The programme could reduce dependence on fossil fuels in participating municipalities, although reliable fuel supplies and certification remain critical to its success.
Serbia is preparing a €31.9 million programme to expand the use of biomass in district-heating systems through 2029.
The initiative is intended to replace part of the fossil fuels currently used in municipal heating plants with locally sourced biomass, including wood-based material and agricultural residues.
For participating municipalities, biomass heating could provide several advantages. It may reduce exposure to imported gas and oil prices, create demand for local forestry and agricultural by-products, and lower greenhouse-gas emissions when supplies are managed sustainably.
The investment comes as Serbian companies and public institutions face increasing pressure to improve energy efficiency and reduce the carbon intensity of production.
The European Union’s Carbon Border Adjustment Mechanism is also encouraging exporters in Serbia and other neighbouring economies to pay closer attention to the emissions associated with their energy use and industrial processes.
However, the economics of biomass heating depend on more than the cost of installing new boilers.
Heating plants need reliable, long-term supplies of fuel with consistent quality and moisture levels. Unpredictable deliveries or competition for wood and agricultural residues can increase operating costs and reduce the environmental benefits.
Certification is another important issue. Biomass can be treated as a lower-carbon energy source only when the feedstock is produced, harvested and transported under appropriate sustainability standards.
Serbia will therefore need stronger supply chains, transparent procurement procedures and effective monitoring of forestry resources.
Municipal heating systems must also have sufficient storage space, transport access and maintenance capacity. Smaller towns may need technical and financial assistance to manage the transition.
The planned programme could create opportunities for equipment suppliers, construction companies, agricultural cooperatives, forestry businesses and energy-service providers.
Its long-term success will be measured not only by the number of biomass boilers installed, but by whether the systems can deliver reliable and affordable heating without creating unsustainable pressure on local resources.
