Serbia has launched the second phase of a project to develop its biomass market, with financial support from German development bank KfW, the European Union and the German government, See News reported.
According to the Serbian Energy Ministry, the second phase of the project is valued at €31.9 million and will run until 2029. It includes the construction and modernisation of district heating systems in Prijepolje, Novi Pazar, Knjaževac and several other cities.
In Prijepolje, a new heating plant will be built with a 6 MW biomass boiler, around 3,255 metres of distribution network, 43 upgraded substations and equipment for wood chip production.
In Novi Pazar, the existing heating plant will be expanded with a new 5 MW biomass boiler and a solar power plant.
The ministry said the project is expected to generate around 55,000 MWh of renewable energy annually while reducing greenhouse gas emissions by about 20,000 tonnes of carbon dioxide equivalent each year.
Funding for the second phase includes a €20 million loan from KfW, a €9.9 million grant from the European Union and a €2 million grant from the German government.
The project follows the successful completion of its first phase, which was implemented between 2018 and 2024 with a total investment of €27 million.
During the first phase, biomass heating plants were commissioned in Mali Zvornik, Priboj, Novi Pazar and Majdanpek.
The initial phase was financed through a €20 million loan and a €2 million grant from KfW, along with a €5 million grant provided by Switzerland.
