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Sekulić for CdM: With the electricity price, the Government is taking care of the most vulnerable

Dragica Sekulić

Minister of Economy, Dragica Sekilić, in the interview for CdM, says that the Decision on the abolition of the fee for renewable energy resources – OIE1 is particularly beneficial for the most vulnerable groups, for those who spend the least as well as for those who behave most rationally in the consumption.

Mrs Sekulić also speaks about the importance of the submarine cable, and announces the construction of one of the biggest solar power plants in Europe. In addition, she announced implementation of many projects. She claims that she will be constantly keeping track of how trades are going to respect the Sunday off. Second block of the Thermal Power Plant in Pljevlja is going to be built.

CdM: Trades won’t work on Sunday. However, some trade facilities will be exempt. Have you had any disputes over this matter with some trade chains? Can you tell us what facilities will be exempt and in what way?

Minister Sekulić: The Initiative for the amendments to the Law on Internal Trade, referring to Sunday off and holidays in trade sector, has emerged from the communication  with the employers and businessmen, through Chamber of Commerce. Acknowledging their demands and needs, we’ve come to the solution that we had proposed and the Government adopted and referred it to the Parliament. This is one of our ways of having an impact on the society as a whole, and providing more favorable and high-quality environment for more than 37 000 employees in the trade sector.

I believe that such decision won’t affect the turnover in trades, number of employees or alike. It will only have an impact on the buying habits of our consumers. Honestly, we believe this will be a relief for the families whose members work in such a complex and important sector.

In order to provide unhindered functioning of the whole system, we are going to introduce some exceptions – for some trade facilities that provide services necessary for our citizens’ basic functions (pharmacies, gas stations, kiosks, markets…). Be sure that inspection services will be on guard in order to provide full respect for legislative norms. Any violation of the law will be punished.

Sunday off for trade sector 

CdM: The Second block of the Thermal Power Plant in Pljevlja isn’t going to be constructed, is that so? Or, is there a model according to which it can be constructed?

Minister Sekulić: No, we haven’t given up on the construction of the Second block. However, that doesn’t mean that the project will be implemented at any cost, without taking into account our international duties and market signals we strive to respond to. Serious implementation of energy policy in Europe implies decisive steps in the direction of the implementation of energy transition – which first and foremost means using the potentials of the renewable energy resources with the aim of reducing emission of gases with the greenhouse effect.

Of course, being aware of the importance and potential that thermal-energy complex has, we’ve initiated activities aimed at finding a model that would enable the construction of the Second block in accordance with the most contemporary technical solutions, which also means that the project can be financed by the relevant international financial institutions. Project established in this way will be project that is sustainable and environmentally acceptable.

Ecological reconstruction of the Thermal Power Plant

CdM: When is the ecological reconstruction of the existing block going to begin?

Minister Sekulić: Reconstruction of the existing block of the Thermal Power Plant in Pljevlja, as exceptional thermal-energy complex of Pljevlja is worth more than € 40 million and is fully financed by the Electric Power Company of Montenegro. This reconstruction project is followed by the implementation of the project of heating that requires hard and intense work. The first step is tendering. Ecological reconstruction will enable the function of the Plant by most contemporary standards. We want to provide safe, reliable and efficient functioning of the system in the next 20 years. That will result in the reduction of harmful gases in the air.

German Staeg, as consultant of the Electric Power Company, guarantees that everything will be done according to the most contemporary standards.

In May we expect that tender for the contractor will be invited.

CdM: What activities does the Ministry undertake with the aim of constructing hydro power plant and wind farms and using their potential?

Minister Sekulić: We are aware of the potentials we dispose of and that’s why we’ve taken very seriously the implementation of projects that imply use of such potentials. In that context, I stress that we have signed the contract on the construction of one of the biggest solar power plants in Europe with 250 MW of power and that the activities on the preparation of the tender documentation for the lease of the land in Brajići intended for the construction of a wind farm are in the finishing phase now. We are also considering the initiatives for the tenders for the construction of the new solar plant on Velje Brdo. In addition, we are communicating intensely with the potential investors who are interested in these projects. Simultaneously, EPCG has intensified the activities on the preparation of the documentation for the construction of hydro power plant Komarnica and the possibility of inviting tender for the partner in this project. For that purpose, EPCG has signed the contract on the reconstruction of hydro power plants Piva and Perućica, construction of the solar power plant Brisk agora with €200 million, construction of the hydro power plant Komarnica with €260-290 million, hydro power plant Kruševo with €160 million and wind farm Gvozd, worth €70 million.

