When Marko Filipović joined Serbia’s electric power industry (EPS) in 2012, as one of the top 110 engineering students in the country, the reconstruction of Vlasinske hydropower plants had already been a topic of discussion for some time. The hydropower system, made up of four cascade plants built just after World War II, had been operating for over 70 years without significant upgrades. It is one of the oldest power systems in Serbia, its technology and infrastructure showing their age.
Today, however, that long-discussed reconstruction is finally on the horizon, with the support of the European Bank for Reconstruction and Development (EBRD) and the European Union (EU). The project, expected to begin in the spring of 2025, will breathe new life into a critical piece of Serbia’s energy infrastructure.
“The project has been a long coming,” Marko explains, noting that EPS had many other priorities over the years. This had postponed the reconstruction of Vlasinske HPPs. “We managed to keep the plant in operation with just regular maintenance and overhauls. But this has become increasingly difficult, more costly and time-consuming. The company therefore realised that it would be more efficient to invest in a complete reconstruction and new equipment.”
The Vlasinske hydropower system was constructed between 1946 and 1949. The system itself is an engineering marvel, with two artificially created lakes, Vlasina and Lisina, connected by nearly 60 kilometres of canals and tunnels, supplying the plants with water. The most impressive aspect is its location: one of the plants is built inside a mountain, and the Vlasina lake sits over 1,200 meters above sea level.
When construction first began, it was nothing short of a monumental effort. Over 15,000 workers, including local youth and farmers, worked tirelessly to complete the project in just three years. The result was a system that could power around 60,000 households. However, after more than seven decades of operation, it’s clear that the time for modernisation has come.
The revitalisation will be financed with a €67 million EBRD loan and €16.1 million investment grant from the European Union, secured through the Western Balkans Investment Framework (WBIF).
“The investment project will focus on replacing essential equipment: we will replace all turbines, generators, primary and secondary hydromechanical equipment. Once installed, this new equipment will then ensure that the four hydropower plants can operate at their full capacity, without the currently frequently needed repairs. This will result in a much more balanced and stable electricity network and allow for a slight increase of generation capacity as well,” explains Marko.
These are only some of the imminent benefits. On a wider scale, the project contributes to Serbia’s efforts to strengthen its renewable energy capacities and shifts its energy generation to cleaner sources. Coal still dominates Serbia’s energy landscape, accounting for around 60 per cent of the country’s electricity production. Hydropower, however, provides nearly 30 per cent of the nation’s energy, and with all of the existing plants built decades ago, EPS is facing a pressing challenge to modernise and expand the life of these plants.
“Revitalising these plants is crucial for the country’s energy future,” says Jovan Ilić, Head of the maintenance and subsequent investments unit in hydro and renewables at EPS. “The Vlasinske system is a priority as the oldest plant of this type, but there are plans for modernising other plants as well. We have intensified work in this area and we are hopeful that in the coming years we will see more similar investments. Reconstruction of Bistrica and Potpec HPP are also coming up as well as Djerdap 2. Also, future projects of reconstruction will include the rest of the EPS hydropower plants Uvac, Kokin Brod, and Pirot.”
But Serbia’s energy landscape is evolving beyond hydropower. While the country is making important strides in modernising its existing hydro plants, it faces limited capacity for expanding further in this area. This is why in recent years the country has begun focusing on increasing its share of intermittent renewable energy sources like wind and solar power, which currently account for less than a mere 3 per cent of the country’s energy mix.
To this end, Serbia has been actively working on scaling up related investments, with support of the EBRD, EU and other donors. Since 2020, the EBRD has been working with the Serbian authorities and industry stakeholders to develop renewable energy auctions through a substantial technical assistance programme funded by the Swiss State Secretariat for Economic Affairs (SECO).
Following the success of the first auction, the second one was announced earlier in November this year. The move signals the country’s commitment to expanding its renewable energy sector and attracting the necessary investment to meet its clean energy ambitions.
While the road ahead is filled with challenges, Serbia’s ambitious plan to modernise its hydro energy sector, and further invest in solar and wind, reflects a clear commitment to a cleaner, more sustainable energy future.
With Marko and his colleagues at EPS, leading the charge, the revitalisation of the Vlasinske hydropower system represents not just an upgrade of old infrastructure, but a pivotal moment in Serbia’s energy transformation.
The European Union is the biggest donor of the energy sector in Serbia, with investments exceeding EUR 1 billion in grant funds since 2000. The EU is funding projects in Serbia that aim at security of supply, diversification of energy sources, market liberalization and improved energy efficiency.
