| WBIF | Grant | WB10-SER-ENE-01 | € 600,000 |
| Total | € 600,000 | ||
| Total Grants | € 600,000 | ||
| Total Loans | € 0 | ||
District heating is an important method of providing heating to domestic and commercial properties in Serbia. Many systems suffer from underinvestment, lack of maintenance and neglect leading to under-performing and faulty systems. However, many municipalities have set in motion initiatives to improve their systems and Subotica was an earlier starter and has made significant progress. Subotica is in the far north of the country on the border with Hungary; it is Vojvodina's second largest city with a population of over 100,000 inhabitants.
The district heating system is operated by the public enterprise JKP Suboticka Toplana (District Heating Company Subotica). It supplies around 10,500 private households, commercial customers and public institutions with heat. The system currently operates with two hot water boilers dating from 1988 using natural gas backed up by traditional heavy fuel oil (mazut), a dirty energy source that is not environmentally friendly.
The company has prepared a long-term development strategy that aims at modernizing the technical installations and improving the energy efficiency of the system. Modern pipes have been installed and the company has implemented a consumption-based billing system.
WBIF provided a €600,000 grant to assist with the installation of a new biomass-fired combined heat and power (CHP). This facility will increase capacity for heat production and reduce dependence on imported fuel. The fuel would be straw, a feedstock in ready supply in this agricultural region.
The project will bring economic and environmental benefits. Fuel and generating costs are reduced with improved air quality, reduced CO2 and particulates, and a return of waste material to farmland.
The DHC Subotica has proven ability in pursuing and seeing through new projects. Additionally, WBIF is providing capacity building assistance.