Montenegro’s state-owned power utility EPCG plans to launch a new tender in August for the construction of the Otilovići small hydropower plant (SHPP), after two previous procurement attempts were canceled. The project, valued at €8.23 million, would be built on the existing Otilovići dam on the Ćehotina River, with an installed capacity of about 3 MW and expected annual output of 11 GWh—enough to supply roughly 1,200 households.
EPCG said it is also considering involving international financial institutions as potential partners to help secure funding, in addition to following the country’s updated Public Procurement Law. The company stressed the plant’s importance as part of Montenegro’s energy transition, particularly for the Pljevlja region, where the Pljevlja thermal power plant may cease operations by 2041.
Construction is projected to take 18–24 months, but repeated tender delays have pushed the expected operational date beyond the initial goal of end-2026. The SHPP is intended to strengthen grid stability, support local economic development, and contribute to Montenegro’s renewable energy and climate goals.
