Austria’s Andritz has secured a key role in the modernization of Serbia’s Vlasina hydropower plants, where it will supply ten new turbines as part of a broader refurbishment program aimed at extending the lifespan and improving the performance of one of the country’s oldest hydro assets.
The contract was awarded through Serbian company Energotehnika Južna Bačka, with Andritz’s portion valued in the low double-digit million euro range. The project forms part of the wider revitalization of the Vlasina cascade, a crucial component of Serbia’s electricity system for nearly seven decades. Located on the Vrla River, the complex consists of four hydropower plants that have been in operation since 1955 and currently provide around 130 MW of installed capacity. Following the upgrade, the system is expected to gain an additional 8 MW, while significantly enhancing reliability and operational longevity.
Under the agreement, Andritz will handle the design, production, and supervision of installation and commissioning for ten turbine units, including four Pelton turbines and six Francis turbines, along with the associated equipment. The project is structured to allow electricity generation to continue throughout the reconstruction, minimizing any impact on power supply stability.
The modernization is being implemented under a program led by state-owned EPS and supported by international financial institutions, including the European Bank for Reconstruction and Development (EBRD). The goal is to improve efficiency, safety, and dependability while strengthening Serbia’s renewable energy capacity. The broader Vlasina revitalization project, valued at nearly €110 million, officially entered the implementation phase in February after a launch meeting with EPS and project partners.
In addition to Energotehnika Južna Bačka and Andritz Hydro, the project involves Gamesa Electric and subcontractor Gosa Montaža. Other participants include the Mihajlo Pupin Institute, responsible for upgrading the control system, while supervision is being carried out by the Swiss-Serbian consortium Gruner-NET Invest. The financing structure combines a €67 million EBRD loan, a €15.43 million EU grant through the Western Balkans Investment Framework (WBIF), and €27.26 million in funding from EPS.
EPS CEO Dušan Živković emphasized that the continued modernization of hydropower assets remains strategically important, stressing the need to adhere to the agreed implementation timeline. He noted that while the Vlasina system has a nominal capacity of 129 MW, the complexity of the project lies in upgrading four separate plants and ten generating units that have been operating for more than 70 years.
The Vlasina hydropower plants hold a unique position within EPS’s generation portfolio, operating in a cascade system that produces electricity in successive stages. This configuration makes them an important source of peak-load generation and a vital component of Serbia’s electricity system.
