Small hydropower plants to be built in western Serbia

The construction of small hydropower plants in Ivanjica and Arilje, western Serbia, will start soon, Energy Minister Zorana Mihajloviĉ said on Monday.

Source: Tanjug

This will bring jobs and strengthen the budgets of the local governments based on water use charges, she was quoted as saying.

Also on Monday, Mihajloviĉ signed memorandums on the construction of 49 small hydropower plants on the territory of Ivanjica with 28 investors, more than half of whom are foreigners, but also with nine more investors on the construction of 11 small hydropower plants in the municipality of Arilje.

Investments into small hydropower plants in Ivanjica will bring RSD 4 million a year, 60 percent of which will go to the state budget. Arilje's budget should get around RSD 800,000 a year in water payments, the minister said.

The works on the construction of these plants will bring 100 new jobs to Ivanjica and 25 to Arilje.

Small and medium-sized companies and the mechanical engineering and the construction sector will be engaged in the construction of the plants, which can contribute to the development of these municipalities, Mihajloviĉ said while signing memorandums in Ivanjica.

The Energy Ministry, investors and local governments will come together to engage in this project.

"The Energy Ministry will provide full support and assistance in the scope of cooperation between local governments and investors. We suggest that local governments establish public-private partnerships with investors in order to boost efficiency," Mihajloviĉ said.

She stated that this is the first step towards the implementation of the national plan on the use of renewable energy, which says that Serbia should have another 1,000 megawatts by 2020.

The minister also announced that the Energy Ministry will invite a new tender for the construction of small hydropower plants at the remaining 105 locations, which did not get their investors in the first tender.

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