Several major energy projects, including the reversible hydropower plants (RHE) Bistrica and Đerdap 3, the construction of six self-balancing solar power plants, and a solar-thermal power plant in Novi Sad, have not been included in the list of 56 priority investments planned for Serbia’s 2025 budget. These projects, along with the oil pipeline to Hungary, are seen as essential investments for the country’s energy future but are notably absent from the proposed budget allocation.
The only “energy-related” project featured in the budget for 2025 is the completion of a storage tank in Smederevo, which is nearing its financial closure. The project has already absorbed over 2.85 billion dinars, with just 16.42 million dinars set aside for 2025 to finalize the remaining funds. Meanwhile, the RHE Bistrica project, estimated at 900 million euros, and the six solar power plants for EPS, valued at 1.9 billion euros, are not part of the 2025 budget, despite their significant financial scope. This raises questions about the government’s energy investment priorities.
A possible explanation for this omission lies in a brief announcement made in the revised Fiscal Strategy for 2025. It reveals that next year, an updated plan for priority energy investments will be presented, detailing the financial needs, sources, and green transition considerations for projects exceeding 20 million euros. The strategy suggests that investments in the energy sector, especially in renewable energy and infrastructure, will be strategically planned, with a focus on securing the necessary financing through state-backed guarantees.
This strategic shift in how energy investments are structured has raised concerns with the Fiscal Council. The Council noted that while Serbia has not yet included the solar power plants and hydropower projects in its budget, the government may rely on issuing guarantees for financing these projects through domestic and international commercial banks. Such guarantees, which are included in the public debt regardless of whether they are activated, could contribute to an increase in Serbia’s overall indebtedness in the coming years.
The Fiscal Council pointed out that the issuance of guarantees for energy projects, including a large investment cycle in the energy sector, is expected to reach about 3.3 billion euros by 2027. Of this amount, 2.8 billion euros would be dedicated to nine EPS projects, including the construction of self-balancing solar power plants with a total capacity of one gigawatt, along with energy storage systems. These investments would be largely financed through state-backed loans, which could indirectly raise Serbia’s public debt.
In response to concerns about public debt, the government has emphasized that it does not anticipate an increase in guaranteed debt in the short term. The rebalancing of this year’s budget did not include the 1.9 billion euros needed for solar projects, but rather relied on the issuance of guarantees for commercial financing. However, with the start of major energy projects, the actual withdrawal of funds could push Serbia’s public debt upward, as the Fiscal Council noted.
Further indications of how the government plans to manage these energy projects can be found in the 2025 budget proposal, which has been reviewed by the Serbian Parliament. While key energy projects like RHE Bistrica, Đerdap 3, and the self-balancing solar plants are mentioned in the proposed budget, they are not listed as part of the official allocations for 2025. Instead, they are expected to be funded through future borrowing or guaranteed loans.
This approach is consistent with the government’s broader energy infrastructure development plan, which has been outlined in the “Starting bases of the energy infrastructure development plan for the period until 2028 with projections until 2030.” This document includes over 200 energy projects, along with progress updates, and serves as a key reference for understanding the direction of Serbia’s energy investments in the years ahead.
The exclusion of several key energy projects from the 2025 budget suggests a strategic delay in their immediate financing, with the government focusing on securing loans and guarantees for future development. While the government remains committed to expanding Serbia’s energy infrastructure, particularly in renewable energy, the timing and financial mechanisms behind these investments remain uncertain, potentially impacting Serbia’s energy transition and debt trajectory.
