After years of investing all the available money into the maintenance of production capacities, environmental protection has been given priority in the business policy of Electric Power Industry of Serbia. From 2003 to date, a number of projects, which are in a direct function of reducing pollution from the EPS thermal power plants, has been implemented: approximately €28 million has been invested into the replacement of six electric static precipitators; the project for the replacement of the existing ash handling and disposal system has  been undertaken to reduce air, ground and underground water pollution; a database of terrain stability in the hydro power plants zones has been compiled, as well as the mechanism for waste management. So far, total investment amounts to €112 million.
According to a set of the Environmental Protection Acts that came into force at the end of December 2004, PE EPS has the obligation to align the operations of its facilities with their provisions by 2015. That means that under the national regulations that are being harmonized with EU regulations, protection measures in line with the best available techniques (BAT) shall be applied to new facilities and facilities under rehabilitation works:

- new thermal power plants and thermal power plants to be rehabilitated must be equipped with plants for desulphurization, denitrification and high efficiency precipitators, waste water purification unit, and also new favorable solution of the ash handling and disposal must be introduced, etc;
- in the mining sector, re-cultivation must be carried out by applying new methods, including selective working (mining) and disposal of humus;
- in the hydro power sector, protective measures envisaged by projects must be applied to protect reservoirs and the coastal areas, remedial and rehabilitation works of the existing conditions;
- operational compliance with the requirements of the UN Framework Convention on Climate Change and the Kyoto Protocol, possibilities of using the Clean Development Mechanism (CDM) foreseen as the support to the sustainable development of developing countries, as well as preparation of other flexible mechanisms;
- optimal use of waste (ash, gypsum, clay, sand, rubber, alternative fuels, etc.) produced as secondary raw material in the activities of EPS.