Serbia aims to sign a financing agreement with the Japan International Cooperation Agency (JICA) by mid-2027 for the planned Bistrica pumped-storage hydropower plant, as technical and environmental preparation advances. The deal would bring Serbia closer to launching construction tenders for one of its largest planned electricity-system investments. Bistrica is designed to add storage and balancing capacity as variable renewable generation expands in the Serbian power system.
Environmental and technical preparation
Several requirements remain before financing can be finalized. A key condition is an Environmental and Social Impact Assessment that meets JICA standards, with submission planned for December 2026. Technical work is also continuing at the proposed dam site. Laboratory investigations are assessing soil characteristics, and the results are expected to determine whether the engineering design needs to change.
The project has undergone six technical site inspections to identify potential development problems and reduce technical risk before construction. State-owned utility EPS has also begun land-expropriation procedures. Serbian Mining and Energy Minister Dubravka Đedović discussed the outstanding work with Kotaro Tanaka, JICA’s Director General for the Middle East and Europe. Their discussions covered the possible financing amount, technical documentation, land acquisition and administrative requirements.
Role in Serbia’s power system
Bistrica’s importance has grown as Serbia adds wind and solar capacity to a system still dominated by conventional generation. Unlike conventional hydropower, pumped storage can absorb electricity during periods of lower prices or surplus supply, then return it to the grid when demand and prices rise. Securing JICA financing would mark progress beyond another generation project, bringing Serbia closer to building a large flexibility asset. The project could influence balancing costs, renewable integration and Serbia’s position in the regional electricity market.
