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Serbia to invest EUR 60 million in renewables in district heating

May 19, 2025 by AEA in News

Serbia plans to sign an agreement by the end of the year on introducing renewable sources in district heating plants, according to the Ministry of Mining and Energy.

Minister of Mining and Energy Dubravka Đedović Handanović met with Ambassador of Germany Anke Konrad and Director of Germany’s KfW Development Bank for Southeast Europe and Turkey Klaus Müller.

They discussed cooperation on ongoing projects in the energy sector and a plan for further investments in renewables and energy efficiency.

The minister highlighted the successful cooperation with KfW in the construction of biomass heating plants and the introduction of renewable energy in district heating systems. She recalled that four biomass heating plants have been installed.

In the coming years, new boilers will be installed in several heating plants

She noted that in the second phase of the project, in the coming years, heating plants in Prijepolje, Novi Pazar, Niš, Rača, Vranje and Majdanpek are envisaged to get new boilers.

By the end of the year, Serbia plans to sign an agreement on the introduction of renewables in district heating plants, namely solar technology and heat pumps, Đedović Hanadanović announced.

The investment is estimated at EUR 60 million, of which EUR 20 million would be a donation, thanks to the support of KfW, she added.

Serbia and Germany plan to strengthen cooperation

Đedović Handanović stressed the importance of the climate partnership with Germany and thanked for the support that the other country provides to Serbia in the modernization of the energy sector.

“We are grateful to the German government and the KfW Development Bank for their continuous support in different subsectors in energy, from district heating and energy efficiency to the development of new capacities from renewable energy sources,” she stated.

In line with its ambitions and reform goals in energy, Serbia intends to deepen cooperation with Germany through new projects.

Of note, the four heating plants were installed in Priboj, Mali Zvornik, Novi Pazar and Majdanpek. The agreement for the second phase of the project was signed in May last year.

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May 19, 2025
biomassbiomass heating plantdistrict heatingdistrict heating systemDubravka Đedović HandanovićEnergy EfficiencyHeat pumpsheating plantKfWSolar
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AEA – Albania Energy Association is a industry association dedicated to representing the interests of Albanian and West Balkan for energy producers and consumers. AEA works to advance the development and adoption of sustainable energy solutions in Albania and the Western Balkans, supporting the region’s transition toward a cleaner, more secure, and more competitive energy future. AEA is registered by decision of the Court of Tirana, DECISION NO. 3032, (VAT:L11827451K).

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