May 26, 2024
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Serbia: Tender for revitalization of Vlasina hydropower plants to be concluded in summer

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During the upcoming summer months, the tender process for the reconstruction of the Vlasina Hydro Power Plants is expected to conclude, along with the finalization of contracts for the execution of works, partly financed by the European Bank for Reconstruction and Development (EBRD). Minister of Mining and Energy, Dubravka Đedović Handanović, announced that this initiative will not only extend the operational lifespan of the plants but also increase their installed capacity by eight megawatts.

Đedović Handanović engaged in discussions with Mateo Colangeli, Director of the European Bank for Reconstruction and Development (EBRD) for the Western Balkans, exploring joint projects in the energy sector and the EBRD’s support for the region’s energy transition.

Last year, EBRD announced plans to finance the reconstruction and rehabilitation of the Vlasina Hydro Power Plants with EUR 67 million, with an additional EUR 15.4 million from Elektroprivreda Srbije sourced from the European Union’s grant assistance. The total project value is estimated at EUR 82.4 million. The project aims to prolong the plants’ lifespan, increase their installed capacity by 8 MW, and boost production to approximately 310 GWh, catering to the energy needs of 93,000 households.

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Additionally, discussions revolved around another significant project: the introduction of renewable energy sources into district heating systems in ten Serbian cities and municipalities. Valued at EUR 40.5 million, this endeavor aims to mitigate air pollution and transition towards clean energy sources. Part of this initiative involves the installation of solar collectors, heat pumps, and geothermal sources.

EBRD’s involvement extends beyond energy projects. The bank has supported the implementation of auctions for new capacities from solar and wind farms, with plans to organize another round of auctions for additional capacities of up to 400 MW from renewable energy sources. By 2025, the aim is to provide 1,300 MW of new green energy capacities from private investments.

Furthermore, efforts are underway to install smart meters throughout Serbia to reduce network losses. With 200,000 new smart meters already installed through EU donations, the plan is to replace about 80% of old meters with digital meters capable of remote consumption reading by the end of the decade. An additional 200,000 digital meters are set to be installed this year with the assistance of EBRD.

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