Serbia’s power utility to take no loans in 2025, fund coal projects on its own

For the first time, Elektroprivreda Srbije (EPS) will not take out loans this year, but will finance all investments from its own resources, according to General Manager Dušan Živković. However, it has affected the financial performance of Serbia’s state-owned power utility, with profit in the first half of 2025 coming in lower than in the same period last year.

One of the major investments underway is in coal mining, including the construction of several systems needed to enable the opening of the Radljevo open pit mine in the Kolubara mining basin. However, since financial institutions are unwilling to finance fossil fuels, EPS must rely entirely on its own funds, Živković told national broadcaster RTS.

EPS is financing the coal mine on its own, as financial institutions are unwilling to invest in fossil fuels

To ensure sufficient coal supplies, EPS has contracted imports from Indonesia, which Živković explained as a strategy to diversify sources. He described it as the best way to ensure the security of supply.

He said that the installation of machinery at Radljevo is underway and that EPS expects the mine to start producing overburden and coal early next year.

EPS posted a RSD 27.4 billion (EUR 233.8 million) profit in the first half of 2025, compared to RSD 32.8 billion (EUR 280.3 million) in the same period last year.

Kostolac wind farm set to begin operation

Speaking about other key projects, Živković revealed that the commissioning of the 66 MW Kostolac wind power plant is in the final phase and expressed hope that electricity production would begin within a month. He also recalled that the 10 MW Petka solar power plant, built at the tailings dump in the Kostolac coal complex, was put into trial operation about a month ago.

He also said pumped storage hydropower plant Bistrica and the planned 1 GW of solar facilities could come online in the medium term.

Commenting on the announced 7% electricity price increase in October, Živković stressed the process has been initiated and that he expects it to be completed within one to one-and-a-half months.

Electricity consumption during the summer is lower than last year

On the surge in electricity consumption during the summer months, he said the situation this year has been “calmer” than in 2024, with consumption at around 90 GWh, compared to 114 GWh in 2024. It means total demand can be covered from EPS’s own capacities, according to him.