A major trend in today’s oil supply landscape is that national producers are increasingly prioritizing flexibility rather than simply increasing volumes. Growing production alone does not guarantee greater leverage in the marketplace unless the resulting barrels meet refinery requirements and are supported by sufficient logistics.
As hydropower fleets that were developed early begin to get old
Many of the hydropower plants across Europe are not new projects — they are legacy or inherited infrastructure. Many have operated continuously for decades, which means some of the original civil engineering could still be relatively strong; however, many of the turbine and auxiliary system components of those plants are beginning to fail due to increasing operational demand.
Although upgrading a well-operated hydroelectric fleet typically is less straightforward than simply replacing parts, upgrades that can be phased-in overtime and verified before returning them online are always going to be preferable. In short, modernizing a hydroelectric fleet involves not only determining what needs to be upgraded, but also determining how that upgrade should take place without compromising the functionality of the system.
Contractual arrangements then become very relevant in terms of how work is conducted — performance must improve, risks must decrease, and there must not be unnecessary interruptions to electricity production.
A multi-plant retrofit with limited opportunities for disruptions
A long-running hydropower cascade in southern Serbia demonstrates this tension in a clear manner. The Vlasinske cascade, located on the Vrla River, consists of four hydropower plants that began operations in 1955 and currently generate a total installed capacity of approximately 130 MW.
Modernization in this type of environment does not involve solely enhancing the equipment. Modernization in this type of environment also involves ensuring continuity of operation. The scheduled work will allow for the continuous operation of electric power generation during the course of the modernization efforts in order to maintain a reliable source of electrical power.
Even minor increases in generating capacity can be considered valuable if accompanied by improvements in reliability and extending life. The modernization is intended to ensure continued reliable operation and increase installed capacity by 8 MW — thereby contributing to increased renewable sources of electrical energy generation in southern Serbia.
ANDRITZ selection to perform, and why it is important
International technology company ANDRITZ has been contracted by Energotehnika Južna Bačka to provide 10 new turbines for the modernization of the Vlasinske hydropower plants. The order is valued in the lower double-digit millions of euros and is part of ANDRITZ’s order intake for Q1/2026.
Under the contract, ANDRITZ will design, manufacture, oversee installation, and commission four Pelton and six Francis units along with related equipment. The modernization plan will include provision for continuing power generation during the course of the work — an important constraint in any multi-plant cascade where extended periods of outage would compromise system reliability.
The project received funding through international loans, including a loan from the European Bank for Reconstruction and Development. The project is aligned with Elektroprivreda Srbije’s state-owned utility’s renovation program for the cascade.
Projects such as this illustrate a shift toward long‑term asset‑management planning for hydropower rather than discrete project execution. Emphasizing reliability, staged implementation, and continuity of generation allows owners to protect asset value while meeting evolving grid requirements. In practice, this reflects managing mature plants as dynamic assets requiring ongoing technical support.
Sustaining performance in long-operating hydro assets
Modernization projects similar to the Vlasinske cascade demonstrate that renewable energy strategy increasingly emphasizes sustaining performance — rather than expanding capacity. This occurs as upgrades are implemented to retain producing capability while enhancing equipment performance — strengthening reliability and reducing risk — an aspect that will grow more important as Europe utilizes long‑operating renewable assets.
