Serbia has progressed environmental preparations for new 400 kV electricity infrastructure at Bistrica, supporting plans to connect the proposed 660 MW Bistrica pumped-storage hydropower plant with regional transmission networks and cross-border electricity markets.
The Ministry of Environmental Protection has defined the scope of an environmental impact assessment covering phased construction of the Bistrica 2 switching facility, a future double-circuit 400 kV transmission line towards Montenegro and modifications to existing 220 kV infrastructure.
The decision represents a permitting preparation step rather than final environmental approval or authorisation to begin construction. The infrastructure is linked to Serbia’s wider participation in the Trans-Balkan Electricity Corridor, which aims to strengthen electricity transmission between Serbia, Montenegro and Bosnia and Herzegovina.
Grid Capacity Central to Bistrica’s Investment Case
The planned 660 MW Bistrica plant would pump water to an upper reservoir when electricity is cheaper or surplus generation is available, then generate power when demand and prices rise. Its projected annual generation is approximately 1,600 GWh. Because pumping requires electricity, the facility’s economics will depend on purchasing and selling prices, round-trip efficiency, transmission charges, operating costs and financing obligations.
Adequate grid capacity will be essential for the plant to access lower-priced electricity and deliver power during peak-demand periods. The planned Bistrica 2 infrastructure is intended to strengthen its connection to the high-voltage network while supporting electricity exchanges between Serbia and neighbouring markets.
Trans-Balkan Corridor Links Regional Markets
The fourth section of the Trans-Balkan Electricity Corridor includes a double-circuit 400 kV transmission line connecting Bajina Bašta with Višegrad in Bosnia and Herzegovina and Pljevlja in Montenegro.
Serbian energy planning documents estimate the investment associated with this section at approximately €53 million. Financing is structured around German development-bank lending, Western Balkan investment grants and domestic contributions. The wider corridor is expected to improve connections with Montenegro’s transmission network and its submarine electricity interconnector with Italy. Greater transmission capacity could facilitate regional electricity exports and improve access to imports during domestic supply shortages.
However, additional infrastructure does not automatically eliminate congestion or guarantee profitable cross-border trading. Available capacity, allocation mechanisms, market prices and compliance with the EU’s Carbon Border Adjustment Mechanism (CBAM) will continue to influence electricity trade.
Bistrica Financing and Project Preparation
The planned pumped-storage facility has an indicative investment value approaching €1 billion, according to Serbia’s published energy planning documents. The final construction budget and financing structure remain subject to project development. The Serbian government has been negotiating financing arrangements with the Japan International Cooperation Agency (JICA), with a loan agreement targeted around EXPO 2027. Design documentation, environmental assessments and preparatory construction activities are also being advanced.
Delivering the project will require coordination between financing approval, civil engineering, electro-mechanical equipment procurement and grid construction. The transmission corridor also involves separate infrastructure owners, national jurisdictions and permitting procedures, creating dependencies between the projects’ implementation schedules.
Renewable Energy Increases Demand for Storage
Pumped storage is becoming increasingly relevant as solar and wind generation expands across Serbia, Romania, Bulgaria, Hungary, Greece and neighbouring markets. Higher renewable output can reduce daytime electricity prices, while evening demand and lower renewable generation can widen price differences. Storage operators may capture some of this spread by buying electricity during cheaper periods and selling when prices rise. Additional income may come from balancing and ancillary services, depending on market rules and procurement arrangements.
For Serbia, Bistrica could provide greater power-system flexibility, reduce reliance on thermal generators for balancing and support the integration of additional renewable capacity. Its financial viability will depend on electricity-price spreads, storage efficiency, dispatch patterns, transmission constraints and financing costs. The planned grid improvements and pumped-storage investment must therefore progress together to enable the facility to operate effectively within regional electricity markets.
