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 preparations advance. The agreement would bring the country closer to launching construction tenders for one of its largest planned electricity-system investments. Bistrica is intended to add storage and balancing capacity as more variable renewable generation enters Serbia’s power system.
Project preparation and financing
Several requirements must be met before financing can be finalised. The project’s Environmental and Social Impact Assessment must comply with JICA standards, and its submission is planned for December 2026. Technical work is also continuing at the proposed dam site.
Laboratory investigations are examining soil characteristics, and their findings are expected to determine whether the engineering design needs to change. Six technical inspections of the site have already been carried out to identify potential development problems and reduce technical risks 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 talks covered the possible financing amount, technical documentation, land acquisition and administrative requirements.
Role in Serbia’s electricity 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 increase. Securing JICA financing would mark more than progress on another generation project for Serbia: it would bring the country closer to building a large flexibility asset that could affect balancing costs, renewable integration and its position in the regional electricity market.
