Montenegro’s state-owned power utility EPCG has received two bids for the construction, delivery, installation, and commissioning of the new A8 turbine at its Perucica hydropower plant. The first bid was submitted by a consortium consisting of Voith Hydro from Austria, Končar from Croatia, and Elnos from Serbia. The second offer came from Slovenia’s Litostroj Power. The tender closed in mid-June, and EPCG plans to finalize the contract by autumn.
The A8 turbine is expected to be operational in 2027, increasing the plant’s installed capacity from the current 307 MW to 365.5 MW. This upgrade will improve year-round generation reliability and is projected to raise annual electricity output by around 50 GWh.
The project is financed by a €40 million loan from Germany’s KfW development bank. The loan includes a 15-year repayment period with a five-year grace period. The procurement process adheres to KfW’s single-stage, three-envelope system, which gives equal weight to qualifications, technical proposals, and financial offers. EPCG aims to complete evaluations, receive KfW’s approval, and sign the contract with the selected bidder before the end of the year.
To ensure minimal impact on current operations, the integration of the eighth turbine will be carefully coordinated with the existing facility. Once installed, the plant’s maximum water flow capacity will increase from 68 to 80.75 cubic meters per second. The project scope includes comprehensive electro-mechanical works—such as the turbine, generator, excitation and protection systems, and high-voltage equipment—alongside civil works related to water intake and discharge systems.
In addition to the KfW loan, EPCG has secured a €1.5 million EU-KfW grant to support consultancy services focused on the green transition of its energy portfolio. This project represents the final phase of three KfW-backed investment rounds aimed at modernizing the Perucica facility, with total funding now exceeding €83 million.