Renewable Energy Project Kostolac

Donor: Federal Ministry for Economic Cooperation and Development (BMZ)

Partners: Elektroprivreda Srbije (EPS)

Project period: Since 2017

Challenges

  • 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 to.
  • The enormous potential for the use of climate-friendly energy production has hardly been exploited so far.

Approach

The project includes the rehabilitation of the turbines and the modernisation of the electro-mechanical equipment in both hydropower plants.

environment

Results

The project:

  • is considered an important building block for the EU integration of Serbia,
  • contributes to a CO2 emission reduction of up to 122,000 tons per year,
  • enables the exploitation of renewable energy resources and corresponding reduction in fossil fuels,
  • stabilises Serbia’s energy supply through increased diversification in power production,
  • with its signal character has positive effects on Serbian investments in renewable energies,
  • permanently and cost-effectively improves Serbia’s electricity supply.

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