Montenegro is on the brink of its most significant investment phase in energy history, but the energy transition must be approached strategically and grounded in real capacities, stated Ivan Bulatović, Executive Director of the Electric Power Company of Montenegro (EPCG).

During the opening of the first panel on the second day of the MICEB 2025 conference in Budva, titled Shaping the Future of Sustainable Energy: Experiences from ELES and EPCG, he assured that the Montenegrin power system remains stable.

“However, for a safe and sustainable transition, it is crucial to avoid rash decisions, particularly regarding the phasing out of existing thermal plants without viable alternatives,” emphasized Bulatović, according to Media biro.

At the conference hosted by the Faculty of Economics, Bulatović highlighted key initiatives undertaken by EPCG, including the Gvozd and Gvozd2 wind farms, the development of new solar facilities in Nikšić, the utilization of Steelworks infrastructure, the modernization of the Perućica HPP, and a tender for battery systems…

“By year-end, we aim to integrate 100 new megawatts from renewable sources—this represents a significant advancement for a power system of our scale,” Bulatović stated.

Decarbonization with a Pragmatic Approach

Highlighting the need for approximately 33 billion euros for full decarbonization in the Western Balkans, Bulatović asserted that Montenegro cannot bear this burden alone without additional support from the EU. He underscored the crucial role of ecological rehabilitation of the Pljevlja thermal power plant, essential for meeting European standards and ensuring supply stability.

“We cannot deactivate current capacities until we have the technological and market capabilities to maintain system balance. Dependence on imports is neither technically nor strategically viable,” he noted.

Infrastructure and Regional Connectivity

Discussing energy connectivity, Bulatović emphasized the significance of the submarine cable to Italy and the forthcoming link to Serbia through the Pljevlja-Bajina Bašta transmission line. He cautioned that Montenegro must navigate the challenges imposed by the European CBAM mechanism, which could further complicate electricity exports from coal.

“Implementing CBAM without prior alignment of infrastructure and markets risks compromising the competitiveness of our energy resources,” Bulatović cautioned, urging the EU to grant the region an exception or transitional period. He particularly lauded the Kruševo and Komarnica HPP projects, with Kruševo identified as a reversible plant in collaboration with the French EDF.

“Pumped-storage systems represent the most efficient means of battery balancing amidst a high influx of renewable sources,” Bulatović remarked, expressing regret over Montenegro’s earlier delays in projects like Buk-Bijela. He sees energy as a significant growth opportunity for Montenegro.

“If Austria and France can strike a balance between ecological concerns and development, so can we,” Bulatović concluded.

Mervar: Real Transition Instead of Idealism

Following Bulatović, Aleksander Mervar, CEO of Slovenian ELES (the national transmission system operator of Slovenia), presented on the challenges faced by the EU in transitioning to renewable sources.

He highlighted the absence of technical solutions for balancing systems reliant on solar and wind energy prior to establishing an adequate electricity grid, and cautioned against neglecting the development of the transmission network.

As a vital entity for the stability and security of Slovenia’s electricity system, ELES oversees the management, maintenance, and development of the high and very high voltage network, alongside balancing electricity production and consumption in real-time.

Mervar disclosed that the company has invested a billion euros in the transmission network and infrastructure over the last 15 years, with 150 million sourced from EU and other funds.

He introduced projects such as SynchroGrid, GreenSwitch, and TUN, alongside an innovative system for dynamically assessing the thermal capacity of transmission lines, already launched in the Australian and Canadian markets.

Mervar assessed that the EU’s energy strategy often leans more toward economic interests than sustainable ecology, asserting that “no country should uncritically emulate the models of others.”

He also cautioned against contradictions in European energy policy, where nuclear and thermal plants are decommissioned even as new gas capacities are being developed.

Mervar expressed skepticism regarding “green hydrogen,” claiming that current concepts lack practical sustainability, and he warned against the dangers of mimicking foreign models without considering national contexts.

Emphasizing the need for an energy strategy rooted in reality rather than illusion, he counseled Montenegro to “attend carefully to decarbonization,” noting the abundance of coal in the Pljevlja Mine and the challenges of rapid decision-making in the Montenegrin system.

The panel concluded with a consensus on the necessity for Montenegro to pursue a green transition, albeit with a realistic, technically and financially sustainable approach.

Both Bulatović and Mervar concurred that transmission system operators are crucial to maintaining energy flow stability, and that strategic planning is essential for ensuring long-term security, competitiveness, and environmental sustainability.

The discussion underscored the importance of regional cooperation, prudent investment, and adaptive European policies that acknowledge the specific contexts of smaller systems like Montenegro’s.

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