Serbia Signs Power Deal With Germany

Serbia's government has approved an agreement between Serbia's state-owned power company, EPS, and Germany's RWE.

Serbia's Deputy Prime Minister, Aleksandar Vucic, and the Energy Minister, Zorana Mihajlovic, will sign the deal on the strategic partnership with RWE in Berlin next week.

According to the deal, RWE’s investment through a joint venture with EPS may exceed 2.2 billion euro in value.

Of this sum, 1.2 billion euro will be used to add a third unit to Serbia’s lignite-fired Termoelektrana Nikola Tesla B power plant.

About 1 billion euro will go on hydropower plants on the River Morava and the River Drina.

In 2009, the two companies signed a preliminary agreement aimed at increasing hydropower capacity in Serbia by as much as 3,000 megawatts.