Djerdap 3: Titolo and Djedovic Handanovic on Danube Forum

Dubravka Djedovic Handanovic, the caretaker Minister of Mining and Energy, said at the Danube Future Forum in Belgrade that the Agreement on Strategic Energy Cooperation with the United States opens room for a bigger presence of American companies. As a project that could deliver results, she singled out the Djerdap 3 pumped storage hydropower plant. US Embassy chargé d’affaires Aleksandar Titolo also spoke about the project.

The forum was organized by the Pupin Initiative, which has been active for three years and brings together people from Serbia, the United States and other countries around joint investments on the Danube. Its president, Vuk Velebit, said the forum grew out of the same idea as the initiative itself: that geography does not have to be destiny, but can be an opportunity.

What did the US chargé d’affaires say?

Titolo tied the Danube to a question that matters for both energy and freight: the water level.

“The importance of the river is often taken for granted, until problems appear, such as drought and low water levels, which can affect transport, energy and other important areas. The topic of the Danube is especially current and important for understanding cooperation between Serbia and the US.”

In his words, Djerdap 3 has the potential to benefit not only Serbia but the entire region, which makes it an important step toward better energy cooperation and security.

Velebit drew a historical line to the name the initiative carries:

“Mihailo Pupin showed with his life that even a small country can matter to a great power when it has something important and useful to offer. He was a bridge between Belgrade and Washington when a bridge was neither obvious nor taken for granted, and the Danube may be the most literal expression of the same idea,” Velebit said.

Why does the minister link Djerdap 3 to drought?

Djedovic Handanovic said Djerdap 3 has the potential to become the largest pumped storage hydropower plant in Europe. She also explained why that kind of capacity is needed:

“It has daily, weekly and seasonal capacity for storing electricity, and that is necessary in unpredictable and turbulent periods, like the last four or five months, when prices rise and there is not enough electricity available, especially in southeastern Europe, because of the low water level of the Danube and drought,” the minister said.

She recalled that the Danube had its lowest water level in history this summer. For that reason, she said, the optimal capacity of the future plant still has to be worked out, which means it has not been set yet.

A statement from the Ministry of Mining and Energy says Djerdap 3 should contribute to the stability of the power system, better use of renewable sources and a more secure electricity supply. The minister added that it would be an investment capable of launching significant economic activity, engaging domestic construction and electrical industries and creating new jobs. Her main position on the space the Danube offers the region was this:

“The Danube is the development axis of the region, and energy is the foundation of new investment and stronger international connections. Our goal is for Serbia to be not only a market for international investment, but also a place where projects of wider regional importance are developed. For that we need reliable partners, modern technology, long-term planning and infrastructure that connects Serbia with the energy systems of central and southeastern Europe.”

What is still unknown about the project?

According to the minister, developing the project requires a thorough analysis of its technical, economic and environmental aspects, as well as cooperation with Romania. The statements relayed from the forum give no investment value, no timeline and no names of the American companies that would take part. The minister spoke about room for a larger American presence, but not about specific contracts.

What else was on the forum agenda?

Participants pointed to the Danube as a transport and logistics corridor linking Europe from Rotterdam to Constanta. To make better use of it, they said, Danube ports should be connected with road and rail infrastructure and with cargo handling capacity.