EBRD Provides €30 Million Loan to Finance Renewable Heat Investments in Serbia
District Heating Firms in 10 Serbian Cities Set for Modernization
Investment Promises Significant Environmental Benefits and Energy Security
The European Bank for Reconstruction and Development (EBRD) is extending a €30 million loan to Serbia aimed at funding investments in renewable heat generation across several district heating companies in the country. The project also includes energy-efficiency measures such as the modernization of heat substations and district heating networks.
This initiative will benefit from donor-funded support totaling €12 million, sourced by the EBRD from entities like the Swiss State Secretariat for Economic Affairs, the European Union's Regional Energy Efficiency Programme, and the government of Austria through the Renewable District Energy in the Western Balkans Programme. Implementation will be led by Serbia's Ministry of Mining and Energy in collaboration with participating municipalities and district heating companies.
The loan agreement was signed in the presence of Siniša Mali, Minister of Finance, and Dubravka Đedović Handanović, Minister of Mining and Energy, alongside EBRD President Odile Renaud-Basso. Also attending were H.E. Urs Schmid, Swiss Ambassador to Serbia, H.E. Christian Ebner, Austrian Ambassador to Serbia, and Elvira Angulo Rodrigues, Head of Operations at the EU mission in Serbia.
Minister Siniša Mali highlighted the contract's importance for Serbia, emphasizing its contribution to environmental health through improved air quality, increased use of renewable energy sources in thermal energy production, and enhanced energy efficiency. Minister Dubravka Đedović Handanović noted that citizens in 10 cities including Bečej, Bogatić, Kragujevac, Kraljevo, Kruševac, Novi Pazar, Niš, Pančevo, Paraćin, and Vršac will benefit from a cleaner and more modern district heating system.
EBRD President Odile Renaud-Basso expressed satisfaction in financing this groundbreaking project aimed at transforming Serbia's district heating systems. Given the current reliance on fossil fuels and energy inefficiencies in Serbia's heating systems, this project promises significant environmental benefits and improved energy security. It is expected to double thermal energy production from renewable sources in Serbia, reduce carbon dioxide emissions by approximately 14,600 tonnes annually, and achieve notable energy and water savings.
In conclusion, this EBRD-funded initiative represents a crucial step towards sustainable development in Serbia, aiming to reduce dependence on imported fossil fuels and enhance overall energy efficiency and environmental sustainability in the region.
