Of this amount, €45.8 million will be allocated to modernizing the Bistrica HPP, while €54.2 million will be used for the Potpec HPP overhaul.

Built in 1960, Bistrica HPP has an installed capacity of 102.6 MW and generates an average of 335 GWh per year. The refurbishment will replace outdated equipment, but its capacity will remain unchanged. Meanwhile, the upgrade of the over 50-year-old Potpec HPP will increase its capacity from 54 MW to 61.5 MW. Additionally, a new 13 MW unit will be installed, boosting its annual production from 213 GWh to 236.7 GWh.

The EIB had previously approved a €200 million loan for Serbia's EPS Green Financing project, which includes the Bistrica and Potpec upgrades, the rehabilitation of the 270 MW Djerdap 2 HPP, over 120 MW of new solar plants, and improvements to the 129 MW Vlasinske hydropower system. The total project cost is estimated at €408 million, with €90 million allocated for Djerdap 2.

State-owned Elektroprivreda Srbije (EPS) is also preparing to renovate the Vlasinske hydropower complex, which includes four HPPs, along with Bistrica, Potpec, and Djerdap 2.

Last month, the European Bank for Reconstruction and Development (EBRD) announced that EPS will begin work on the Vlasinske HPP overhaul this spring, financed by a €67 million EBRD loan and a €15.4 million EU investment grant.