EBRD to finance solar-thermal power plant in Serbia

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The EBRD is providing a sovereign loan of up to €105 million for a large-scale solar-thermal plant in Novi Sad, northern Serbia.

The funding for Novi Sad’s district heating company, Novosadska Toplana Novi Sad, will support the construction of a plant with 38,600 sqm of solar collector fields, an 850,000 cubic meter seasonal heat storage system, a 17 MW heat pump, and a 60 MW electric boiler.

The project will generate more than 118,000 MWh per year and is expected to reduce the district heating agency’s natural gas consumption by about 29%.

The seasonal thermal energy storage system, combined with power-to-heat solutions, will store surplus electricity from renewables, boosting grid balancing capacity and reducing investment risks for new solar and wind projects, according to the EBRD.

In addition to the EBRD’s investment, the project is expected to receive co-financing, including an investment grant of up to €21 million and €3 million in project implementation assistance, from the EU and other donors through the Western Balkans Investment Framework.

“Efforts to decarbonize our energy sector cannot be complete if we do not include the production of thermal energy, which accounts for a significant share of the energy balance,” said Serbian Energy Minister Dubravka Đedović Handanović. “We took the first steps by building four biomass heating plants, and I believe that the integration of a solar collector and a heat pump that uses the heat of the river Danube into the district heating system of Novi Sad will be a turning point that will show the way that other cities and municipalities in Serbia will follow.”

Serbia has announced the development of several large-scale PV projects this year, including a deal for 1 GW of solar across six sites and a 1 GW solar panel factory. In addition, work is now underway on state-owned utility Elektroprivreda Srbije’s first solar project.

Serbia’s second renewables auction is currently open, with bids due in early February 2025.

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