The European Bank for Reconstruction and Development (EBRD) and the European Union have committed new investments in hydropower to support Serbia in the quest to improve green energy transition. The two partners are financing a renovation project at the Vlasinske hydropower cascade, a strategic move toward further modernization of the country’s energy infrastructure, with increased utilization of renewable sources in its general energy mix.
The EBRD is going to extend up to €67 million financing to EPS to reconstruct the Vlasinske hydropower cascade. Additionally, the EU will contribute to the investment by providing an amount of €15.4 million through the Western Balkans Investment Framework (WBIF). Thus, this joint effort by these institutions portrays their interest in Serbia’s transition towards a cleaner energy future.
Revitalization of Serbia’s oldest hydropower system
Originally built in 1946, the Vlasinske cascade is one of the oldest hydropower plants in Serbia. The project will extend the plant’s life and boost its capacity by 8 MW, bringing the total to 137 MW. The facility will help Serbia reach its energy demands while going towards cleaner energy sources.
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Strengthening Serbia’s Energy Security and Sustainability
Matteo Colangeli, the EBRD’s Regional Head of the Western Balkans, said, “We are pleased to be financing the reconstruction of the Vlasinske hydropower cascade, an important project for Serbia’s energy security, and increasing renewables’ share of its generation mix, including by enabling greater integration of intermittent sources like wind and solar.”
He added, “Serbia is making progress on its green energy transition, which is crucial to maintaining economic competitiveness and raising environmental standards. The EBRD is committed to continuing to support this journey through more investments, technical assistance and policy advice.”
Transitioning to Clean Energy
The Vlasinske hydropower project plays a key role in Serbia’s shift from coal to cleaner energy and meeting EU standards. Through this investment, Serbia is modernizing its infrastructure and creating a path for future renewable energy projects.