Novi Pazar gets EUR 5.8 million to switch heating plant from fossil fuel to biomass

Serbia’s Ministry of Mining and Energy has allocated EUR 5.8 million for the Novi Pazar heating plant to switch from fossil fuels – heating oil – to biomass.

Novi Pazar is the third municipality in the country to receive funds under the EUR 26.7 million project, which was launched in mid-2017. Priboj and Mali Zvornik received money in October last year.

In total, six municipalities in Serbia will get funds to switch from fossil fuels – coal and heating oil – to biomass.

The contract envisages the installation of new 8.5 MW biomass boiler and the renovation of the district heating system

The contract for the allocation of funds for the installation of a new 8.5 MW biomass boiler and the renovation of the district heating system have been signed by Novi Pazar Mayor Nihat Biševac, director of heating utility Gradska Toplana Novi Pazar Vladimir Marinković and Serbian Minister of Mining and Energy Aleksandar Antić.

Novi Pazar Mayor Nihat Biševac said the district heating system is now using heating oil and stressed the commodity is a major air pollutant. It led to the shutdown of a heating plant in the center of the city, he added.

New biomass heating plant will lower price of heat

New biomass heating plant will have environmentally friendly production, while the price of heat will be significantly lower, and the capacity for connecting new consumers will be increased, Biševac said.

KfW has secured a EUR 20 million loan and a EUR 2 million grant, while the government of Switzerland added a grant of EUR 4.75 million

The EUR 26.7 million project is being developed by the Government of Serbia with the Government of the Federal Republic of Germany, Germany’s KfW Development Bank and as the Swiss Cooperation Office in Belgrade, which is part of the country’s embassy and run by government agencies.

KfW has secured a EUR 20 million loan and a EUR 2 million grant, while the government of Switzerland added a grant of EUR 4.75 million.