Short description of the overall project

Serbia foresees to install additional 1,092 MW of renewable energy capacities in order to increase the share of renewables in its energy consumption from the current 21% to 27% by 2020. Altogether more than a fifth of all Serbian households are currently linked to District Heating Systems, which are run by municipal district heating companies. Lack of investment, coupled with almost total reliance on fossil fuels have produced an urgent need for a comprehensive rethinking of the district heat production and distribution system. Waste from forestry and agriculture are suitable sources for producing energy from biomass.

The program, which is co-financed with KfW, replaces fossil fuel fired boilers of the district heating systems of Serbian municipalities with boilers fired by biomass and geothermal energy.  Additional measures will be implemented to strengthen the management capacities of the involved district heating companies.

Short description of activities financed by  the donation

The project supports this transition via also enabling energy  to be supplied  by economically sound operating district heating companies, as well as through the associated stimulation of local value chains.

Through the project it is planned to deliver:

• Renewable energy based heat generation capacities installed and ready for operation
• Newly created complementary infrastructure (reconstruction of boiler rooms, substations, pipe network, etc.) ready for operation
• Supply of sustainably produced biomass fuels
• Participating District Heating Companies qualified and enabled to technically operate the new District Heating systems

Participating District Heating Companies' capacities on administrative and financial performance and service quality for the customers improved.