Serbia's national power company Elektroprivreda Srbije (EPS) plans to invest EUR 80 million in the reconstruction of 17 old and the construction of 18 new small hydro power plants, whose total power will be 80 megawatt, EPS said in a release Wednesday.

The Prvonek power plant on the Banjska reka river near Vranje will be built first. It will cost EUR 1.4 million and be operational in September this year.

Prvonek will have two generators of 100 and 800 kW and will produce 2.5 to three million kilowatt hours a year.

One part of the money for hydro power plant revitalization and construction will come from a EUR 45 million loan from the European Bank for Reconstruction and Development (EBRD).

In the next stage of cooperation with the EBRD, five new small hydro power plants could be built as part of EPS existing system, along with four small power plants at completely new locations.

Increasing electric energy production from small hydro power plants and using more renewable energy sources is in line with the obligations of current and future EU member states to raise the share of renewable energy in total consumption to 20 percent, reduce harmful gas emission by 20 percent and increase energy efficiency by 20 percent, all by 2020, reads the release.