Montenegrin state-owned power utility EPCG has taken a significant step forward in expanding its renewable energy portfolio with the construction of a new small hydropower plant (SHPP), following the signing of a turnkey agreement with local engineering firm Vigoris Ecotech. The contract covers the complete project delivery, including detailed design, civil works, equipment supply, installation, testing, and commissioning.
The agreement was awarded through an open public procurement procedure, with a total investment of €6.8 million (excluding VAT). The project forms part of EPCG’s ongoing capital investment program aimed at strengthening domestic energy generation.
The Otilovići plant will feature two horizontal Francis turbine units, providing a combined installed capacity of 3.2 MW. Annual electricity production is expected to reach around 11 GWh, adding significant renewable output to Montenegro’s national electricity system. EPCG CEO Zdravko Dragaš described the project as a key step in enhancing domestic generation capacity and advancing the company’s long-term development strategy, emphasizing the commitment to reliable, sustainable, and locally sourced energy while applying modern technical standards.
SHPP Otilovići is listed as a priority project within both EPCG’s strategic plans and Montenegro’s broader hydropower development framework. Once operational, the plant is expected to supply electricity for approximately 1,800 households annually.
In addition to energy production, the project will deliver environmental benefits, including an annual reduction of around 7,600 tons of CO₂ emissions. EPCG stated that the investment aligns with its broader efforts to expand renewable assets, enhance supply security, and generate measurable benefits for citizens and the economy.