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The Government of the Republic of Serbia

In the service of citizens

Modernisation of heating plants for more efficient heating, better air quality

Kragujevac, 20 September 2022

Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlovic signed memorandums of understanding today in Kragujevac, within the framework of the project "Renewable energy sources of districts in Serbia", with the European Bank for Reconstruction and Development, the Swiss State Secretariat for Economic Affairs and 11 cities and municipalities participating in the development of the project.

The memorandums were signed in the presence of representatives of the EU Delegation in Serbia, and the project, whose total value is €40.5 million, includes Becej, Bogatic, Vrbas, Vrsac, Kragujevac, Kraljevo, Krusevac, Nis, Novi Pazar, Pancevo and Paracin.

On that occasion, Mihajlovic pointed out that, thanks to the greater use of RES in the production of thermal energy, the citizens of the aforementioned local governments will receive better heating and a healthier environment, and the local governments will have a more stable district heating system.

The Deputy Prime Minister specified that the EBRD finances the project with a €30 million loan, and the Swiss government and the EU donate €7.5 million and €3million respectively, noting that all projects will be completed in next four years.

These projects will enable other cities to use renewable sources for the production of thermal energy, as Priboj and Mali Zvornik have been doing since last year, and as Novi Pazar will do starting from this heating season, Mihajlovic noted.