COMPLIANCE WITH AND FULFILMENT OF ECOLOGICAL STANDARDS MAKE A PREREQUISITE FOR A SUCCESSFUL AND JUST ENERGY TRANSITION

The Project on ecological retrofitting is a precondition for further operation of TPP Pljevlja primarily in terms of fulfilment of ecological standards laid down in national and European legislation, i.e. Directive 2001/80/EC (Large combustion plants Directive), Directive 2010/75/EU (Industrial Emissions Directive) and national Law on industrial emissions (‘Official Gazette of Montenegro’ no. 17/2018 dated March, 19, 20219).

If the Project on TPP Pljevlja ecological retrofitting is cancelled, according to Decisions defining procedure on revocation of the integrated permit passed by the Agency for environmental protection, TPP Plljevlja will inevitably be closed.  

Works on ecological retrofitting encompass, inter alia, the following:

• installation of DSOX system,
• installation of DNOX system,
• improvement of ESP plant operation, 
• installation of the waste water treatment plant and

EU Decision 2017/1442 establishes the Best Available Techniques (BAT) conclusions as reference for setting permit conditions for plants covered by Directive 2010/75/EU, and those are the exact limit values encompassed by the Project scope of ecological retrofitting of TPP Pljevlja, even if as such they are not mandatory yet.   

Potential 15 M€ worth works do not refer to the Consortium member companies BB Solar and Bemax but to expert-specialist works on the boiler plant reconstruction to be executed by a renowned international contractor.   

As for the Project’s cost-effectiveness we hereby remind the public on previously published data according to which suspension of TPP Pljevlja operation for 12 months ( June 1st 2021 – June 1st 2022) would cause a cost of 158 M€ (whereof 109 M€ for electricity import and 49 M€ for fixed TPP costs), while an 18-month-suspension (June 1st, 2021 – December 31st, 2022) would cause a cost of 234 M€ (whereof 160 M€ for electricity import and 74 M€ for TPP Pljevlja fixed costs). Import prices, relevant to our system, are defined on HUPEX market. Hence, those are amounts that, even in a short period of time, exceed the ecological retrofitting costs by multiple times. If we are talking about a longer period, like 10 years, those costs would exceed a billion euro. The above stated makes clear the energy, economic and social problems Montenegro would face in case of the TPP Pljevlja winding-up or withdrawal of the ecological retrofitting.  

Finally, if the TPP Pljevlja phase-out period is set to 2030, even if EPCG is of the opinion that phase-out should happen in the period 2035-2040, the project on ecological retrofitting is a cost-effective one. Let us remind you of Germany that set 2038 as the year for cessation of coal use while some of EU member states such as Poland, Croatia, Bulgaria and Czech Republic have not set it yet. A Slovenian energy enterprise, HSE, is negotiating the deadlines with the State by proposing 2049 as the final year, even if their Government insists on 2033. The expected assumption is to reach a compromise and set the date somewhere in-between the two dates. None of neighbouring countries, including Republics of Serbia and Bosnia and Herzegovina have not set a phase-out year yet, but use the year of 2050 as a reference for cessation of coal use.

Based on all the above stated it is quite clear that further works on ecological retrofitting of TPP Pljevlja perfectly suit to our company and Montenegrin economy, and allegations on potential earmarking of additional funds (15 M€) to BB Solar and Bemax companies are simply incorrect, since those works would be carried out by relevant international companies.

We understand there are individuals trying to draw the media and Montenegrin citizens’ attention by making such sensational headlines and populistic accusations but we are quite sure that EPCG, being a corporate responsible company, has no right to please such individuals since its mission is not to be attractive to political adventurers but to secure energy stability and finally to contribute to economic strength of our State.