Serbia Partners With EBRD And EU For Landmark Renewable Energy Project


(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 28. The European Bank for Reconstruction and Development (EBRD) is extending a 105 million euro sovereign loan to Serbia to finance the construction of a cutting-edge solar-thermal power plant in Novi Sad, Trend reports.

The project, part of Serbia's broader efforts to decarbonize its energy sector, will be co-financed by a 21 million euro investment grant and 3 million euro in technical assistance from the EU and other donors through the Western Balkans investment Framework (WBIF).

The plant, operated by Novosadska Toplana Novi Sad, will feature advanced technologies, including 38,600 m2 of solar collectors, a 17 MW heat pump, and a 60 MW electric boiler. This facility is expected to produce over 118,000 MWh of renewable heat annually, reducing natural gas consumption by 29% and cutting CO2 emissions by 17,350 tons per year.

“This project is groundbreaking, not only for Serbia but internationally,” said Matteo Colangeli, EBRD Regional Head for the Western Balkans.“It supports cleaner, more affordable energy and enhances Serbia's electricity grid stability while improving air quality.”

The initiative aligns with Novi Sad's Green City Action Plan, a framework for tackling environmental challenges and promoting sustainable investments. Serbia's First Deputy Prime Minister and Finance Minister, Siniša Mali, emphasized the nation's commitment to clean energy:“Responsible investment in renewable energy is key to our future. This project is a milestone in Serbia's journey toward decarbonization and energy efficiency.”

Mining and Energy Minister Dubravka Đedović Handanović highlighted the innovative aspects of the plant:“By integrating solar collectors, a heat pump utilizing the Danube's energy, and an electric boiler, this project sets a benchmark for other cities in Serbia to follow.”

The EBRD's support for Serbia underscores its commitment to fostering sustainable economic development. With this loan, the Bank's investments in Serbia in 2024 have exceeded 800 million euros, reinforcing its role as a pivotal partner in the country's green transition.

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Trend News Agency

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