Reasoned Opinion to Montenegro related to the non-compliance with the LCPD as the plant continued to operate despite the expiry of its limited lifetime derogation. In March 2023, the Parliament amended domestic laws in order to allow Pljevlja power station to continue operating beyond the 20,000 hour limit set by the European Union. Refurbishment works were in progress.

The refurbishment works that started in April 2022 should have lasted for about 2.5 years. However as of February 2024, it was envisaged that the main works will be performed in 2025 when the plant will be offline for 9 months. This will force Montenegro to import large amounts of electricity at an estimated cost of EUR 160 million. In September 2024, it was reported that the planned refurbishment might be postponed from 2025 to 2026 instead, when the plant is expected to be offline for 6-8 months. The delay seems to be stem from issues related to preparing project documentation and procuring necessary equipment.

2024 is the fourth year that the plant operates unlawfully, operating for 6,450 hours in 2021, 6,949 in 2022 and 6,949 more hours in 2023.

Planned Retirement - Delayed

In 2021, Montenegro has committed to phase out coal only by 2035. In August 2021, Prime Minister of Montenegro Zdravko Krivokapić and the Minister of Finance and Social Welfare Milojko Spajić said the Pljevlja thermal power plant will most likely have to stop production in 2030 under the pressure of the Energy Community and due to European Union rules.

A media report from February 2023 stated that it was expected that a plan to shut down the station should be presented by the end of June 2023. In April 2024, the Minister of Energy and Mining of Montenegro Saša Mujović stated that the plant will operate for at least seven to ten years (i.e. up to 2034).

However in December 2024, the Ministry of Energy of Montenegro prepared and submitted the draft National Energy and Climate Plan (NECP) to the Energy Community Secretariat for a review, now stating 2041 as the planned retirement date. The proposed 2041 deadline is to allow time to install new power plants.

Past Expansion Plans

The Montenegro government through its power utility Elektroprivreda Crne Gore (EPCG) plan to construct a new EUR 300 million, 220 MW lignite plant at the site of the existing Pljevlja lignite power plant in Pljevlja. The plant would use lignite from the nearby Pljevlja mine. As of 2013 the process of finding a strategic investor was ongoing.

In April 2015 EPCG said it had chosen Czech engineering group Skoda Praha, owned by power utility CEZ, as preferred bidder to build the new coal-fired unit. Skoda Praha bid US$379 million to construct a 254-megawatt (MW) unit, while China Machinery Engineering Corporation (CMEC) offered US$376 million. Italian bank UniCredit will act as an adviser in selecting a possible partner to co-fund the project.

Italy's A2A, a minority shareholder of Montenegrin utility EPCG with management rights in it, has resisted the idea of constructing the new coal plant. However, the Government of Montenegro signed an agreement to continue cooperation with A2A on the plant. Construction is expected to start at the end of the year.

In October 2016 it was reported that the Czech Export Bank and export credit agency EGAP had decided not to finance the project. It remains unclear who will fund it. According to Bankwatch, the project is financially unviable due to the EU Emissions Trading Scheme and declining costs of alternative energies relative to coal.

In February 2017 the Environmental Protection Agency issued approval for the plant. In May 2017 Green Home, a Montenegrin environmental non-governmental organisation, submitted a complaint to the Administrative Court of Montenegro requesting the cancellation of the approval, saying it failed to include several elements stipulated by the Law on Environmental Impact Assessment, such as a justification for the decision, responses to comments provided during the public consultation, and a list of measures to address environmental damage during the construction and operation of the plant.

In December 2017 the Montenegrin government terminated the contract with Skoda Praha to build the plant, leaving the project with no main contractor and no financing. Although Chinese company PowerChina has shown interest in the project, the Montenegrin government has decided to de-prioritise it for now, in favour of upgrading the existing plant to comply with its environmental obligations under the Energy Community Treaty. However, the project has still not been officially cancelled.

In May 2018 Chinese state owned company PowerChina, through its daughter company Sechuan Electric, sent an offer to the Montenegrin government for the construction of the TPP Pljevlja’s second block. The size is to be determined.

In May 2019, EPCG Chairman Djoko Krivokapic said the construction of Pljevlja unit 2 is not a priority for the company, as it was focusing on renewable energy, namely wind and solar. EPCG is also planning to invest 60 million euros in environmental upgrades of TPP Pljevlja unit 1 by 2023.

On September 18, 2019, Montenegrin Premier Duško Marković announced that the Government is no longer pursuing Pljevlja II: "we will build something in line with our economic policy, sustainable development and preservation of the environment," he said.

In April 2023, UK–based Chayton Capital, the Government of Montenegro and Elektroprivreda Crne Gore signed a memorandum of understanding on the development of an industrial complex in Pljevlja, including a construction of a CFB boiler in line with the highest environmental standards to enable 0% to 100% biomass use, and investment in facilities for capturing and processing carbon dioxide and other waste gasses, according to the memorandum. The new unit would operate in parallel mode with the existing coal unit, and produce 150 MW of thermal energy. The fuel for the new boiler would be produced from waste lumber and other locally available resources.

Opposition

The Montenegrin NGOs Green Home and MANS have criticised plans by the Montenegrin government to choose a strategic partner for Pljevlja II without conducting a proper tender, stating that instead the government planned to sign an intergovernmental agreement and enact a "special law" on the project, creating a legal loophole to move forward on Pljevlja II without proving its benefits.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.