The "Djerdap 3" Hydropower Project: A Historic Opportunity Worth More Than €2.63 Billion

A Historic Opportunity with a Completion Target of 2038

"Market access is a fundamental factor. The administration is focused on ensuring fair, reciprocal trade and removing barriers for American companies", the document states.

It further emphasizes that Washington intends to pursue infrastructure investments under the Strategic Energy Cooperation Agreement between Serbia and the United States, signed on 18 September 2024, according to the Institute for Politics and Economics of Southeastern Europe (IPESE).

According to the institute, the initiative presents a historic opportunity for Serbia to strengthen its economy and keep pace with global trends through a partnership with one of the world's most technologically advanced nations. At the same time, it offers Washington an opportunity to demonstrate how American capital can generate tangible development and prosperity in a region where other global powers have long maintained a dominant presence.

This moment could represent a turning point in which the interests of both countries align to accelerate economic and energy development.

Expressions of Interest Invited

The launch of a Call for Expressions of Interest (EOI) for the Djerdap 3 Reversible Hydroelectric Power Plant (RHPP) suggests that the strategy is already being implemented.

The document, issued on behalf of Serbia's Ministry of Mining and Energy, was published on the official website of the U.S. Embassy in Belgrade on 3 June 2026.

"The Ministry of Mining and Energy of the Republic of Serbia is issuing a public call for expressions of interest to participate in the development and construction of the Djerdap 3 Reversible Hydroelectric Power Plant project. This megaproject is a key pillar of the region’s future energy security and energy transition. Qualified American companies with proven experience in hydropower, engineering, and advanced energy-storage technologies are invited to submit letters of intent and company profiles", the invitation states.

Official estimates place the value of the investment at €2.63 billion, while the deadline for financial and engineering firms to submit expressions of interest is 25 June.

The project's planned generating capacity of 2,400 megawatts could be supplemented by an additional 400 megawatts from wind and solar energy sources, transforming Djerdap 3 into a hybrid energy hub and potentially Europe's largest energy-storage facility. Completion is targeted for 2038.

Direct Institutional and Political Support from Washington

The call follows the agreement signed in Washington by Serbian Minister of Mining and Energy Dubravka Đedović Handanović and the U.S. Under Secretary of State Jose Fernandez is establishing a framework for the participation of American companies in Serbian energy projects.

The agreement covers energy security, strategic minerals, renewable energy sources, and infrastructure modernization.

As one of Europe's largest planned energy-storage projects, Djerdap 3 represents the practical implementation of an agreement reached during the administration of former U.S. President Joseph Biden, while also aligning with the broader economic objectives of the current administration.

The fact that the invitation was published on the website of the U.S. Embassy, rather than solely through Serbian channels, underscores that this is more than a standard commercial undertaking; it is a project enjoying direct institutional and political support from Washington.

The proposal envisages the participation of American partners in the preparation of Front-End Engineering Design (FEED) studies, project documentation, and the subsequent construction of the facility under an Engineering, Procurement, and Construction (EPC) "turnkey" model.

The project includes an upper reservoir near the Kučaj Mountains, dams, tunnels linking the Danube to artificial lakes, reversible turbines, and the associated transmission infrastructure.

Energy Diversification and Reduced Dependence on Beijing and Moscow

For years, the energy sector has been a major arena of geopolitical competition in Serbia.

Over the past two decades, large-scale infrastructure projects have largely been associated with Russia (energy and gas infrastructure), China (railways, roads, and mining), and the European Union (green-transition initiatives and regulatory reforms), according to IPESE.

Djerdap 3 is a megaproject through which the United States seeks to establish a stronger presence in Serbia through its capital and technology.

From Washington's perspective, the project could help reduce regional dependence on Russian energy resources while contributing to greater stability, particularly given Serbia's shared interest in the Danube region with neighboring Romania.

IPESE argues that the project would represent a major strategic entry point for the United States while also sending a message to China, whose companies, including CCCC, CRBC, PowerChina, and Zijin, have played a dominant role in Serbian infrastructure development.

By selecting an American partner, Belgrade demonstrates its intention to maintain a balance among major powers while simultaneously sending a signal to Brussels. Although the project aligns closely with the European decarbonization agenda, it would be implemented primarily through American investment and expertise.

Given that the bilateral agreement also includes cooperation on strategic minerals, Washington could potentially assume a leading role in projects that Serbia had previously discussed with the European Union.

American Investment as a Strategic Tool

U.S. Secretary of State Marco Rubio has also stated the role of the State Department in supporting American business interests abroad.

“When our government supports infrastructure projects in the region, it sends a signal to American investors that the area is stable, secure, and ready for long-term economic growth. We are not asking our partners in the Balkans to choose sides blindly; rather, we are offering them a superior alternative,” Rubio said.

In an earlier statement, he added: "Projects financed and built by American companies do not come with the debt traps associated with Beijing, nor with the energy leverage historically exercised by Moscow. American investments in clean energy in the Balkans strengthen the sovereignty of those countries."

Increasingly Pragmatic Relations Between Serbia and the United States

Domestically, the Serbian government presents the project as evidence of its ability to deliver the country's largest energy undertaking in decades while enhancing long-term energy security at a time when Europe faces increasing concerns over electricity supply.

Djerdap 3 is not the first example of Serbian and American cooperation.

The American construction company Bechtel is expected to complete the Morava Corridor (112 km) this year. In addition, a memorandum has recently been signed for the construction of the Kraljevo–Novi Pazar expressway (83 km), a project valued at more than €1 billion.

The route also includes an additional 11-kilometer section from Raška to the administrative crossing with Kosovo, while Belgrade has expressed readiness to finance a further extension toward Mitrovica. Since Bechtel also operates in Kosovo, the completed route could become the fastest road connection between northern Kosovo and Belgrade.

Serbian President Aleksandar Vučić recently announced major economic initiatives involving both the United States and China. Shortly thereafter, U.S. President Donald Trump shared Vučić's interview with Breitbart News on his Truth Social platform.

In the interview, Vučić stated that Trump is the most popular American political leader in Serbia and would receive an exceptionally warm welcome if he visited the country.

Given the growing involvement of American companies in Serbia's energy and transportation sectors, the prospect of a future presidential visit no longer appears unrealistic.

If the Djerdap 3 megaproject is successfully realized, Serbian and American relations could reach their highest level in recent history, positioning Serbia as a key energy and strategic partner of the United States in the Balkans, IPESE concludes.