Saša Mujović, Minister of Energy and Mining of Montenegro - Water, wind and sun substitute for Pljeval coal

- We have a sufficient amount of electricity to cover the needs of the domestic market, and even to export certain amounts. Regarding the transmission and distribution network, I would say that the situation is satisfactory and that we can guarantee our end consumers a secure supply of electricity of adequate quality. In this respect, the situation is completely satisfactory, however, this does not give us room to be phlegmatic, because we face many challenges, as well as unresolved issues inherited from the previous period. We are working on the drafting of several important legal solutions, in the field of RES and oil and oil reserves, and we have intensified activities on the drafting of the National Energy and Climate Plan. Of course, the focus of our attention is the realization of projects of new energy sources, that is, of new energy facilities, so the analysis of the maturity of the documentation and further dynamics and models of implementation.

- All our steps go in the direction of building a new stable source of energy, because it is an obligation to our citizens, to provide them with the greatest degree of energy independence, especially in light of the fact that at some point we will have to give up the Pljevlja TPP. Projects in the energy sector depend on two things - it takes a significant amount of time to build and political stability. Without understanding these two important aspects, there are no new sources of energy. The global crisis in the energy market, which we witnessed, proved to the lay public that the energy independence of the country is its priority.

Therefore, we are talking about clear plans for the valorization of the potential that Montenegro is rich in, and which, unfortunately, has not been valorized until now. We are talking about projects in Komarnica, Kruševo, Ćehotina, which are all in a certain stage of the procedure, but each of them, some less, some more, has its own challenges that we must look at not only from the energy aspect, but also in the field of environmental protection and our obligations in that part in the process of EU accession.

Along with large projects, we also work on the valorization of wind and solar potential, as well as on strengthening energy efficiency, both in public institutions and in households through a series of projects. All this is not only of concrete benefit to our citizens, but is also in line with our green agenda.

- Regarding specific activities on the implementation of the Komarnica HPP, the previous government concluded a concession contract for the use of natural resources, for the construction, maintenance and use of the energy facility of the Komarnica hydroelectric power plant for the production of electricity with the Electric Power Company of Montenegro (EPCG). The evaluation procedure of the Environmental Impact Assessment is ongoing. The further order of steps in the project also depends on this assessment. Of course, in such important projects, we have to create a broad consensus and involve the interested public, which must be aware that the energy needs are growing. Ecology and energy can have a partnership relationship, which is the definition of sustainable development and another goal we intend to achieve.

- If we aspire to be part of the EU, then we don`t have much room for maneuver - we have to obey the principles, which in our case means that in the near future we have to give up our TPP. It is anything but easy to give up such a capital object. It is also difficult from the energy aspect, and even more difficult from the social and economic aspect, because we have to remember that the Pljevlja Thermal Power Plant is tied to itself and the Coal Mine with over 1,200 employees. The preparation of the National Energy and Climate Plan is underway, which we expect to define a road map in the field of energy. The policies and measures defined by the future NECP must be based on a mathematical model that should analyze different scenarios for reaching the goals that have been established until 2030, with a perspective until 2050.

Within the scenarios that have been developed, various variants of leaving coal as an energy source (the so-called coal phase out) and the future operation of the Pljevlja Thermal Power Plant are considered, which has a key influence on reaching the new goal of reducing CO2 emissions. The operation of the Pljevlja Thermal Power Plant in the coming period will also be affected by the CO2 emission trading system, i.e. the increase in the price of CO2 credits, which will make energy production from this energy facility less profitable and sustainable.

On the other hand, it is clear that the reduced energy production from the Pljevlja Thermal Power Plant in the coming period needs to be compensated from renewable energy sources. First of all, these are larger hydropower facilities that provide a significantly higher degree of controllability and stability (HP Kruševo, HPP on Ćehotina, etc.). It is also necessary to plan the construction of facilities for the production of energy from other sources of energy, primarily the sun and wind, with a special emphasis on reducing the negative impact of these facilities on the environment and society, while taking into account the technical aspects in terms of connection to the grid and balancing. The construction of new sources of electricity, their installed capacity and expected production will be carefully analyzed within the future NECP.

- So far, over 40 requests for urban planning and technical conditions have been submitted, mostly for large solar power plants, and previous governments have issued 30 such conditions for the construction of facilities with a total installed power of about 4,000 MW. We have significant projects that have been implemented, 33 small hydropower plants, two wind farms, projects whose implementation is expected in the shortest possible time, such as WF Grozd, and we also have a great interest of investors in investing in this area. Of course, this is all good news. However, we also have the issue of integrating new energy sources into the system. Let me say it quite frankly: we have more interest than it is possible to connect to the transmission and distribution system at this time.

