Page 113 - SE Outlook Regions 2023

Meanwhile, EPCG launched a €70mn project for reconstruction of the
Pljevlja coal-fired thermal power plant. The country hopes to upgrade it
so that it meets the EU pollution standards.

In August, Montenegro’s government proposed to scrap VAT on solar
panels as part of the measures it is drafting to mitigate the effects of the
expected energy crisis. The measure aims to support the faster
transition towards renewable energy sources that would secure the
country long-term energy independence.

The government also plans to lower the VAT on solar energy.

In November 2022, the state power company Elektroprivreda Crne
Gore (EPCG) announced a public call for participation in a subsidised
project to support the installation of individual photovoltaic panels. The
call refers to the construction of integrated solar power plants, through
financing and subsidising users for the installation of photovoltaic
systems up to 10 kW for individual residential buildings, or up to 30 kW
for legal entities and individuals as well as business owners.

EKO FOND will provide one fifth of the funds for the implementation of
the project through the allocation of subsidies of 20% for the installation
of photovoltaic panels for households, legal entities and individuals.

"The Solari 3000+ and Solari 500+ project, worth €30mn, marks the
beginning of an energy transition in Montenegro and one of the most
significant investments in the energy sector in the last 40 years," EPCG
said at the time.

The project should continue through 2023. Its goal is to reduce monthly
costs for electricity, to enable energy independence, to reduce carbon
dioxide emissions and preserve the environment.

The repayment period of the investment for users is up to 10 years. By
installing a photovoltaic system, the user becomes the so-called
customer-producer, who meets their energy needs from their own
sources, and any surplus of electricity will be delivered through the
distribution network, which will be financially settled at an annual level.

Also in November, EPCG signed an agreement with the US’ UGT
Renewables on the joint development of projects on the production of
electricity from renewable sources, as well as energy storage.

UGT Renewables’ CEO Adam Cortese said the US company will help
Montenegro in a swift and efficient transition to a cleaner, greener
energy generation base. Cortese said the main goal of the project is to
help Montenegro reach energy independence by producing all the
electricity it needs.

South Korean Hyundai Engineering is expected to join forces with UGT
Renewables and provide green energy solutions in Montenegro and the
Balkans.

In December, the European Commission announced that it will grant
€30mn to Montenegro in January 2023 as part of the EU’s energy
support package for the Western Balkans that should help the country

113 SE Outlook 2023 www.intellinews.com