105 Million Euros for the Solar-Thermal Power Plant in Novi Sad

Minister of Mining and Energy, Dubravka Djedović Handanović, stated that efforts to decarbonize the energy sector are incomplete unless they also include the production of thermal energy, which has a significant share in the energy balance.

"We have taken the first steps by building four biomass heating plants, and I believe that integrating the solar heating plant and the heat pump that utilizes the heat from the Danube River into the district heating system of Novi Sad will be a turning point, paving the way for other cities and municipalities in Serbia. Thermal energy produced in a sustainable way will cover more than 30% of Novi Sad's heating needs, replacing the consumption of more than 16 million cubic meters of natural gas. The project is unique in Serbia because it also includes an electric boiler for balancing excess electricity, which will provide additional capacity for balancing energy produced by solar and wind power plants," she stated.

First Deputy Prime Minister and Minister of Finance, Siniša Mali, emphasized that Serbia has boldly undertaken reforms in the energy sector.

"Our main goals in this process are the decarbonization of this sector, increasing energy efficiency, increasing the share of renewable energy sources, and improving air quality. Projects like “Green Cities” help us significantly in achieving this, as the solar-thermal power plant in Novi Sad will reduce CO₂ emissions by 17,350 tons annually and enable the direct connection of the EPS’s power system with the district heating system of Novi Sad. Responsible investment in clean energy is the future worldwide, and Serbia’s investments in comprehensive reforms, which have been ongoing for more than a decade, are significant. The results are substantial, but there is still much work ahead. I am confident that, with such reliable partners, we will successfully complete everything," he said.

Director of the European Bank for Reconstruction and Development (EBRD) for the Western Balkans, Matteo Colangeli, emphasized the significance of this innovative project for Serbia and the region.

"Renewable energy solutions that will supply Novi Sad with heat and balance the country's power system, as well as the scale of the project, are revolutionary on an international level. We are proud to support Novi Sad in this transformative investment, which will contribute to better air quality and cleaner, more affordable energy. With this loan, the EBRD concludes 2024 with over 800 million euros in new investments in Serbia, demonstrating our strong commitment to the sustainable economic development of this country," he said.

Director of the Novi Sad Heating Plant, Nenad Barac, emphasized the importance of this project for the citizens of Novi Sad.

"I am very pleased that the Novi Sad Heating Plant, with the support of the Ministry of Mining and Energy and the European Bank for Reconstruction and Development, has secured up to 24 million euros in grants for the implementation of the solar-thermal power plant project in Novi Sad. This investment includes the design and construction of a hybrid facility that integrates a solar field, electric boilers, a heat pump, and seasonal heat storage, thereby improving the district heating system in Novi Sad. The project positions Novi Sad as a green city that utilizes the most advanced technologies for sustainable and efficient heat supply," he said.