Serbia plans to stop using coal, fuel oil in district heating by 2040

By 2040, Serbia intends to replace fuel oil and coal in district heating plants with solar, wood biomass, heat pumps, municipal waste and geothermal energy.

Maja Vukadinović, acting Assistant Minister of Mining and Energy for Energy Efficiency and Climate Change, has said that the goal for the district heating sector is to phase out fuel oil and coal by 2040.

She explained that the idea is to replace fossil fuels with solar energy, wood biomass, heat pumps, municipal waste and geothermal energy.

“The list of programs and projects until 2028 is defined in the draft Program for the Implementation of the Energy Development Strategy of the Republic of Serbia until 2040 with projections to 2050, for the period from 2026 to 2028,” Vukadinović told Balkan Green Energy News.

The share of renewables should increase from 2.4% to 5.5%

According to the draft, implementation of decarbonization projects in district heating systems by 2028 should lift the share of renewable energy sources in heat production from 2.4% to 5.5%.

The fuel mix in 2023 was 75% natural gas, 8% petroleum products, 2% coal, 2% wood biomass, and 13% purchased heat. The structure of purchased heat production is 46.8% natural gas, 48.8% coal, 3.3% wood biomass, and 1.1% fuel oil.

serbia decarbonization district heating mix 2040

Natural gas will remain the dominant source of thermal energy, as it is today, although its share is expected to decrease from 73% to 50% by 2040, according to Vukadinović.

The decarbonization of the district heating system would reduce air pollution in cities, especially where coal or fuel oil is currently used, the ministry added.

A strategic plan for the district heating decarbonization policy is being prepared

“It’s very important that the fuels conversion is carried out in parallel with energy renovation of buildings and a reduction of the energy consumption for heating. It would significantly improve living conditions,” Vukadinović underlined.

Decarbonization would also have to lead to the improvement of the overall operation of the heating plants, as well as a reduction in network losses, the modernization of substations, and the introduction of daily and seasonal thermal energy storage, in her opinion. The operation of the district heating systems should depend less on the price volatility of imported fuels, Vukadinović stressed.

Serbia is preparing a strategic plan for the district heating decarbonization policy. The document is under development in cooperation with the European Bank for Reconstruction and Development (EBRD) and the business association of Serbian heating plants, Toplane Srbije.

The document, she explained, will outline steps to improve the district heating system, including the rollout of thermal energy storage, heat pumps, and heat production from waste, as well as the development of the country’s first district cooling systems.

Post Views:24

June 19, 2025

by AEA in News

Serbia secures EUR 50 million loan for air quality projects

The Government of Serbia has secured a EUR 50 million loan to fund a series of air quality projects across several cities. The funds will primarily go towards replacing coal- and fuel oil-fired boiler rooms in six cities.

For years, air pollution has been one of the biggest environmental issues in Serbia.

Minister of Environmental Protection Sara Pavkov and First Deputy Prime Minister and Minister of Finance Siniša Mali have signed two agreements with the European Bank for Reconstruction and Development (EBRD), which will soon lead to significant investments in air protection projects in multiple Serbian cities, the Ministry of Environmental Protection said.

Mali signed a EUR 50 million loan agreement, while Pavkov inked the project agreement. On behalf of the bank, both documents were signed by Matteo Colangeli, EBRD Regional Head of the Western Balkans.

EUR 50 million will be invested in cities with the highest levels of harmful emissions

Pavkov noted that based on these agreements, EUR 50 million would be invested in cities mapped as those with the largest excesses of harmful emissions. This is good news for residents of Belgrade, Niš, Valjevo, Zaječar, Novi Pazar, and Smederevo, where the projects will be implemented, she added.

In these cities, old, outdated boilers running on fuel oil, coal, and other fuels with an adverse impact on air quality will be replaced. Modern and sustainable heat energy sources, such as heat pumps, biomass, and industrial waste heat, will be installed, she stressed.

The projects will also include, where possible, connection to district heating systems or natural gas networks.

An air protection law is in the process of adoption

“These projects are the culmination of years of work. We have entered a phase where we can expect the launch of construction and intensification of the efforts for cleaner air, which remains one of our top priorities,” Pavkov stressed.

She recalled that an EBRD loan had helped replace 50-year-old coal boilers with state-of-the-art gas boilers at the Kragujevac district heating plant. The second phase, the remediation of the ash landfill, has also begun, she added.

From 2021 to 2024, the ministry has implemented projects to replace 169 boiler rooms in public institutions across 76 local authorities, according to Pavkov.

Under a public call, funds have been allocated for projects in 18 municipalities in 2025, with another call currently underway. An air protection bill is now before the National Assembly, intended to provide a new overarching framework and fresh momentum in the fight for better air quality, Pavkov noted.

Post Views:90