QAZAQ GREEN. The European Bank for Reconstruction and Development (EBRD) has approved a loan of up to €105 million to Serbia, aimed at decarbonising district heating in Novi Sad. The initiative includes constructing a large-scale solar-thermal plant to enhance the city's energy infrastructure and environmental sustainability, the EBRD said.

The loan, provided through Serbia's Ministry of Finance, will support Novosadska Toplana, Novi Sad's district heating company. Co-financing for the project includes an investment grant of up to €21 million, supplemented by €3 million for project implementation assistance. These funds are sourced from the European Union (EU) and donors under the Western Balkans Investment Framework (WBIF).

The solar-thermal plant will feature 38,600 m² of solar collector fields, a seasonal heat storage system with an 850,000 m³ capacity, a 17 MW heat pump, and a 60 MW electric boiler with advanced power-to-heat technology. This setup will produce over 118,000 MWh of renewable heat energy annually, reducing natural gas consumption by approximately 29%. The project is part of Novi Sad's Green City Action Plan, which outlines targeted investments and policies to address pressing environmental challenges.

Beyond district heating, the initiative incorporates seasonal energy storage and power-to-heat solutions to store surplus renewable electricity, improving grid balance and supporting the development of new wind and solar energy projects.

Key agreements for the project were signed by Serbian Finance Minister Siniša Mali, Mining and Energy Minister Dubravka Đedović Handanović, and Novosadska Toplana Director Nenad Barac, alongside EBRD Regional Head for the Western Balkans Matteo Colangeli.

The EBRD has invested over €9 billion in Serbia to date, with a strong focus on private-sector growth, sustainable infrastructure, and the green energy transition.