RWE Innogy has 51 % interest in the joint venture company – Moravske hidroelektrane while EPS holds the remaining 49 %.

The JV company will build five run-of-river power plants with an installed capacity of 30 MW each on the Morava river.

The power plants will generate around 650GW hours of electricity per year.

RWE Innogy chief executive officer Fritz Vahrenholt said the potential of both run-of-river and a pumped-storage power plant is considerable in Serbia.

"We aim to tap and use this potential by forming strategic partnerships, such as the partnership with EPS", said Vahrenholt.

Work on the first hydropower plant will commence in 2014, following completion of feasibility studies and planning process.

Construction of all five power plants will be complete in seven years.