Serbia’s state-owned power utility EPS has obtained the necessary permits to start the reconstruction of HPP Vrla 2 near Surdulica in eastern Serbia. The project is linked to an investment valued at approximately €15.5 million, excluding VAT.
The reconstruction scope includes a full overhaul of the plant’s generating units, auxiliary systems, and hydromechanical equipment. Technical documentation for the works was prepared by Energoprojekt Hidroinženjering. The package covers civil, electrical, and mechanical designs, along with an environmental impact assessment.
Environmental approval for Vrla 2 documentation
The Ministry of Environmental Protection approved the environmental study related to the Vrla 2 reconstruction. The ministry also confirmed that no further review of the documentation is required. This approval supports the permitting status for the start of works at the site.
Vrla 2 part of Vlasina cascade modernization
The Vrla 2 reconstruction forms part of a wider modernization program for the Vlasina hydropower system. The program also covers the Vrla 1, Vrla 3, and Vrla 4 facilities. The stated program objective is to improve reliability, increase efficiency, and extend the operational lifetime of the cascade.
The broader rehabilitation effort began in late 2025, when EPS signed a contract with Energotehnika Južna Bačka. The refurbishment works under that agreement cover generating units, auxiliary systems, and hydromechanical equipment across the entire Vlasina cascade. The modernization program totals €109.7 million, with turbines and generators supplied by Andritz Hydro and Gamesa Electric.
EBRD loan and EU WBIF grant backing
The Vlasina modernization project is supported by international financial institutions. It includes a €67 million loan from the European Bank for Reconstruction and Development (EBRD).
The European Union has provided €15.4 million in grant funding through the Western Balkans Investment Framework (WBIF). This financing structure supports refurbishment activities across the Vlasina hydropower cascade, including Vrla 2.
