Tensions surge over Serbia’s small hydropower plants

Employees assemble tubes for a hydropower plant in Rakita, Serbia. (AFP)
Updated 29 July 2019
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Tensions surge over Serbia’s small hydropower plants

  • Rakita locals have spent two years fighting against the power plant, holding protests in Belgrade or closer to home in the town of Pirot. They are not alone

RAKITA, SERBIA: Deep in the isolated forests of eastern Serbia a digger gouges a channel through the trees for a pipeline to siphon river water, as the coal-reliant country’s efforts to clean up its energy habit triggers a hydro “gold rush.”
The remote and sparsely populated Bulgarian border region of Stara Planina, which means Old Mountain in Serbian, is famed for rugged peaks and pristine rivers cascading through dense woodlands. But it is at the heart of a backlash against a rash of controversial small-scale hydro projects, which Serbia has encouraged in order to try to meet ambitious renewables targets as part of efforts to join the EU.
“You are not welcome” reads a signboard in the hamlet of Rakita. The message is aimed at hydropower laborers, who are protected by guards as they work to lay the pipes that will divert up to 90 percent of the local river’s water to an energy-generating turbine.
The rural community views the Raktika River, which runs through the village itself, as a lifeline and fears the plant will devastate fish stocks, cause wells to dry up and deprive livestock of water.
Police intervene regularly to avert clashes.
Rakita locals have spent two years fighting against the power plant, holding protests in Belgrade or closer to home in the town of Pirot. They are not alone.
The battle over energy policy is sweeping through much of the Balkans, where campaigners say the proliferation of small-scale hydropower projects threaten the future of some of Europe’s most unspoilt waterways and the vast swathes of flora and fauna they support.
Environmental group RiverWatch has said there is a “gold rush atmosphere” in the region over the hydropower projects, with some 3,000 planned, many in otherwise protected areas.
“It would be like destroying cathedrals to build shopping malls to make more money,” said RiverWatch founder Ulrich Eichelmann recently in Belgrade.

HIGHLIGHTS

Serbia relies on coal for some 70 percent of its electricity, with hydropower accounting for around a quarter.

Serbia relies on coal for some 70 percent of its electricity, with hydropower accounting for around a quarter. Wind and solar power currently provide only a tiny fraction of its energy.
But the country, which is negotiating EU accession, is keen to reduce reliance on fossil fuels and has signed up to an ambitious renewables target of 27 percent by next year.
The European Commission said the country was “not yet on course” to meet the target in a 2018 report.
The focus has turned to water.
So far, about 100 small hydropower plants have been constructed in Serbia, according to the Environment Ministry.
The EPS state power company is offering heavy subsidies — committing to buy electricity generated by small hydropower plants at a price 50 percent higher than the market rate.
That has attracted wealthy individuals, many with no prior experience.
Contacted by AFP, EPS referred to the Energy Ministry which did not reply.
According to Milos Bakovic Adzic, of the Right to Water association, these plants have become an “easy way” to earn money.
The Belgrade lawyer who finances the Rakita plant could not be reached by AFP.


Closing Bell: Saudi main index closes in red at 10,947 

Updated 19 February 2026
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Closing Bell: Saudi main index closes in red at 10,947 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25. 

The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated. 

The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71. 

The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated. 

The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34. 

Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51. 

On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39. 

National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50. 

On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co. 

In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.  

Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.  

Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.  

The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said. 

The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.