EPS, Serbia’s state utility, has secured approximately €107.5 million to modernise hydropower plants and develop more than 120 MW of solar capacity on land tied to former coal-fired facilities. The financing package combines a €100 million European Investment Bank loan agreed in 2024 with about €7.46 million in grants from the Western Balkans Investment Framework. The programme is designed to support both generation upgrades and new solar development.
Financing structure for hydropower modernisation and solar build-out
The European Investment Bank component totals €100 million, with the agreement reached in 2024. Additional funding of about €7.46 million is provided through grants under the Western Balkans Investment Framework. Together, the loan and grants underpin the investment plan for hydropower upgrades and associated solar capacity.
A substantial part of the programme will be directed to upgrading generating units at the Bistrica, Potpec and Djerdap II hydropower plants. Potpec is also due to receive an additional 13 MW unit as part of the works. The investment package further includes rehabilitation of the 129 MW Vlasinske hydropower cascade.
Solar development on former coal-related sites
EPS is considering ash-disposal areas and coal-storage sites linked to the Morava and Kolubara A thermal power plants for solar construction after their closure. The projects are described as being at an early development stage. The approach targets land associated with retired thermal assets.
The use of former thermal power sites for solar generation could enable EPS to reuse existing land and grid infrastructure while reducing permitting and connection challenges. Modernising hydropower is also intended to provide more flexible renewable capacity to balance growing solar and wind production.
Funding scale relative to Serbia’s generation fleet
The funding is characterised as material but modest compared with the scale of EPS’s coal dependence and ageing generation fleet. The outcome is described as dependent on execution, including how quickly projects move from financing agreements to operating megawatts.
