Montenegro’s 2025 power gap: hydropower weakness and Pljevlja outage squeeze supply

Montenegro’s electricity system entered 2025 with enough capacity to cover demand only briefly, but a combination of prolonged outages and unfavorable water conditions left the country short for much of the year, according to the national energy balance report. The gap matters for investors and grid planners because it reflects both generation constraints and higher-than-planned losses—factors that can tighten margins and increase reliance on balancing measures when supply weakens.

Supply fell below plan as Pljevlja stayed offline

Total electricity production reached 3,373 GWh, while gross consumption amounted to 3,410.71 GWh, exceeding projections by more than 5%. Overall generation came in 17.42% below planned levels, indicating a supply deficit across most months rather than a one-off disruption.

A key driver was the environmental upgrade of the Pljevlja thermal power plant, which remained offline for eight months. As a result, thermal generation was limited to 525.32 GWh. Despite the reduced output window, the plant achieved 89.34% of its reduced production target.

Hydropower underperformed; renewables were mixed

Renewable sources provided the bulk of generation at 1,847 GWh, but performance varied significantly by technology. Large hydropower plants were constrained by unfavorable water conditions: HPP Perućica produced 75.21% of its plan and HPP Piva delivered 73.81%. Small hydropower plants performed better than expected, reaching 106.32% of planned output.

Wind farms generated 91.44% of their plan, while solar generation exceeded forecasts at 112.52% of planned levels. Hydrological conditions across the year were below the long-term average, reducing hydroelectric output compared with prior years—down 17.5% from 2024 and down 34.1% from 2023, when water availability had been particularly strong.

Seasonal deficit after early-quarter coverage

The domestic system was able to meet consumption only during the first quarter, when both hydrological conditions and thermal generation were favorable. From May through October—when seasonal pressures typically intensify—the report describes a persistent deficit.

The generation mix was shaped heavily by Pljevlja’s extended downtime: hydropower accounted for around 60% of total production, thermal for about 22%, wind for about 13%, and solar’s share rose to roughly 4%.

Losses ran above plan despite improved transmission performance

System losses totaled 460.06 GWh, about 2.7% above planned levels (though still 2.45% lower than in 2024). Transmission losses were lower than expected at 131.47 GWh and also below the previous year’s level.

Distribution losses increased to 328.60 GWh—nearly 10% above plan—remaining broadly in line with figures from 2024.

Taken together, Montenegro’s results show how tightly electricity adequacy can hinge on both fuel availability and operational continuity: an eight-month thermal outage coincided with below-average hydrology that weakened hydro output well beyond normal variability, while distribution inefficiencies added further strain through higher losses.