Wedoany.com Report-Feb 9, The long-awaited reconstruction of Serbia’s Vlasinske hydropower system is set to begin in spring 2025, backed by the European Bank for Reconstruction and Development (EBRD) and the European Union (EU). The project aims to modernise one of the country’s oldest hydropower systems, which has been in operation for more than 70 years without significant upgrades.

The Vlasinske system, consisting of four cascade plants, was built between 1946 and 1949 and has since played a crucial role in Serbia’s electricity generation. However, outdated infrastructure and increasing maintenance costs have necessitated a full-scale renovation.

“The project has been a long time coming,” said Marko Filipović, an engineer at Serbia’s state-owned electric power company, EPS. “We managed to keep the plant in operation with just regular maintenance and overhauls. But this has become increasingly difficult, more costly and time-consuming. The company, therefore, realised that it would be more efficient to invest in complete reconstruction and new equipment.”

The modernisation will be financed through a €67 million loan from the EBRD and a €15.4 million grant from the EU, secured under the Western Balkans Investment Framework. The investment will replace key components, including turbines, generators, and hydromechanical equipment, ensuring the plants can operate at full capacity with fewer repairs.

“The Vlasinske system is a priority as the oldest plant of this type, but there are plans to modernise other plants as well,” said Jovan Ilić, head of the Maintenance and Subsequent Investments Unit at EPS. “The reconstruction of the Bistrica and Potpec hydropower plants are imminent, as well as that of Djerdap 2. Future reconstruction projects will include the remaining EPS hydropower plants: Uvac, Kokin Brod and Pirot.”

Hydropower currently provides nearly 30% of Serbia’s electricity, but coal remains dominant, accounting for about 60% of production. With limited scope for expanding hydropower, Serbia has also begun investing in other renewable sources such as wind and solar, which currently make up less than 3% of the country’s energy mix.

Since 2020, the EBRD has supported Serbia’s efforts to scale up renewable energy through technical assistance funded by the Swiss State Secretariat for Economic Affairs (SECO). The country held its first renewable energy auction in 2023 and announced a second in November 2024, signalling a commitment to clean energy investment.