Montenegro's national power company experiences a significant financial setback, reporting a loss of around 24.5 million Euros during the first half of 2025.
Elektroprivreda Crne Gore (EPCG), Montenegro's national power company, has reported a challenging first half of 2025. The company posted a loss of EUR 24.5 million, a significant increase from the EUR 3.5 million loss during the same period last year, representing a 620% increase.
The total electricity production in the first half of 2025 was nearly 25% lower year-on-year, amounting to 1,058 GWh. This production represents 78.8% of the planned output, a decrease of 26% compared to the same period in 2024.
The operating result for EPCG was heavily impacted by the halt in production at the Pljevlja thermal power plant from March 31, 2025 due to environmental reconstruction and regular annual overhaul. As a result, the plant's utilization rate for the first six months was only 48.8%.
The company's increased losses were also due to a rise in electricity imports. EPCG spent EUR 35.8 million more on electricity imports in the first half of 2025 compared to the same period in 2024, totaling EUR 62.4 million. The average price of imported electricity was EUR 95.09 per MWh, significantly higher than the price charged to consumers on the distribution grid.
The total output at hydropower plants Piva, Perućica, and small hydropower plants (SHP) was 658 GWh, a 22% decrease compared to 2024. In contrast, TPP Pljevlja produced nearly 400 GWh of electricity, which is almost 18% or around 87 GWh less than in the same period in 2024.
The report also highlighted that the price charged to consumers on the distribution grid is significantly lower than the purchase price of imported electricity, having a major negative impact on EPCG's results.
Despite the challenges, EPCG has received consent to borrow EUR 50 million to finance electricity imports. However, as of the time of this report, no information was found regarding a company applying for a loan of 50 million euros in the first half of 2025 to finance electricity purchases.
The total expenses for EPCG in the first half of 2025 reached EUR 234.7 million. The total revenue for the company was EUR 208.1 million, leaving a significant deficit.
EPCG imported 656 GWh of electricity, marking a 52% increase in the volume of imports compared to the same period last year. Despite the high cost of imported electricity, it is supplied to distribution consumers at an average price of around EUR 45 per MWh.
As Montenegro's national power company, EPCG plays a crucial role in the country's energy sector. The company's current struggles underscore the need for strategic planning and investment to ensure a reliable and sustainable energy supply for the future.
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