Skip to main content

KfW Projects in Serbia

Renewable Energy Project Kostolac – Windfarm

Donor: Federal Ministry for Economic Cooperation and Development (BMZ)
Partners: Elektroprivreda Srbije (EPS)
Project period: Since 2017


  • Energy consumption per unit of gross domestic product in Serbia is four times higher than in Central Europe and continues to increase.
  • The domestic electricity sector is poorly diversified and dependent on older power plants with high rehabilitation needs.
  • Lack of funds in the Serbian electricity sector and high public debt prevent the financing of much-needed investment, especially in the area of modern environmental technologies and renewable energies.
  • Energy production which is based primarily on lignite pollutes the environment and the climate due to high pollutant emissions.
  • The transformation of the energy sector from dependency on fossil fuels towards climate-friendly production and more efficient use of energy poses high challenges too.
  • The enormous potential for the use of climate-friendly electricity generation based on renewable energies has hardly been exploited so far.


The project includes the installation of 20 turbines with a capacity of 66 MW.


The project:

  • is considered an important building block for the EU integration of Serbia,
  • enables the exploitation of renewable energy resources and corresponding reduction in fossil fuels,
  • stabilises Serbia’s energy supply through increased diversification in power production,
  • has positive effects on Serbian investments in renewable energies with its signal character,
  • improves permanently and cost-effectively Serbia’s electricity supply.

© 2024 German Cooperation in Serbia. All rights reserved.