Serbia's EPS plans 'Đerdap 3' to boost renewables and grid stability

Serbia's state power company, Elektroprivreda Srbije (EPS), is advancing plans for two major pumped-storage hydroelectric power projects, "Đerdap 3" and "Bistrica," aimed at bolstering the country's energy system and supporting renewable energy sources.

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RHE 'Đerdap 3' should contribute to ensuring additional system stability in the coming period, especially through the development of renewable energy sources and security in terms of balancing at the regional level.

EPS General Director Dušan Živković stated that "Đerdap 3" is designed to meet multiple demands, including decarbonization, the expansion of renewable energy, and overall system stability. He highlighted that the "Bistrica" project is further along in its technical development, with expropriation, technical documentation, and infrastructure relocation tenders underway. Živković anticipates preparatory work for "Bistrica" to begin this year, with construction and financing agreements targeted for mid-2025.

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The plan is to start preparatory work on relocating infrastructure during this year, and by mid-next year, to have a contract for the construction and financing of that project.

Živković addressed claims of significant project delays, attributing them to the increasing complexity of developing new energy capacities. He cited environmental protection, land acquisition, local government cooperation, and stringent procedures required by Japanese lenders as key challenges. In parallel, EPS is expanding its solar and wind power generation in Kostolac, with a 1-gigawatt solar plant in the final technical agreement stages and related documentation being prepared.

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There is a lot that needs to be done regarding environmental protection, expropriation, cooperation with local self-governments, and fulfilling the procedures that the Japanese side requires for loans of this type.

Regarding the decision to postpone the connection of new large renewable energy capacities until 2029, Živković explained it is due to the system's limited balancing capabilities. He noted that Serbia currently has approximately 1,400 megawatts of wind and solar capacity, supported by the revitalized "Bajina Bašta" pumped-storage plant. Živković also warned about the financial impact of the EU's Carbon Border Adjustment Mechanism (CBAM), estimating annual costs of around 100 million euros for 25 million tons of CO2 emissions and an additional 150 million euros in lost revenue from restricted electricity exports to the EU. Despite these challenges, he assured that investments are secure and projects are proceeding as planned.

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For the further development of renewable sources, we need additional production capacities that will primarily enable balancing.