The country is taking care of the vulnerable categories 

CdM: Could the increase in the price of electricity have been avoided?

Minister Sekulić: Seems like the question of the changes in the price of electricity is taking on new dimension these days, especially after Prime Minister announced the abolition of the fee for renewable energy resources OIE1. I am glad to state that we kept our promise that we will keep improving the model of enhancing electricity generated for renewable energy resources and we will keep improving the tariff structure. With the decision on the abolition of this fee, we dedicate our attention to those who are the most vulnerable, who spend least and to those who behave rationally when it comes to electricity consumption.

This, together with the deferral of the increase in price and the application of tariff models, cumulative effect for the consumers will be – 2,5% – 5,5% reduction for the consumers whose monthly bills amount around €30.

It’s very important to notice that this decision is not the consequence of buying social peace, it wasn’t extorted under the public pressure. This is a result of serious analyses and it’s a step forward towards the application of the principle “the pollutant pays”. Bills of the households will be much relieved. Also, reduction of bills enables the implementation of a set of very important development projects as well as the revitalization and reconstruction of facilities and resources that we have inherited.

I have to point out that this isn’t the end of the story about the improvement of models that I was talking about. On the contrary! The Government will keep improving this energy segment in order to provide reliable and high-quality electricity supply.

Implementation of important energy projects is underway 

Submarine cable as important as the highway

CdM: What are the greatest benefits in setting up the submarine cable between Montenegro and Italy?

Minister Sekulić: Construction of the submarine cable is as important as the construction of the highway. They are two most important projects of our country and it’s such a privilege to be active participant in their implementation. The submarine cable project is an investment that required more than €1 billion and that provided direct connections with the energy market in the EU, positioning Montenegro as regional hub. We’re communicating with the investors and all the interested parties that would use this cable as infrastructure for product placement. Besides, construction of the submarine cable and accompanying infrastructure entails implementation of projects that will provide safer and more secure supply of the consumers in Montenegro creating additional requirements for economic growth and development.

Construction of the submarine cable and the accompanying conversion stations at the territory of Montenegro and Italy is the obligation of the Italian operator of the transmission system – Terna. Montenegro and the Montenegrin operator of transmission system – CGES, are in charge of the construction of facilities that will enable connection of the submarine cable to the electric and energy system. Around €92 million have been invested for the construction.

Project of the connection of electricity and energy systems of Montenegro and Italy is part of wider project – Trans-Balkan corridor which is going to connect Montenegro, Serbia and Romania with Italy, via submarine cable. This project as such is of huge interest for the EU and the European Community. Implementation of the project is very complex and it’s been projected in phases. Phases will be finished by 2024.

Partner for the EPCG, not a buyer

CdM: What investors are interested in the partnership with the EPCG? Is electric power company of Serbia interested?

Minister Sekulić: Motivated by the desire to start implementing development projects, two years ago we decided to buy A2A shares and thus managed to make EPCG state-owned.

Now, I can say that after ten years, EPCG is the company that has restarted the investment cycle.

Probably the most important fact is that neither citizens nor the state budget have felt the changes in the ownership of EPCG.

I’ve been telling this repeatedly – interest for EPCG is huge but what I have to point out is that we are going to look for the strategic partner, not a buyer. We don’t have to sell shares, far away from that. Our objective is to find a partner that will help us keep improving the system .

CdM: This Government has inherited several important development projects. What projects are planned to be finished this year?

Minister Sekulić: That’s correct. Well-created and successfully conducted energy policy has enabled several capitally important projects which will be completed during this term of office. Wind farm Možura is expected to be put into use this year. However, the project I find to be strategically important is the aforementioned construction of the submarine cable. The first phase of this project will be put into use this year too. All this means that the Government’s policy has been correct and that we should keep on with the application of responsible principle that guarantees the sustainable development of Montenegrin energy sector. With the implementation of the projects I talk about, and with those we have planned to start, I expect that citizens of Montenegro will soon feel additional benefits.

Miraš Dušević

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