Montenegro clears EPCG to build SHPP Otilovići near Pljevlja

Montenegro has given the green light for state utility EPCG to move ahead with the construction of the SHPP Otilovići small hydropower plant near Pljevlja, a decision that matters for investors because it reduces procedural uncertainty while still imposing strict environmental and safety obligations. The Environmental Protection Agency concluded that a full environmental impact assessment would not be necessary for the project.

Approval tied to mitigation and compliance requirements

The future hydropower facility will be built at the existing Otilovići dam on the Cehotina river. It is planned with installed capacity of 2.96 MW and expected annual generation of about 11.56 GWh. Total investment is estimated at roughly €8.2 million, including VAT.

In its published decision, Montenegro’s Environmental Protection Agency said EPCG must still comply with all technical standards, environmental protection measures, and safety regulations during both construction and operation. Authorities also stressed that all mitigation measures set out in the submitted project documentation must be fully implemented.

Using existing infrastructure to limit environmental change

The project is designed around existing infrastructure—specifically the Otilovići reservoir and dam—without changing the current hydrological regime of the river system. Officials said the chosen location should significantly reduce environmental impact because the plant will be placed directly downstream from the existing dam structure.

Planned works include a water intake pipeline, a powerhouse with electro-mechanical systems, a control facility, and a substation to connect to Montenegro’s national electricity grid.

Permitting timeline and contractor scope

The Government of Montenegro issued urban and technical conditions for the project in 2023. EPCG submitted its environmental assessment request at the end of April this year.

Authorities also approved a 10-month extension for completing the first phase of development. Based on earlier statements from EPCG, construction could be completed by October 2027. This year’s work is expected to focus on main design preparation, securing permits, and completing additional environmental documentation, while on-site construction is expected to start in autumn and last for about one year.

EPCG has already signed a turnkey agreement with local company Vigoris Ecotech for delivery of the project scope, including detailed design, civil construction, equipment delivery and installation, as well as testing and commissioning.