Green light for reconstruction of HPP Vrla 2 – Investment worth EUR 15.5 million

Elektroprivreda Srbije (EPS) has received approval from the Ministry of Construction, Transport and Infrastructure for the reconstruction of the generating units and supporting equipment at the Vrla 2 hydroelectric power plant near Surdulica. The value of the planned works is estimated at 1.81 billion dinars, or around EUR 15.5 million excluding VAT.

The reconstruction will be carried out on the facilities of the HPP Vrla 2 and the lock chamber in the cadastral municipality of Bitvrdja, and will include the renovation of the generating units, supporting and auxiliary electromechanical systems of the power plant, as well as hydromechanical equipment.

Along with the request for approval of the works, EPS submitted complete project documentation, including structural designs, electrical and mechanical installations, as well as an environmental impact assessment study. The Ministry of Environmental Protection previously approved the study, while this year it also issued a decision that its additional update is not necessary.

The technical documentation was prepared by Energoprojekt-Hidroinzenjering.

Before the start of the works, EPS is obliged to notify the Ministry of the start of the works and provide expert supervision during the reconstruction. It will also be necessary to obtain the consent of the competent fire protection authority for the construction project.

As stated in the decision, the approval for the works is valid for three years from the date of its finality, within which time the investor must report the start of the works.

No contribution for the development of construction land will be calculated for this investment, in accordance with the Law on Planning and Construction.

The reconstruction of HPP Vrla 2 is part of a wider program for the modernization of the Vlasina HPPs, which also includes the HPPs Vrla 1, Vrla 3 and Vrla 4, with the aim of increasing operational reliability, efficiency of electricity production and extending the service life of the plant.

As a reminder, in November 2025, a contract was signed for the modernization of the Vlasina HPPs. The contract for the reconstruction and modernization of the Vlasina HPPs was signed at the time by Dusan Zivkovic, General Director of EPS, and representatives of the contractor Energotehnika Juzna Backa.

– The total value of the project is EUR 109.7 million and envisages the reconstruction and modernization of production units, auxiliary systems and hydromechanical equipment. The suppliers of the main equipment of the units, namely turbines and generators, will be renowned world companies, Andritz Hydro and Gamesa Electric – said Zivkovic at the time.

He reminded that the Vlasina HPPs were unique power plants in the EPS portfolio that operated in a cascade system and that, by producing energy four times in a row, represented a significant source of “peak” energy.

By the way, Serbia and the European Bank for Reconstruction and Development (EBRD) signed a loan guarantee agreement of EUR 67 million that will finance the revitalization of the Vlasina HPPs. The total value of the project is EUR 82.43 million, and an additional EUR 15.4 million will be used from the European Union (EU) grant, through the Western Balkans Investment Framework (WBIF), approved in December 2022.

I. Z.

Elektroprivreda Srbije ad Beograd

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

Energoprojekt Hidroinženjering a.d. Beograd

MVM Južna Bačka doo Novi Sad

ANDRITZ HYDRO

EBRD Evropska banka za obnovu i razvoj Beograd

Elektroprivreda Srbije

EPS

Ministry of Construction Transport and Infrastructure

Energoprojekt Hidroinženjering

Energotehnika Južna Bačka

Andritz Hydro

Gamesa Electric

European Bank for Reconstruction and Development

EBRD

Dušan Živković

Vlasina HPPs

reconstruction of Vlasina HPPs

revitalization of Vlasina HPPs

HPP Vrla 1

Bitvrđa Surdulica

HPP Vrla 1 Vlasina HPPs

HPP Vrla 2

HPP Vrla 3

HPP Vrla 4

production of electricity

overhaul of Vlasina HPPs

turbines

generators

HPP Vrla 2 Vlasina HPPs