MVM majority control of Južna Bačka shifts Serbia’s EPC balance toward generation and distribution as EPS awards build a €160m pipeline

MVM’s consolidation of Energotehnika Južna Bačka is changing how investors should read Serbia’s power engineering market—not simply because ownership has shifted, but because the company’s contract mix is tilting toward EPS generation assets and distribution digitalisation at a time when the country is preparing for a multi-year grid investment cycle.

The transaction, completed after an equity move from 33.4% to 60% ownership, took place between July and September 2025. With MVM now holding majority control via MVM, Južna Bačka has effectively been pulled into a more integrated regional industrial model, with implications for project scale, delivery structure and strategic positioning across Serbia’s electricity value chain.

A capital wave meets an execution platform

Serbia is entering what the article describes as a multi-cycle capital deployment phase estimated at €5–7 billion by 2030, spanning generation, distribution and transmission. The drivers include decarbonisation goals, grid stabilisation needs and gradual alignment with EU market coupling mechanisms. In that context, the majority takeover positions Južna Bačka less as an episodic domestic tender participant and more as a localized execution platform within a broader investment wave.

Before MVM moved to majority control, Južna Bačka already had established involvement in substation construction, grid reinforcement and electro-mechanical works. The earlier minority stake provided visibility into Serbian infrastructure without full operational integration; once the deal closed in September 2025, higher-value EPC roles followed rapidly.

The Vlasina modernization anchors the new contract profile

The clearest signal came through the €109.7 million modernization of the Vlasina hydropower cascade, signed with EPS in November 2025. The project is described as both the largest identifiable award after acquisition and evidence of structural repositioning within EPS’s southern portfolio.

The upgrade targets approximately +8 MW of incremental capacity, alongside an extension of operational life estimated at 20–30 years. Delivery is structured as a hybrid arrangement: Južna Bačka acts as primary contractor while ANDRITZ was selected in March 2026 to supply 10 turbine units, tying the work into a wider European OEM supply chain.

This evolution—from domestically anchored contracting toward integrated EPC–OEM structures

—mirrors MVM’s operating approach across Central Europe, where asset ownership, engineering and procurement are increasingly coordinated under one industrial framework. For Serbia, it elevates Južna Bačka into higher-tier project delivery capacity, including management of mid-scale generation CAPEX envelopes exceeding €100 million.

Distribution backlog grows through metering rollout contracts

Beyond hydro rehabilitation, Južna Bačka also deepened its exposure to Serbia’s distribution transformation through advanced metering infrastructure supported in part by international lenders. Contracts awarded late in 2025 included €25.79 million for the Niš region and €11.05 million for the Čačak/Kraljevo area, bringing confirmed distribution-related backlog to about €36.8 million.

The article frames these projects as more than physical installation: they embed the company into the system’s digital layer where investments tend to be longer-term and iterative, closely linked to regulatory alignment. It also notes that Serbia’s efforts to reduce technical and commercial losses, integrate distributed solar generation and prepare for evolving pricing frameworks depend on this kind of infrastructure—extending beyond construction into data-enabled grid management.

Cities add continuity; transmission remains temporarily light on confirmed awards

An additional strand involves urban infrastructure work tied most notably to grid activities associated with the Belgrade EXPO development, valued at more than RSD 1.4 billion (approximately €10–12 million). While smaller than hydro modernization on headline value, such projects provide continuity of execution during politically significant developments.

Taken together, identifiable backlog accumulated from early steps in July 2025 through early 2026 converges around a range of €160–170 million