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EPS delays power generation at Kostolac wind farm over handover and contract issues

Serbia’s state-owned power utility EPS said the Kostolac wind farm is not currently generating electricity. The company attributed the lack of output to the project not yet being formally handed over by the contractor. EPS also rejected claims that any outage is linked to weather conditions.

Unresolved contractual obligations block final takeover

EPS said the facility has not been officially accepted as completed because outstanding contractual obligations remain unresolved. The utility cited an original completion deadline of 30 October 2024. More than a year later, EPS said the contractor has still not fulfilled all agreed requirements. Until those conditions are met, the utility will not issue the final takeover certificate.

Talks continue with contractors and turbine supplier

EPS confirmed it is continuing discussions with the contractors and turbine supplier Siemens Gamesa to address remaining issues. The company said completing the project is in the interest of stakeholders involved in delivery and financing. Those stakeholders include contractors, equipment suppliers, financial institutions, and project donors such as the European Union and Germany’s development bank KfW.

Trial operations and project specifications for 66 MW Kostolac

The 66 MW Kostolac wind farm began trial operations in late November 2025. EPS said the project delivered its first electricity to the grid during that period. The wind farm comprises 20 wind turbines installed on former lignite mining land within the Kostolac complex. EPS described it as its first wind energy project and part of efforts to diversify its generation mix.

Once fully operational, EPS said the wind farm is expected to produce around 187 million kWh annually. The company estimated this would be enough to supply approximately 30,000 households. The total project cost was reported at €144 million, financed through a €110 million KfW loan, a €30 million EU grant, and additional funding from EPS itself.

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