Serbia’s state power utility Elektroprivreda Srbije (EPS) has launched a consultancy tender to prepare procurement documentation for the planned 660-MW Bistrica pumped-storage hydropower plant, bringing the major energy project closer to an international construction tender.
The consultancy is estimated at RSD 104.3 million excluding VAT, with bids due by October 6. The selected consultant will have 10 months to review and harmonise the tender package with Japan International Cooperation Agency (JICA) procurement requirements and the FIDIC Yellow Book 2017, including obtaining JICA acceptance. The tender does not represent the launch of the main construction contract, and no works contract has been awarded. A JICA financing agreement has also not yet been signed.
Storage capacity to support renewable growth
Bistrica is being developed as a major flexibility asset for Serbia’s electricity system as the country expands wind and solar generation and seeks to reduce dependence on coal. Pumped-storage plants use electricity during periods of lower demand or abundant generation to pump water into an upper reservoir, then release it through turbines when demand and prices increase. Serbia’s Energy Ministry has said Bistrica could enable the integration of up to 1,500 MW of additional renewable generation. The planned facility would complement the existing Bajina Bašta pumped-storage hydropower plant, expanding Serbia’s ability to balance intermittent renewable output and shift electricity between different market periods.
Project could strengthen EPS market position
At 660 MW, Bistrica would become one of Serbia’s largest flexible generation assets and could support both domestic balancing and cross-border electricity trading. Its potential commercial role is linked to greater volatility in Southeast European electricity markets, where periods of very low or negative prices can occur during high renewable production, while evening peaks and supply disruptions can produce much higher prices. Pumped storage can absorb electricity when prices are low and generate when electricity becomes more valuable.
JICA financing remains outstanding
Serbian and Japanese officials previously indicated that technical and financing issues had been aligned, with a JICA-backed loan agreement targeted around Expo 2027 in Belgrade. The financing agreement, however, has not yet been signed.
The current consultancy therefore represents preparation for the future financing and procurement process rather than confirmation that construction is ready to begin. Before construction can proceed, Serbia will need to complete the tender documentation, obtain JICA approval, finalise financing, launch and evaluate the international tender, sign the main contract and complete remaining permits and preparatory work.
FIDIC framework sets contract structure
The use of FIDIC Yellow Book 2017 indicates a design-and-build structure under which the contractor would carry substantial responsibility for engineering, construction and equipment delivery. For Bistrica, this could involve underground works, waterways, turbines, generators, electrical equipment, control systems and grid integration. The allocation of geological, tunnelling, water-management and equipment-integration risks will be important in determining project costs and bidder participation.
Renewable expansion increases need for flexibility
Bistrica is being developed as Serbia’s renewable pipeline grows. Wind, solar and battery projects are seeking grid connections, while transmission operator EMS has tightened connection procedures through studies and financial guarantees. The growing volume of intermittent generation increases the importance of flexible infrastructure capable of balancing the system.
Serbia is also pursuing battery storage, transmission investments and regional electricity-market integration. Batteries can provide rapid response and short-duration storage, while pumped storage can deliver larger energy volumes over longer periods.
Project economics depend on financing and construction
The investment case will depend heavily on financing terms, construction costs and project risks. Pumped-storage facilities require significant upfront capital and can face cost increases from geological and tunnelling challenges. The eventual JICA financing terms will therefore be an important factor in the project’s economics.
The RSD 104.3 million consultancy is small compared with the eventual investment, but its work will establish the procurement framework for a major internationally financed hydropower project. With the latest tender, EPS is moving Bistrica from project-development work toward the documentation and approval stages required before the main international construction competition can begin.
