The Serbian Government has signed an agreement with the European Bank for Reconstruction and Development (EBRD) to secure a 67 million euro loan guarantee for the refurbishment of the Vlasinske hydropower plants. The loan, accessible over a five-year period, allows the beneficiary to withdraw funds during this time. Repayment will begin four years after the agreement is signed and will be spread over 11 years, with 22 equal semi-annual installments due on 30 April and 30 October each year.
The total cost of the project is estimated at 82.43 million euros, with a 15.4 million euro EU grant from the Western Balkans Investment Framework (WBIF) supplementing the financing. The grant was approved in December 2022, and construction is expected to be completed by the end of 2027.
The project will comprehensively modernize the Vrla 1-4 hydropower plants (HPPs), including equipment upgrades and facility reconstruction. These improvements are expected to boost the plants’ installed capacity by 8 MW, improve operational reliability, and increase annual electricity output. The Vlasinske HPPs, some of the oldest facilities operated by Serbia’s state-owned EPS, currently have an installed capacity of 128 MW. However, due to aging infrastructure and equipment failures, the plants currently operate at only 60-80 MW.
The modernization project will replace all production generators, electro-mechanical and hydro-mechanical systems, and control equipment. These upgrades will ensure reliable and secure operation of the hydropower cascade for the next 30 years, increasing the complex’s capacity to 136 MW.
