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KfW Projects in Serbia

Promotion of Renewable Energy – Development of the Biomass Market in Serbia

Donor: Federal Ministry for Economic Cooperation and Development (BMZ)
Partners: Ministry of Mining and Energy (MoME), Swiss Cooperation Office in Serbia (SECO)
Project period: Since 2017


  • Energy consumption per unit of gross domestic product in Serbia is four times higher than in Central Europe and continues to increase.
  • The transformation of the energy sector from dependency on fossil fuels towards climate-friendly production and more efficient use of energy poses major financial challenges to Serbia.
  • Lack of funds in the Serbian energy sector prevents the financing of urgently needed investments, especially in the area of modern environmental technologies.
  • Energy production which is based primarily on lignite is harmful to the environment as well as the climate due to high pollutant emissions.
  • The enormous potential for the use of climate-friendly energy generation has hardly been exploited so far.


Development of a locally sustainable bioenergy market by improving capacities and framework conditions for sustainable bioenergy use. The project involves the conversion from fossil to biomass boilers fired with wood.


The project:

  • is considered an important building block for the EU integration of Serbia,
  • contributes to CO2and SO2 emission savings,
  • enables the development and use of renewable energy resources, and thus the reduction of fossil fuels,
  • improves access to climate-friendly, efficient and reliable heat supply,
  • stabilizes Serbia’s energy supply through increased diversification in power generation,
  • reduces polluting energy imports,
  • contributes to the development of local value chains
  • has positive effects on Serbian investments in renewable energies with its signal character,
  • makes a contribution to global climate protection.

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