Serbia’s state-owned power utility EPS has obtained all necessary permits to begin the reconstruction of the Vrla 2 hydropower plant near Surdulica in eastern Serbia, paving the way for an investment valued at approximately €15.5 million (excluding VAT).
The project involves a full overhaul of the plant’s generating units, auxiliary systems, and hydromechanical equipment. The technical documentation was prepared by Energoprojekt Hidroinženjering and includes civil, electrical, and mechanical designs, as well as an environmental impact assessment. The Ministry of Environmental Protection approved the study and confirmed that no further review of the documentation is required.
The reconstruction of HPP Vrla 2 is part of the broader modernization of the Vlasina hydropower system, which also includes the Vrla 1, Vrla 3, and Vrla 4 facilities. The overall goal of the program is to improve reliability, increase efficiency, and extend the operational lifetime of the cascade.
The wider rehabilitation program began in late 2025, when EPS signed a contract with Energotehnika Južna Bačka for refurbishment works covering generating units, auxiliary systems, and hydromechanical equipment across the entire Vlasina cascade. The total value of the modernization program amounts to €109.7 million, with turbines and generators supplied by Andritz Hydro and Gamesa Electric.
The project is backed by international financial institutions. It includes a €67 million loan from the European Bank for Reconstruction and Development (EBRD), while the European Union has provided €15.4 million in grant funding through the Western Balkans Investment Framework (WBIF).
