The Serbian state-owned utility, EPS, has reported a robust financial performance for 2025, achieving a net profit exceeding €360 million. This marks a continuation of the company’s strong operational results over the past three years, despite facing significant challenges due to adverse hydrological conditions on the Danube River, which have been described as the worst in over thirty years.
Energy and Mining Minister Dubravka Đedovic noted that EPS has successfully maintained stable operations and profitability while executing substantial investments. The utility faced operational hurdles last year but managed to increase coal production and boost electricity generation from thermal power plants, which helped mitigate the impact of reduced water levels on hydroelectric output.
In its efforts to diversify energy sources, EPS expanded its renewable energy portfolio by adding 76 MW of new capacity. This includes the initial integration of wind and solar power into its generation mix. The company has also made strides in environmental upgrades, with ongoing trial operations at flue gas desulfurization facilities at TENT A and TENT B.
Investment execution for EPS reached an impressive 97% of planned levels, totaling €450 million primarily financed through internal resources. Preparatory work is underway for a strategic solar-plus-storage project with a capacity of 1 GW, set to begin construction in 2026. Additionally, plans are advancing for other significant projects such as the Bistrica pump-storage hydropower plant and further solar installations.
In the mining sector, EPS completed all planned investments amounting to €160 million, which included installing major new equipment across four systems within the Kolubara basin. The refurbishment of hydropower facilities is nearing completion, particularly for the second unit at the Bajina Basta pump-storage plant, which is expected to resume full operation in March 2026. This will significantly bolster national energy security.
Management at EPS emphasized that this strong financial outcome was achieved without any revisions to their business plan, reflecting improved planning discipline. The utility continues to advance its transformation process through initiatives such as evaluating executive board KPIs and implementing a Decarbonization Action Plan alongside ongoing organizational reforms. Officials underscored that ensuring sustained energy security will require continued growth in generation capacity, workforce development, corporate culture enhancement, and overall improvements in efficiency and productivity.
