Serbia and Romania to Sign Memorandum of Understanding on the Construction of the “Djerdap-3” Pumped-Storage Hydropower Plant

Serbia and Romania are preparing to sign a Memorandum of Understanding (MoU) on the joint development of the “Djerdap-3” pumped-storage hydropower plant (PSHPP) on the Danube River. This was announced by Serbia’s Minister of Energy, Dubravka Đedović Handanović, who noted that the agreement is currently in its final drafting phase.

The project is seen as a key strategic initiative that would enhance energy system stability, facilitate the integration of renewable energy sources into the regional power grid, and offer a long-term solution for seasonal electricity storage benefiting both countries.

“The construction of this pumped-storage hydropower plant can improve energy system stability, support renewable energy integration into the regional grid, and provide a solution for seasonal electricity storage in the interest of both sides,” Minister Đedović Handanović stated in an Instagram post following a call with Romanian Minister of Energy, Bogdan Ivan.

Serbia has already completed hydrological studies and a preliminary feasibility assessment for the Djerdap-3 project. According to Serbia’s Integrated National Energy and Climate Plan (INECP) for the period up to 2030, with a perspective toward 2050, the plant is expected to have a total installed capacity of 1,800 MW. The project is projected to be completed by 2038, with an estimated cost of €1.4 billion (approximately $1.6 billion).

 The two countries already have successful experience in cross-border energy cooperation, as Serbia’s state-owned power utility EPS and Romania’s Hidroelectrica jointly operate the Djerdap-1 and Djerdap-2 hydropower plants on the Danube, located on their shared border.

Serbia currently operates one pumped-storage hydropower plant — the 614 MW Bajina Bašta facility in the western part of the country — and plans to construct another, the 646 MW Bistrica plant. Romania, on the other hand, currently has 91.5 MW of pumped hydro capacity and plans to develop the 1,000 MW Tarnita-Lăpuștești PSHPP.

This joint infrastructure project represents a significant step forward for energy cooperation in the Danube region and contributes to strengthening energy security and sustainable development for both nations.