Serbia to invest EUR 400 million in reconstruction of hydropower plants

Minister of Mining and Energy Dubravka Dedovic Handanovic announced that a €400 million investment is planned for the upgrade of four hydroelectric plants operated by the state-owned electricity company EPS.

She highlighted challenges in securing investments for gas due to stricter conditions from international financial institutions and mentioned that the second auction round for market premiums for wind and solar electricity would take place once the market conditions are deemed suitable.

During discussions with a delegation from the International Monetary Fund (IMF), led by mission head Donal McGettigan, as part of the third review of Serbia's standby agreement, the focus was on investments, reforms in the energy sector, and strategies to enhance energy security and diversify energy supply sources and routes, according to the ministry.

Dedovic Handanović emphasized the importance of the government's role in the energy sector's decarbonization, adhering to international commitments like the Paris Agreement and the Sofia Declaration on the Green Agenda for the Western Balkans. “To secure supply and boost energy independence, the government must undertake responsible actions aligned with its international obligations. While we aim to create a conducive environment for private sector investments, significant government investment is crucial for achieving our decarbonization commitments,” she stated.