Serbia’s state-owned power utility EPS has obtained all necessary permits to start the reconstruction of the Vrla 2 hydropower plant near Surdulica in eastern Serbia. The project is linked to an investment valued at approximately €15.5 million, excluding VAT. The permitting step enables the next phase of works at the facility.
The reconstruction scope includes a full overhaul of the plant’s generating units, auxiliary systems, and hydromechanical equipment. Technical documentation was prepared by Energoprojekt Hidroinženjering, covering civil, electrical, and mechanical designs. The package also includes an environmental impact assessment.
The Ministry of Environmental Protection approved the environmental study related to the project. The ministry also confirmed that no further review of the documentation is required. This approval supports the move toward implementation activities for Vrla 2.
Vrla 2 works within Vlasina cascade modernization
The reconstruction of HPP Vrla 2 forms part of a broader modernization program for the Vlasina hydropower system. The program covers additional facilities including Vrla 1, Vrla 3, and Vrla 4. The stated objective is to improve reliability, increase efficiency, and extend the operational lifetime of the cascade.
The wider rehabilitation program began in late 2025. At that time, EPS signed a contract with Energotehnika Južna Bačka for refurbishment works spanning generating units, auxiliary systems, and hydromechanical equipment across the entire Vlasina cascade. The modernization program totals €109.7 million.
Turbines and generators for the modernization are supplied by Andritz Hydro and Gamesa Electric. The financing structure for the overall program includes support from international financial institutions. Funding arrangements include a €67 million loan from the European Bank for Reconstruction and Development (EBRD).
EBRD loan and WBIF grant backing for Vlasina upgrade
The European Union has provided grant funding through the Western Balkans Investment Framework (WBIF). EU support amounts to €15.4 million. Together with the EBRD loan, this financing underpins the Vlasina cascade modernization program that includes Vrla 2 reconstruction.
