EMS signs €113.5 million contract to expand Serbia’s high-voltage grid for Trans-Balkan Corridor

Serbia is moving ahead with a major reinforcement of its electricity transmission backbone, a step investors will watch closely as the country prepares to absorb more generation and deepen cross-border power flows. EMS, the national transmission system operator, has signed a contract for upgrades that expand high-voltage capacity and strengthen regional transfer capability under the Trans-Balkan Corridor program.

What EMS is building: Bajina Bašta transformation and Obrenovac 400 kV works

The agreement—signed with a consortium led by Energotehnika Južna Bačka and Elnos—covers the transformation of the Bajina Bašta substation into a 400/220/35 kV facility. It also includes installation of new 400 kV equipment at the Obrenovac substation.

These measures form part of the third section of the strategic transmission project aimed at increasing regional electricity exchange capacity. The same phase also includes construction of a double-circuit 400 kV transmission line between Bajina Bašta and Obrenovac.

Cost, timeline and financing structure

The total value of this segment is €113.5 million, with completion planned by the end of 2028. Financing is structured through multiple sources: a €64.5 million loan from KfW is paired with a €21 million grant from the Western Balkans Investment Framework (WBIF), while the remaining funding is provided by EMS itself.

Why it matters: capacity gains and integration of new generation

EMS expects the modernization of substations and expansion of high-voltage infrastructure to improve both system reliability and cross-border transfer capacity. The transmission upgrades are also intended to increase available capacity for integrating new generation assets, including the planned pumped-storage hydropower plant Bistrica, which is expected to support system balancing.

Construction of the transmission line is already underway, making it a central element in delivering the project’s implementation schedule.

Trans-Balkan Corridor progress and next steps

The broader Trans-Balkan Corridor—estimated at around €221 million—has been built in stages. Earlier sections include the Pančevo–Romanian border interconnection completed in 2017 and the Kragujevac–Kraljevo segment finalized in 2022.

The next development phase will extend the corridor westward via a new 400 kV line toward Višegrad in Bosnia and Herzegovina and Pljevlja in Montenegro, further strengthening electricity interconnections across South-East Europe.