Serbia’s EPS invests EUR 1.25 billion in green energy through 2027: CEO

Serbia’s EPS invests EUR 1.25 billion in green energy through 2027: CEO

Serbia’s EPS to Invest EUR 1.2 Billion in Renewable Energy by 2029

Serbia’s state-owned power utility, Elektroprivreda Srbije (EPS), has outlined plans to invest EUR 1.2 billion in renewable energy sources (RES) by 2029, according to government and company officials. This commitment aligns with broader efforts to modernize Serbia’s energy infrastructure and reduce reliance on coal, which currently dominates the country’s electricity generation mix according to reports.

In 2025, EPS reported a profit of RSD 42.3 billion (EUR 360.3 million), up from RSD 26.1 billion in 2024, driven by increased coal production and efficiency improvements at thermal power plants. The utility also commissioned 76 MW of new renewable energy capacity, marking its first foray into wind and solar power. Additionally, EPS completed investments in flue-gas desulfurization systems at coal-fired plants TENT A and TENT B, aiming to reduce emissions.

A key component of EPS’s strategy is the development of a 1 GW solar power project with battery energy storage systems (BESS), signed in October 2024 with the Hyundai Engineering–UGT Renewables consortium. While preparatory work is underway, construction is expected to begin in 2026 due to the project’s complexity. This initiative is part of Serbia’s broader push to diversify its energy portfolio, which includes plans for the Bistrica pumped storage hydropower plant.

The government’s Just Energy Transition Plan, adopted in late 2025, emphasizes a phased shift away from coal, with EUR 75.4 million allocated for workforce retraining and economic diversification in coal-dependent regions according to the plan. EPS’s investments in RES and storage are seen as critical to achieving these goals while maintaining energy security.

Despite progress, challenges remain, including aging infrastructure and the need for sustained funding. EPS’s 2025 investments totaled RSD 52.7 billion (approximately EUR 449 million), with most funds sourced internally. The utility’s long-term success will depend on balancing coal-dependent operations with the rapid deployment of cleaner alternatives, as outlined in Serbia’s Integrated National Energy and Climate Plan.

With coal plants facing increasing uncompetitiveness due to carbon pricing mechanisms and environmental regulations, Serbia’s energy transition is poised to accelerate, though critics argue more immediate timelines and funding clarity are needed according to analysis.