The European Bank for Reconstruction and Development (EBRD) is evaluating a €90 million loan to Serbia for the construction of a large solar-thermal power plant in Novi Sad, according to reports from Biznis.rs.
The project is estimated to cost €104.7 million and is expected to receive additional funding through a grant from the EU as part of the Western Balkans Investment Framework (WBIF).
This solar-thermal power plant will be integrated into the district heating system and is part of the Sustainable Energy and Climate Action Plan (SECAP) adopted by the Novi Sad Assembly on June 28. It is also linked to the EBRD’s “Novi Sad – Green City Action Plan” (GCAP), which addresses the city’s urgent environmental challenges through targeted investments.
The EBRD loan will fund the construction of a solar-thermal plant featuring 38,600 square meters of solar collector fields, seasonal heat storage, a heat pump, and an electric boiler.
While the EBRD’s project plans are in place, the SECAP document suggests an even larger solar collector field of approximately 200,000 square meters, seasonal energy storage of about 1,000,000 cubic meters, and an 80 MW heat pump capacity. The planned facility is to be located adjacent to existing hot water infrastructure, allowing for the distribution of around 130,000 MWh of clean renewable energy to the district heating system and potentially reducing carbon dioxide emissions by approximately 29,500 tons annually.
The complete implementation of the solar-thermal power plant is projected to be finished by 2027, with an estimated project value of €91.9 million. If approved, the €90 million loan will be directed to the Novi Sad Heating Plant, which will oversee the project in coordination with the Ministry of Mining and Energy and the city of Novi Sad.
The EBRD aims to enhance the efficient and environmentally friendly supply of heating energy to households and businesses in Novi Sad, supporting Serbia’s decarbonization efforts in its district heating sector. The project is expected to increase the share of renewable energy sources in total heat production by incorporating solar-thermal and heat pump technologies into the currently gas-dependent system.
The EBRD is set to make a decision regarding the loan approval on December 4.
