RWE and Serbian utility JP Elektroprivreda Srbije along with members of the Serbian government signed the agreement to move forward with expansions in the Serbian electricity market, the German company said.
The first phase of the joint effort involves the construction of a hydroelectric plant that could generate as much as 3,000 megawatts of electricity. Potential sites for the plant include locations on the Danube, Morava and Drina Rivers.
RWE said it was working with the Republic of Srpska in Bosnia-Herzegovina on the possibility of establishing the facility on the Drina River.
The German utility lauded the vast hydroelectric potential in the region and noted the facility would secure an emissions-free energy supply to area customers.
The agreement was signed during an official visit to Berlin by Serbian President Boris Tadic.