The heat production and distribution system has old and outdated equipment. The average boiler age is 28, the average network age is 20 and the average sub-station age is 20. The system has high production and distribution losses.
Several projects for modernization of district heating systems in bigger Serbian cities are completed with soft credit lines of German Kwh bank, an additional support program is underway.
The heating market is organised at the local level and falls under the purview of local governments. The heating is supplied in 55 towns and the total installed power is 6.6 GW (of which 40% in Belgrade).
The fuel input for generating heat in the plants consists of gas
