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EU provides 10 mln euros in grants for construction of biomass heating plants in Serbia

The European Union provided 10 million euros in grants to support the second phase of the Renewable Energy Sources – Development of the Biomass Market in the Republic of Serbia programme. The project will enable heating plants in several local self-governments to transition to using biomass as fuel, providing residents with a secure energy supply and a healthier environment.

The total project value is 31.9 million euros, with the remaining funds being provided through a loan from the KfW German Development Bank and donations from the Federal Republic of Germany.

“In the previous phase of the project, we built four biomass heating plants in Priboj, Mali Zvornik, Novi Pazar, and Majdanpek, with a total investment of 27 million euros,” said Minister of Mining and Energy Dubravka Đedović Handanović. “This investment has provided citizens with reliable and quality heating and cleaner air. With the support of the EU and Germany, we will continue these investments in Niš, Bajina Bašta, Prijepolje, Rača, and Novi Pazar, where we plan to replace fuel oil and coal with biomass. Carbon dioxide emissions will be reduced by 88 per cent and sulfur dioxide emissions will be almost completely eliminated, providing citizens with a healthier environment.”

European Commissioner for Neighbourhood and Enlargement Olivér Várhelyi stated that new investments in district heating would continue to reduce air pollution while promoting local development and economic growth, as wood biomass must be sourced locally to be economically sustainable.

“With the signed grant agreements worth 10 million euros, the EU supports investments in cleaner air and safer energy supply, reiterating the principles of green transition by fostering energy independence and environmental responsibility,” he said, recalling that in the past ten years, the EU had provided more than 600 million euros in grants to Serbia’s energy sector.

Minister of European Integration Tanja Miščević stated that the project was important for energy diversification and transitioning to new energy sources, primarily biomass.

“This project has so far demonstrated sustainability and benefits for citizens; in the first phase, we had four new heating plants and now we are entering the second phase with interest from several more municipalities,” said the Minister. “This significantly improves the environment in which our citizens live, reducing sulfur dioxide and carbon dioxide emissions. All these are elements of the energy transition and our alignment in the field of environmental protection covered by Chapter 27, as well as the obligations we have undertaken from the Green Deal and other regional initiatives.”

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