Serbian state utility EPS has secured approximately €107.5 million to modernise hydropower plants and develop more than 120 MW of solar capacity on land linked to former coal-fired facilities. The financing combines a €100 million European Investment Bank loan agreed in 2024 with about €7.46 million in grants under the Western Balkans Investment Framework.
Solar development on former thermal power sites
EPS is considering ash-disposal areas and coal-storage sites associated with the Morava and Kolubara A thermal power plants for solar construction after their closure. The projects are at an early development stage.
The use of former thermal power locations would enable EPS to reuse existing land and grid infrastructure, while also targeting fewer permitting and connection challenges. The programme is designed to pair hydropower modernisation with additional solar generation capacity.
Hydropower generating-unit upgrades and rehabilitation
A substantial part of the investment will fund upgrades to generating units at the Bistrica, Potpec and Djerdap II hydropower plants. Potpec is also due to receive an additional 13 MW unit.
The package further includes rehabilitation of the 129 MW Vlasinske hydropower cascade, extending the scope beyond upgrades at individual facilities. Modernising hydropower is intended to provide more flexible renewable capacity alongside growing solar and wind production.
The funding level is described as material but modest relative to EPS’s coal dependence and ageing generation fleet. Its impact will depend on execution, including how quickly projects progress from financing agreements to operating megawatts.
