EBRD Powering Serbia with Strategic Investments in Green Infrastructure
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are ramping up their financial support for Serbia’s sustainable infrastructure.
With an increasing focus on renewable energy and modernisation, these investments are set to transform the country’s energy landscape, transportation network, and digital infrastructure.
Strengthening Serbia’s Renewable Energy Infrastructure
In a major boost to Serbia’s clean energy ambitions, the EBRD has committed a €67 million loan to Serbia’s state-owned electricity provider, Elektroprivreda Srbije (EPS), aimed at revitalising the Vlasinske hydropower cascade. Built in 1946, this historic plant is set to receive critical upgrades, enhancing its efficiency and increasing its total installed capacity from 129 MW to 137 MW.
This project is further backed by a €15.4 million grant from the EU under the Western Balkans Investment Framework (WBIF), reinforcing Serbia’s commitment to reducing dependence on fossil fuels.
Matteo Colangeli, the EBRD’s Regional Head of the Western Balkans, highlighted the importance of this initiative: “We are pleased to be financing the reconstruction of the Vlasinske hydropower cascade, an important project for Serbia’s energy security, and increasing renewables’ share of its generation mix, including by enabling greater integration of intermittent sources like wind and solar.”
Beyond this, the EBRD has injected €45 million of project finance into the Pupin wind farm, Serbia’s first large-scale wind energy project developed under an auction-based framework, further diversifying the country’s renewable energy sources.
Over €800 Million Poured into Serbia in 2024
Serbia continues to be a priority market for the EBRD, with the 2024 investment total reaching €807 million, making it the second consecutive year that funding has exceeded €800 million. Notably, nearly €500 million of this funding is directed towards accelerating Serbia’s green economy transition, focusing on:
- Renewable energy projects
- District heating network modernisation
- Environmental infrastructure upgrades
One of the standout projects is a €105 million loan for a solar thermal plant in Novi Sad, which will integrate green energy into the city’s district heating system. Additionally, a €30 million package is facilitating innovative technologies such as heat pumps, geothermal energy, and urban waste heat recovery in ten municipalities across Serbia.
Strengthening Transport and Digital Infrastructure
Recognising the role of transport in economic development, the EBRD has allocated €50 million for Serbian Railways Infrastructure to rehabilitate critical rail networks. Another €20 million loan has been extended to the Serbia and Montenegro Air Traffic Services Agency to enhance air traffic management systems. These investments are essential in modernising Serbia’s transportation infrastructure, aligning it with EU standards, and improving regional connectivity.
Beyond transport, digital transformation is another focal area. In 2024, the EBRD supported initiatives to expand broadband connectivity to rural areas, ensuring equitable digital access. This move is expected to stimulate economic activity in remote regions, facilitating entrepreneurship and improving access to digital services.
Driving Private Sector Growth and Financial Accessibility
Beyond public infrastructure, the EBRD continues to empower Serbia’s private sector. In 2024, the bank provided €340 million in financing to support local enterprises, facilitating access to capital, particularly for SMEs, women-led businesses, and youth entrepreneurs. These funds are channelled through local banks and leasing companies, ensuring businesses can invest in:
- Green technologies
- Digital transformation
- Expansion into international markets
This focus on financial accessibility is pivotal in strengthening Serbia’s economic resilience and promoting sustainable business practices.
Serbia’s Rising Profile as a Green Investment Hub
With an active investment portfolio surpassing €3 billion in Serbia, the EBRD has solidified its position as a key driver of the country’s economic and environmental transformation. As Matteo Colangeli noted: “Serbia continues to be one of EBRD’s largest markets with our active portfolio of investments in the country exceeding the €3 billion level for the first time. We are proud of having delivered another year of high investment volume in 2024, with a record number of projects and share of financing dedicated to the green economy transition.”
This commitment extends beyond Serbia, with the Western Balkans region receiving €1.6 billion in EBRD funding in 2024, plus an additional €500 million from other investors. A remarkable 62% of these funds were channelled into green energy and sustainability initiatives, positioning Serbia as a leader in the region’s renewable energy revolution.
A Brighter, More Sustainable Future
Serbia’s infrastructure modernisation is gaining momentum, thanks to strategic financial backing from the EBRD and EU. From renewable energy advancements to rail and broadband expansion, these investments are paving the way for a more competitive, resilient, and environmentally sustainable economy.
With continued funding and technical support, Serbia is well on its way to becoming a regional leader in green innovation and sustainable development.
