A major modernization of Novi Sad’s district heating system will include the construction of a large solar-thermal plant, a seasonal heat-storage facility and an absorption heat pump. According to a prior information notice published by the European Bank for Reconstruction and Development (EBRD), the project represents an important step toward decarbonizing the city’s heating network.
Novi Sad’s current district heating system operates entirely on natural gas. The new investment aims to reduce this dependence by integrating large-scale solar-thermal technology. The project includes a solar-thermal installation with two seasonal heat-storage units totaling around 870,000 cubic meters, a solar-collector field of roughly 39,000 square meters (31 MW), heat pumps with a combined capacity of 17 MW, and two electric boilers providing an additional 60 MW.
The seasonal storage system will accumulate heat during summer months, sourced either from the solar collectors or from electric boilers operating when the electricity system has excess supply and lower prices. During the heating season, the stored energy will be delivered into the network through the heat pump. The system combines several renewable and low-carbon sources: solar-thermal energy, heat extracted from the Danube via the heat pump, and surplus electricity from the grid through the electric boilers. Together, these elements will supply the city’s district heating network.
The project will also connect the electricity system with the heating network, enabling up to 60 MW of balancing capacity.
Financing will be provided through an 85-million-euro loan from the EBRD and a 24.7-million-euro investment grant from the WBIF, bringing the total estimated project value to 109.6 million euros. The published notice serves as preliminary information, with procurement expected to begin on 26 November.
In December 2024, the Serbian Ministry of Mining and Energy, the Ministry of Finance and the EBRD signed the loan agreement for the project, appointing Novosadska Toplana as the implementing entity.
