Contract signed for modernisation of Vlasina hydroelectric power plants
The contract for the reconstruction and modernisation of the Vlasina HPPs was signed on 6 November 2025 by Dušan Živković, General Director of the Electric Power Company of Serbia, and representatives of the contractor Energotehnika Juzna Bačka.
“On the day when the 'Vlasina Hydroelectric Power Plants' celebrate 70 years of operation, we officially begin their modernisation, which will increase the installation capacity by eight megawatts and ensure their more reliable operation in the next three to four decades,” said Živković.
The project foresees the reconstruction and modernisation of production units, auxiliary systems and hydromechanical equipment. The European Union contributes EUR 16 million through the Western Balkans Investment Framework (WBIF), and the European Bank for Reconstruction and Development (EBRD) provides a loan in the amount of EUR 67 million. The remaining funds of EUR 27.26 million will be provided by the EPS.
The signing of the contract was attended by Milan Aleksić, Advisor to the Minister of Mining and Energy for Capital Projects, and Francesco Corbo, Regional Manager for Energy Europe for the Western Balkans and Croatia, European Bank for Reconstruction and Development.
“In the face of climate and technological challenges, our obligation is to modernise existing production capacities. Investments are key to what we need to do in the coming years to ensure a secure supply of electricity, in the face of growing demand and the need to rely more on renewable energy sources. With this investment, we are extending the operating life of the power plant, thus continuing the tradition of the plant that has been reliably contributing to energy security for more than 70 years,” stated Aleksić.
He thanked the European Union for its support for the project and stated that the modernisation of the Potpeć and Bistrica hydroelectric power plants will also be implemented with EU support.
The Vlasina HPPs began operation on November 6, 1955, with the commissioning of the first unit in the Vrla 1 HPP. The plants are expected to produce 309 GWh annually, equivalent to the energy demand of 93,000 households.
Read more about the Vlasina HPP
Vlasina HPP modernisation project
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About WBIF and Global Gateway
The Western Balkans Investment Framework (WBIF) contributes directly to Global Gateway, the EU’s strategy to boost smart, clean and secure connections in digital, energy and transport, while strengthening health, education and research systems worldwide. Global Gateway aims to mobilise up to €300 billion worldwide in investments through a Team Europe approach, bringing together the EU, its Member States and financial institutions to leverage investments for a transformational impact.