Energy Development Strategy Montenegro

1 Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK Podgorica, December 2007 _____ Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK _____ Energy Development Strategy OF Montenegro BY 2025 MINISTRY FOR ECONOMIC Development OF Montenegro Rimski trg 46, 81000 Podgorica Copyright Ministry for Economic Development Podgorica, December 2007 Any request for reproduction of all or part of this publication must be addressed to the Ministry for Economic Development ! Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK i Table I.

2 Abbreviations and symbols Symbol Meaning AD Akcionarsko dru tvo (Shareholding Company) BAT Best Available Technology BOT Build8 Operate8 Transfer CANU Crnogorska Akademija Nauka i Umjetnosti (Montenegrin Academy of Science and Art) CDM Clean Development Mechanism CG Crna Gora ( Montenegro ) CO2 Carbon Dioxide DBOT Develop8 Build8 Operate8 Transfer EC European Commission EES Electro8energetic System EIHP Energy Institute Hrvoje Po ar EPCG Elektroprivreda Crne Gore (Electric Power Company of Montenegro ) ES Energy System ESCO Energy Service Company EU European Union EU815 Fifteen states of European Union EUR Euro EUR/cap EUR per capita GDP Gross Domestic Product GDP/cap GDP per capita HPP Hydropower Plant IEA International Energy Agency IREET Institute for Research in Energy , Ecology and Technology KAP Kombinat aluminijuma Podgorica (Aluminum Plant in Podgorica) LNG Liquified Natural Gas LPG Liquified Petroleum Gas MEDEE Modele d'Evolution de la Demande d'Energie (Model of Energy Demand Development )

3 Monstat Statisti ki zavod Crne Gore (Montenegrin Bureau of Statistics) NOx Nitrogen Oxide NRSE New renewable sources of Energy OPM Open pit mine PHLG Permanent High Level Group RoM Republic of Montenegro RSE Renewable sources of Energy SA Sensitivity Analysis SEE South8 East Europe SI System of International units Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK ii Symbol Meaning SO2 Sulphur Dioxide TL Transmission line TPP Thermal power plant TS Transformer station UNESCO United Nations Educational.

4 Scientific and Cultural Organization UNFCCC United Nations Framework Convention on Climate Change UNIDO United Nations Industrial Development Organization UNMIK United Nations Interim Administration Mission in Kosovo USD US Dollar WASP Wien Automatic System Planning Package N eljezara Nik i (Steel Plant Niksic) Table II: System of International Units (SI) Category Unit Sign Dimension Basic units Length Metre M m Mass Kilogram Kg kg Time Second S s Electric current Ampere A A Derived and special units Area m2 m2 Volume m3 m3 Energy Joule J kg m2 s82 Power Watt W kg m2 s83 Voltage Volt V 8 Table III.

5 Prefixes in SI units Factor Prefix Symbol 1015 Peta P 1012 Tera T 109 Giga G 106 Mega M 103 Kilo k Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK iii Throughout the world different Energy mesurement units are used in practice, such as: joules (J), British Thermal Unit (Btu), calories (cal), kilowatthour (kWh), etc. (Table IV), while the Strategy uses primarily J as prescribed SI unit for Energy and sometimes Wh as the most commonly used electrical Energy measurement unit (both with appropriate prefixes).

6 In order to provide possibility of comparison with Eurostat statistics, ton of oil equivalent (toe) is used occasionally. While J, kWh and cal are precisely defined units for toe, for ton of coal equivalent (tce) and Btu international conventions and agreement apply, under which: 1 toe (ton of oil equivalent) = 10 Gcal 1 tce (ton of coal equivalent) = 7 Gcal 1 Btu = 1, J Table IV: Transformation factors between Energy units Multiply with: To the unit TJ Gcal Mtoe MBtu GWh From the unit Terajoule (TJ) 1 1 x 1085 Gigacalories (Gcal) x 1083 1 1087 x 1083 Million tons of oil eqivalent (Mtoe) x 104 107 1 x 107 11,630 Million Btu (MBtu) 1 x 1083 x 1088 1 x 1084 Gigawatt8hour (GWh) 860 x 1085 3,412 1 Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK iv TABLE OF CONTENTS 1.

7 PRELIMINARY 1 2. 5 3. MAIN STRATEGIC 7 4. Strategy Development 9 INSTITUTIONAL REGULATORY DOMESTIC LEGISLATION AND RELEVANT INTERNATIONAL EUROPEAN DIMENSION OF MONTENEGRIN Energy 5. Energy SECTOR OF Montenegro IN THE PERIOD 13 Energy SECTOR Energy SECTOR POSITION IN THE PRIMARY Energy Energy IMPORTS AND PRIMARY AND FINAL Energy TOTAL Energy ANALYSIS OF THE ELECTRICITY Energy EFFICIENCY AND ELECTRICITY PRODUCTION, TRANSMISSION AND DISTRIBUTION OF LIQUID FUEL HEAT MAJOR CONSUMERS OF ENVIRONMENTAL SOCIAL ASPECTS AND PRICES OF Energy INFORMATION 6.

8 KEY ASSUMPTIONS FOR THE 21 7. Development OF Energy OF Montenegro BY 22 Existing scenarios, plans and strategies of the overall Development of Montenegro 22 Water industry RESERVES IN THE EXISTING Energy SYSTEM REVITALATION AND RECONSTRUCTION OF EXISTING Strategy FOR EFFICIENT USE OF Public Industry and economy ..26 FINAL Energy CONSUMPTION UNTIL Scenarios of Gross Domestic Product (GDP) Main assumptions for calculation of the final Energy Consumer structure and forecast of final Energy consumption by Development OF USE OF HYDRO Theoretical potential.

9 30 Use of hydro Development OF USE OF COAL Coal Use of coal ..32 Development OF LOCAL Energy , COGENERATION AND HEAT Energy SUPPLY OF LIQUID Oil and gas potential in Supply of petroleum, petroleum derivatives and mandatory 908day reserves ..34 Energy Development Strategy OF Montenegro BY 2025 WHITE BOOK v Development OF LIQUID PETROL GAS, LIQUID NATURAL GAS, AND NATURAL GAS, SUPPLY Supply of liquefied petroleum gas (LPG)..35 Supply of liquefied natural gas (LNG) ..35 Natural gas supply.

10 35 Strategy OF INTRODUCTION OF RENEWABLE Energy Potentials of the renewable Energy sources (RES)..36 Strategy of exploitation of RESEARCHES IN Energy Development OF THE POWER GENERATION Electricity demand Scenario of introducing additional power generation capacities into the power system 38 Development OF POWER TRANSMISSION Development OF POWER DISTRIBUTION OVERALL Energy BALANCE UNTIL ASSESSMENT OF MACROECONOMIC EFFECTS OF ELECTRICAL Energy GENERATION IN 8. ENVIRONMENTAL 49 ANALYSIS OF Energy Development SCENARIOS FROM THE ENVIRONMENTAL PROTECTION EMISSION OF POLUTANTS OF ELECTRO8 ENERGETIC Energy INFRASTRUCTURE AND SPATIAL 9.