Over the next decade, Serbia is expected to see nearly 2 billion euros invested in its hydropower sector, with around 760 million euros planned for the first three years alone. Of that total, approximately 470 million euros will be directed toward new hydropower developments, according to Radovan Stanić, Assistant General Director for Operations at power utility EPS.
Stanić noted that hydropower remains Serbia’s most dependable renewable energy source, providing stable electricity output and playing an essential role in ensuring security of supply—both key factors in gradually reducing the country’s reliance on coal. He also stressed the importance of hydropower in balancing the power system, as hydro plants can rapidly adjust production to compensate for fluctuations in wind and solar generation.
EPS has already completed major overhauls at the Bajina Bašta, Djerdap 1 and Zvornik hydropower plants, while a significant upgrade of the Bajina Bašta pump-storage facility is underway. Revitalization work has started on the Vlasina cascade, preparations are in progress for the modernization of HPP Bistrica, and the company is advancing plans for a fourth generating unit at the Potpeć plant.
Milan Aleksić, Advisor for Capital Projects at the Ministry of Mining and Energy, emphasized that hydropower—especially pump-storage facilities—will be a cornerstone of Serbia’s energy transition. He explained that both the refurbishment of existing assets and the development of new hydropower plants are necessary to maintain long-term security of supply. Aleksić described the planned Bistrica pump-storage project, expected to have a capacity of about 660 MW, as a strategic investment crucial for balancing the increasing share of solar and wind generation in the coming years.
He also pointed to looming challenges such as the introduction of the EU Carbon Border Adjustment Mechanism (CBAM) in 2026 and the associated carbon cost obligations. To remain competitive, Serbia will need to significantly expand its renewable energy portfolio. The Integrated National Energy and Climate Plan projects that by the end of the decade, every second megawatt-hour should come from renewable sources, with the share of renewables expected to triple by 2040.
