POTPEC HPP RECONSTRUCTION AND CAPACITY EXPANSION

Promoter – Financial Intermediary

JSC ELEKTROPRIVREDA SRBIJE BELGRADE

Location

• Serbia

Description

The operation is an allocation under a signed Framework Loan for Green Financing by EPS (Elektroprivreda Srbije) for the reconstruction of three existing power units and the construction of a new 13 MW power unit at the Potpec Hydropower Plant (HPP).

Objectives

The aim of rehabilitating the existing units is to extend their operational lifetime, reduce maintenance costs, and increase efficiency. The construction of the new unit aims to compensate for lost production during the rehabilitation of the existing units and to utilise overflowing water. Together, the rehabilitation and construction activities are expected to increase average annual electricity generation from 213 GWh to 236.7 GWh.

Comments

This project is expected to benefit from a grant contribution of up to EUR 15.24 million under the Western Balkans Investment Framework (WBIF), supporting its preparation and implementation.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 76 million

Total cost (Approximate amount)

EUR 91 million

Environmental aspects

The Environmental Impact Assessment (EIA) process and public consultation for the Potpec Hydropower Plant rehabilitation and capacity expansion were successfully completed, and the corresponding environmental consent was issued by the competent authority (Ministry of Environmental Protection) in 2018. As project implementation did not commence within two years (2020), the consent expired. Upon the promoter’s application, the Ministry re-issued the environmental consent in July 2024, confirming that no new or updated EIA is required, that the expired EIA remains valid, and that all defined mitigation measures must be applied. The EIA report will be reviewed during appraisal to ensure compliance with EIB's environmental standards. The project is expected to contribute to climate action and environmental sustainability objectives, particularly in terms of climate change mitigation.

Procurement

The Promoter shall ensure that tender procedure will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Under appraisal