The European Bank for Reconstruction and Development (EBRD) announced it is providing a €105 million sovereign loan to Serbia. The funds will be used to aid the construction of a solar-thermal power plant in Novi Sad. Novosadska Toplana Novi Sad, the city’s district heating firm, will profit from this funding, which Serbia’s Ministry of Finance is facilitating.
Project Details and Co-Funding
Apart from the EBRD’s investment, the EU and other donors will also contribute €3 million in project implementation support and a €21 million grant through the co-finance facilitated by the Western Balkans Investment Framework (WBIF).
The project includes:
- Solar collector fields spanning 38,600 m².
- Seasonal heat storage with a capacity of 850,000 m³.
- A 17 MW heat pump and a 60 MW electric boiler powered by advanced technology.
These innovative solutions aim to provide reliable, environmentally friendly heating while significantly reducing natural gas consumption.
Also read: EBRD Provides $42 Million Loan for Solar Power Projects in TĂĽrkiye
Green Cities Initiative and Environmental Benefits
This development supports Novi Sad’s Green City Action Plan (GCAP) under the EBRD’s Green Cities Window 3 Framework (GrCF3 W2 Framework). GCAP pinpoints the challenges of the city concerning environmental issues and gives suggestions for targeted investments for the mitigation of environmental problems.
The project will produce more than 118,000 MWh of clean, renewable heat energy annually. This cuts natural gas usage by 29%. This will enhance the city’s energy efficiency and contribute to decarbonising Serbia’s heating sector.
Advanced Energy Storage and Grid Support
Combining power-to-heat solutions with seasonal thermal energy storage is a crucial aspect of the project. This enables the storage of surplus electricity from renewables, improving grid balancing and supporting new renewable energy projects.
Statement from EBRD Director
Matteo Colangeli, EBRD Regional Head of the Western Balkans, stated, “This project is innovative beyond Serbia and the region. The renewable energy solutions it will deliver to provide heat to Novi Sad and to balance the country’s electricity system, as well as the scale of the project, are groundbreaking on an international level.”