INTEGRATED HYDROELECTRIC PROJECT
The Electric Public Power Company of Montenegro (EPCG) is in the process of establishing the list of potential SHPP projects that should be offered on concession by the end of this year. The project developer who obtains the concession on the construction of SHPPs could develop a CDM project with a significant potential of CERs, by means of bundling a couple or a few SHPPs on one river flow. This potential depends on the total installed capacity of the bundled projects, on the modality of bundling, as well as on the value of the carbon emission factor for Montenegro.
Due to the latter, the following project activity could be suggested as an example: two bundled SHPPs on the river Bistrica: SHPP Zdravac and SHPP Buce, with the objective to generate renewable electricity using hydroelectric resources. All electricity generated from these projects will be sold to the EPCG. The EPCG will dispatch the electricity from the hydropower projects to the end-users connected to the national power grid. The rationale for grouping all the projects in one is based on the fact that one company will build, operate and own both facilities. The project activity will generate GHG emission reductions by avoiding electricity generation and CO2 emissions from the coal fuel-fired power plant.
The construction of two small hydro power plants, one run-of-river type and another one reservoir type with small accumulation volume, with the capacity of 2.400 kW and 11.500 kW, respectively, has been foreseen. The project activity would supply the state electricity grid with the electricity in the amount of ~ 26 GWh/year.
The project activity could be developed as a project with the medium-high CDM potential. The barriers issue should be checked, especially the investment barrier, which depends on the Government’s incentives on the price of electricity from the renewable energy source, such as hydro energy. Since the construction of SHPPs in Montenegro is not a common practice yet, it could be said the project activity is additional. In order to decrease the transaction cost of PDD preparation in case of separately considered SHPPs Zdravac and Buce, the two locations have been bundled in one CDM project activity.
Applied methodology
Since the total installed capacity of the two bundled SHPPs is less than the limit of 15 MW, the simplified methodology for small scale projects “Renewable electricity generation for a grid” I.D has been applied for the calculation of GHG emission reductions.
GHG offset
It is estimated that the project has the capacity to reduce emissions of nearly 152.000 tCO2eq for the period 2008-2018.
Sustainability
The project activity will generate and supply the national grid with electricity, in a renewable, sustainable and environmentally friendly manner. One of the most positive aspects of the project implementation is the local companies’ involvement and job creation, as well as a uniform electricity consumption for the area of the municipality where the projects would be developed
Current status
Specific technical information have been collected through questionnaires and site visits.
Estimated investments costs
In the range of 12 to 16 millions EUR.
Local partners
Ministry for Economic Development, EPCG