For a successful energy transition, it is necessary to work on strengthening the electricity transmission and distribution network, in order to ensure the connection of new production facilities to the electricity system. So, we have the potential, we have the interest of investors and investments in the transmission and distribution network, which, however, for objective reasons, cannot follow the dynamics of building new facilities from these sources. Therefore, we will consider in detail the order of moves to arrange this area.

Also, the new Law on the use of energy from renewable sources will prescribe a market support mechanism for the production of energy from renewable sources, in order to achieve the most favorable energy prices for consumers and lower regulatory risk for investors. The right to incentive measures is realized in a competitive and transparent auction procedure, in which participants compete to acquire this right by offering the lowest feed-in tariff, i.e. market premium.

The application of this law should contribute to greater utilization of the available potential of renewable energy sources, acceleration of the green energy transition and the development of a sustainable and diversified power sector in Montenegro. Competitive auction processes will enable Montenegro to increase the share of electricity from renewable sources in its power mix and reduce dependence on coal, which will contribute to reducing the negative impact of the energy sector on climate change and the environment.

- First about the most important part of the question: there is no danger for our transmission network, because the projects that the network can handle will be connected first. The Montenegrin Electric Transmission System (CGES) has legally defined provisions for connecting to the grid with dynamics that do not endanger the operation of the system, so there is no risk for the state in that part of the dynamics of connecting to the grid. The development of energy and its dynamics is certainly dictated by the development of the electric power network, and that is why the focus should be on strengthening the transmission and distribution network. In that part, I believe that we have a credible operator of the CGES system who will definitely look at all the segments regarding the connection of power plants to the system. Investments of over 200 million EUR are planned not only to increase the capacities for the integration of renewable sources, but also to ensure a safer and more efficient system operation.

However, new energy sources encourage the development and improvement of energy infrastructure, but the speed of construction of the transmission network requires more time due to permits, expropriation, and resolution of property issues. For this reason, I am of the opinion that we should slow down with the issuance of permits, with the satisfaction that we have a great interest from investors. But, if we do not strengthen the transmission network and build the Trans-Balkan Corridor connecting Pljevlja to Bajina Bašta, all our stories about the integration of renewable resources are out of place.

- The announcement of the start of cooperation with one of the largest energy companies in Europe and the world is an indication that Montenegro is recognized as a potential partner for European countries. EDF Energy has an enviable experience in the production of electricity, and besides, France has already gone through certain phases of energy transition. I believe that this practical knowledge is very important for us, especially in the field of construction of energy facilities with respect for the highest environmental standards.

It`s time to build a new source of energy after a long wait, that`s why I expect a serious strategic partnership in the further development of capital energy projects. Montenegro abounds with significant potentials of wind, sun, water, and France has experience, practical knowledge and technology. It is up to us to find the best solutions, which will satisfy all parties, both the needs of the state to secure a new source of energy and thus increase the stability of the energy system, and the demands of the representatives of the civil sector to protect the natural resources of our country as much as possible.

My position regarding this mine is clear, there is no alternative for the health of the citizens and all those solutions that can endanger it, and which undoubtedly have an impact on the environment, are not acceptable.

- Back in 2005, Montenegro adopted the Declaration on the Protection of the Tara River and for Montenegro that story is closed. As someone who is aware of the advantages and disadvantages of our energy system, it would be illusory to expect me to be against an energy project, especially one in the field of renewable sources of electricity. However, no matter how much I love energy, above all I love and respect my country and its laws and I obey them, I respect the decision of the Parliament of Montenegro. I will certainly not do anything that will endanger Tara and the Durmitor National Park, but I will not be a stumbling block in the implementation of projects in neighboring countries, if and only if relevant analyzes and environmental impact assessment studies show that those projects have no impact on what is Montenegro protected by Declaration. Of course, that decision will be made by the competent institutions dealing with ecology and environmental protection.

Regarding the issue of Bileć Lake, the situation is very complicated for several reasons. We know that three states are involved, that there are hydropower facilities, and that we have analyzes and studies that show that Montenegro has the right to a share in that production. We have international legislation on our side as well. For me, the fact that the issue is complex does not mean that we should not solve it, quite the contrary. I have already taken the first steps after the trilateral meeting of the ministers of energy of the Republic of Serbia, the Republic of Srpska and Montenegro and, based on the agreement from the meeting, launched an initiative with my colleague from the RS, Petr Đokić, in order to start solving the problems that are burdening us as soon as possible. I also initiated the Agreement on cooperation with the Montenegrin Academy of Sciences and Arts in the field of energy, which also includes Bilećko Lake.

So, we have made significant steps and I expect that we will finally get started and enter into a process that will not be easy or short-lived, but it must be solved.