Eleven local authorities signed memorandums of understanding for decarbonization projects for district heating and cooling and energy efficiency improvements in the sector. Switzerland is donating EUR 7 million, the EU approved a EUR 3 million grant, while the EBRD is preparing a EUR 30 million loan for the purpose.

Citizens of 11 cities and municipalities in Serbia will get better quality heating and healthier environment with the introduction of renewable energy sources. The local authorities signed memorandums of understanding with the Ministry of Mining and Energy, the European Bank for Reconstruction and Development and Switzerland’s State Secretariat for Economic Affairs (SECO) for endeavors worth an overall EUR 40.5 million in the first phase.

“Both our countries are facing challenges when it comes to lowering greenhouse gas emissions and we are trying to increase the share of renewable energy sources that we use to produce energy. I am pleased that together we succeeded – Serbia, the EU and my government – and this is a great potential for the decarbonization of the economy,” Swiss Ambassador to Serbia Urs Schmid said at the signing ceremony in Kragujevac, as quoted by the Ministry of Mining and Energy. His country earmarked an EUR 8.5 million grant for the ReDE Serbia project.

Project is even more significant due to crisis

“A year ago, when we started the project, we thought it was important and innovative, while today the project’s significance is even greater, in the light of the crisis. This will be an example of how we can accelerate the energy transition, improve energy security and improve air quality,” said the EBRD’s Director for the Western Balkans and Head of Serbia Matteo Colangeli. The international financial institution is supposed to provide a EUR 30 million loan.

The funds should be utilized to enable the implementation of innovative renewable district energy technologies such as heat pumps, geothermal, solar thermal, biogas, biomass and waste heat from wastewater treatment plants and other industrial sources, according to Colangeli. They will be used for the first time in South East Europe, he added.

Read the full news here.