Vlasina hydropower plant reconstruction deal signed
The European Union (EU) and the European Bank for Reconstruction and Development (EBRD) are joining forces to fund the reconstruction of the Vlasina hydropower plant cascade, an important step in modernising Serbia's energy infrastructure.
When Marko Filipović joined Serbia’s national electricity utility, Elektroprivreda Srbije (EPS) in 2012, as one of the top 110 engineering students in the country, the reconstruction of Vlasina hydropower plants had already been a topic of discussion for some time. With construction beginning in 1946, the Vlasina hydropower plant cascade is one of the oldest hydropower plants in Serbia.
The system itself is an engineering marvel, with two artificially created lakes, Vlasina and Lisina, connected by nearly 60 kilometres of canals and tunnels, supplying the plants with water.
The most impressive aspect is its location: one of the plants is built inside a mountain, and the Vlasina lake sits over 1,200 meters above sea level.
After seven decades in operation, maintenance and overhauls were becoming increasingly difficult and more time-consuming.
Today, however, that long-discussed reconstruction is finally on the horizon, with the support of the EU and EBRD. The EU is providing a €16 million investment grant to Serbia via the Western Balkans Investment Framework (WBIF) while the EBRD is providing a loan of up to €67 million to Serbia’s national electricity utility, for the reconstruction of the Vlasina hydropower cascade.
The project, expected to begin in the spring of 2025, will breathe new life into a critical piece of Serbia’s energy infrastructure.
“The investment project will focus on replacing essential equipment: we will replace all turbines, generators, primary and secondary hydromechanical equipment. Once installed, this new equipment will then ensure that the four hydropower plants can operate at their full capacity, without the currently frequently needed repairs. This will result in a much more balanced and stable electricity network and allow for a slight increase of generation capacity as well,” explains Marko Filipović, engineer at EPS.
This investment will not only extend the plant’s operational life but also boost its installed capacity by 8 MW, to 137 MW, immediately benefitting the 60,000 households it serves.
Matteo Colangeli, EBRD Regional Director for the Western Balkans, said: "The rehabilitation of the Vlasina hydropower plant cascade is an important project for Serbia’s energy security and to increase the share of renewables in its generation mix."
Vlasina Hydropower plant, (c) EBRD 2024
Coal still dominates Serbia’s energy landscape, accounting for around 60 per cent of electricity production. While hydropower provides nearly 30 per cent of Serbia’s energy, the decades-old infrastructure is creaking at the seams and needs modernisation. Plans are in place to modernise other plants such as Bistrica, operational since 1960.
Serbia’s clean energy landscape is evolving beyond hydropower, however. While the country is making significant strides in modernising its existing hydro plants, it faces limited capacity for expanding further in this area. This is why, in recent years, the country has begun to focus on increasing its share of intermittent renewable energy sources, such as wind and solar power, which currently account for less than 3% of the country’s energy mix.
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Transforming the energy sector is a key focus under Policy area 2 – green and digital transition – of the Reform Agenda for Serbia. This is the roadmap to bring the Western Balkans closer to the EU ahead of their accession. This investment project is financed under Flagship 4 – Renewable energy – of the EU’s Economic and Investment Plan for the Western Balkans.
More details about the project can be found here
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The implementation of the Economic & Investment Plan for Western Balkans directly contributes to the Global Gateway, EU’s connectivity strategy launched in 2021 aiming to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems across the world. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. Global Gateway aims to mobilise up to €300 billion in investments. Through a 'Team Europe approach', Global Gateway will bring together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.
