The Western Balkans is a key market for the European Bank for Reconstruction and Development (EBRD), with a strong emphasis on sectors that drive long-term economic growth. Last year alone, the EBRD invested 1.6 billion euros across 116 projects in the region, with Serbia receiving a significant portion — 807 million euros through 37 projects aimed at various economic sectors. A notable portion of these investments, nearly 500 million euros, focused on accelerating Serbia’s green transition, prioritizing renewable energy, decarbonization of district heating systems, and improving ecological infrastructure.
In an interview with Biznis.rs, Jelena Čeperković, Deputy Director of the EBRD for Serbia, discussed the priority sectors for investment in the country and the broader region, highlighting major ongoing projects and their impact on Serbia’s economy.
EBRD’s strategic goals in Serbia
The EBRD’s current five-year strategy for Serbia (2023-2028) is focused on contributing to the country’s economic success and its progress toward EU integration. Key goals include the transition to a green economy, strengthening the private sector’s capacity and access to financing, and financing sustainable infrastructure and regional connectivity projects.
Major ongoing projects in Serbia
Čeperković emphasized several significant green projects being implemented in Serbia. One of the most innovative is the construction of a solar thermal power plant in Novi Sad, valued at 105 million euros. This project, which integrates seasonal heat storage, will provide green energy for district heating, reduce air pollution, and improve energy efficiency.
The EBRD is also backing the decarbonization of Serbia’s district heating systems. With a 30 million-euro program, modern technologies such as solar-thermal systems, heat pumps, and geothermal energy are being introduced across 10 municipalities. Additionally, the EBRD is supporting the construction of the Pupin wind farm, Serbia’s first project developed through renewable energy auctions, with a financing contribution of 45 million euros.
In the transport sector, one of the largest ongoing projects is the reconstruction of a 230 km section of the Belgrade-Nis Railway, which connects Central Europe to Thessaloniki. This project, supported by the EU and European Investment Bank, is valued at 2.2 billion euros.
Assessing progress in green and sustainable projects
Serbia and the broader Western Balkans have made significant strides in implementing green and sustainable projects. However, Čeperković pointed out that there are still many challenges, particularly in overcoming dependence on fossil fuels like lignite. While renewable energy projects are progressing, they still account for a small portion of total energy production. The energy consumption intensity in Serbia remains high, at three times the EU average, indicating substantial room for improvement.
Čeperković emphasized the need for greater initiatives to improve energy efficiency, particularly in the manufacturing and housing sectors. She also called for more active involvement from the private sector in financing green projects, which requires the establishment of a supportive regulatory framework.
EBRD’s long-term cooperation with Serbia
Since Serbia became a member of the EBRD in 2001, the bank has supported 372 projects in the country, totaling nearly 10 billion euros, mostly focused on the private sector. The EBRD’s portfolio in Serbia now exceeds 3 billion euros, reflecting its growing presence in the country.
Future investments in infrastructure
The EBRD plans to continue investing in sustainable infrastructure, especially in the transport sector. The focus will be on supporting the transition from road to rail transport, alongside advisory support for sector reforms. Additionally, the EBRD is involved in financing the development of national solid waste management systems, with a significant 300 million euros secured for seven regional systems in collaboration with the French Development Agency.
Supporting energy efficiency and renewable energy projects
The EBRD is heavily invested in energy efficiency and renewable energy projects in Serbia. Upcoming national programs aim to improve energy efficiency in public and residential buildings, with a focus on multi-story buildings connected to district heating systems. The Public ESCO project, which has secured up to 50 million euros in financing, is expected to result in energy savings of at least 81,000 MWh and reduce CO2 emissions by 20,000 tons per year.
The EBRD is also supporting Serbia’s three-year renewable energy auction plan, which aims to bring 1,300 MW of wind and solar energy capacity online. These auctions are seen as crucial for attracting new investments, reducing emissions, and helping Serbia achieve its sustainability goals.
Through these continued efforts, the EBRD is committed to fostering a greener, more sustainable future for Serbia, driving both economic growth and environmental stewardship.
