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KfW Projects in Serbia

Rehabilitation of District Heating Systems in Serbia (Phases I – V)

Donor: Federal Ministry for Economic Cooperation and Development (BMZ)
Partner: Ministry of Mining and Energy
Project period: since 2001


  • 20% of the 2.5 million households in Serbia are connected to district heating systems.
  • District heating systems in Serbia are often in a very poor technical condition. There are large water and heat losses and very high emissions.


Investments in sustainable and efficient heat generation and corresponding distribution systems have been executed. Higher energy efficiency leads to savings in energy consumption, which reduces the production costs of the heating systems. The introduction of consumption-based calculation systems is essential because paying for actually consumed heat encourages consumers to save energy. Reduced losses and more efficient production improve cost recovery. Thus, district heating companies can operate more sustainably.

To date, 23 district heating companies with approx. 450,000 households and approx. 30,000 industrial companies are involved in the different phases of the programme, representing about 90% of all users of district heating systems in Serbia.


The project:

  • has increased energy efficiency in the district heating sector and has significantly reduced water losses, fuel consumption and pollutant emissions,
  • has allowed consumers to be reliably supplied at cost-covering prices,
  • has improved the management of district heating plants,
  • has had a nationwide impact on the reduction of greenhouse gas emissions.

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