Serbia's power utility EPS and China Machinery Engineering have signed a $715 million deal to build a coal-fired power unit about 62 miles east of Belgrade. The 350-megawatt plant unit will be Serbia's first new coal power development in 23 years.
The new unit is slated to be the third addition to the Kostolac power plant. Once completed, all three units of the plant will provide 20 percent of Serbia's power needs. Zorana Mihajlovic, Serbia's energy minister, said the extra unit gives the country "complete stability" in electricity supply, according to Mining.com.
China Machinery Engineering is also helping EPS with a $1.25 billion upgrade project on the existing units at the Kostolac plant. Outdated technology at the plant has forced it to run under capacity.
Reports from Belgrade said EPS Acting Director Aleksandar Obradović, Termoelektrane i Kopovi Kostolac Director Dragan Jovanović and CMEC Director Zhang Chun signed the contract for construction of the new Kostolac power plant unit.
"This is an important day for Serbia's energy sector, because the country has finally, after nearly 25 years, committed to building a new thermal power station," Mihajlović said at a news conference.