The new biomass heating plant has been commissioned in the city of Novi Pazar in southwestern Serbia.
Minister of Mining and Energy Zorana Mihajlovic said at the opening ceremony that the newly commissioned heating plant would mean more efficient heating, cleaner air and significant saving for the local government. The new plant will completely exclude mazut from use, using wooden biomass as its main energy source, with heat losses in the system being reduced from 20-22 % to 8 %. The value of the investment in the new heating plant is 6.5 million euros.
She stressed that sulfur-dioxide emissions will be reduced to zero, while carbon-dioxide emissions will be decreased by 87 %, adding that the construction of another heating plant in the city is planned.
In June 2017, the Ministry of Mining and Energy signed a loan and donation agreement with the representatives of German KfW Bank and Swiss Government that will enable ten heating plants in Serbia to switch from using fossil fuel to renewable energy sources, namely biomass. The first stage will include heating plants in the municipalities of Mali Zvornik, Nova Varos, Novi Pazar, Prijepolje, Bajina Basta, Valjevo, Priboj, Kladovo and Majdanpek, while the municipality of Becej has already launched two projects – one to convert a part of its heating plant to biomass and the other aimed at using geothermal energy.
Total worth of the project is 27 million euros, which also includes a 2 million euros grant from KfW Bank and 5 million euros grant from Swiss Government. The agreements on financing the transition of district heating companies from fossil fuel to biomass are part of the project Stimulating Renewable Energy – the Development of the Biomass Market in Serbia (DKTI) which was launched in Serbia back in 2012 with a feasibility study for Subotica district heating company. The signing of the agreement marked the start of first stage of that project, with total value of 108 million euros.
Biomass heating plants in Priboj and Mali Zvornik have been commissioned last year.