German company to invest in 3 mini power plants in Serbia

BELGRADE - Representatives of the Vrnjacka Banja municipality and German company EES Group closed an agreement on Monday concerning the construction of three mini hydropower plants in the territory of Vrnjacka Banja, and the total value of the investment will add up to around EUR 60 million.

The agreement was signed by Director of the EES Group branch in Ljubljana Bostjan Zupancic and Vrnjacka Banja Mayor Boban Djurovic.

The agreement on technical business cooperation in exploitation of renewable energy sources and hydropower potentials in the territory of Vrnjacka Banja municipality covers the construction of three mini hydropower plants on West Morava River to the total capacity of 26 megawatts which would employ eight people.

The realisation of the investment will begin immediately after the New Year, Zupancic announced and added that local construction and other companies can count on EUR 45 million worth of funds from the total investment.

Zupancic said that EES Group intends to build 18 more small hydropower plants in several municipalities in Serbia such as Kraljevo, Prijepolje and Cicevac by the end of 2017, and added that the company plans to invest EUR 29 million in the projects.

Djurovic said that the construction of mini hydropower plants would contribute to an increased energy security in the area and would also help Vrnjacka Banja improve its positioning on the investment map of Serbia and Europe.

German Ambassador in Serbia Heinz Wilhelm said that Serbia can increase exploitation of renewable energy sources which now adds up to around 21 percent, and added that the country could make better use of its spa resort potentials.