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Serbia’s energy transition: Local governments and regional cooperation as key drivers for sustainable development

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Climate change and pollution pose significant challenges for Serbia, requiring strategic and decisive action. The transition to renewable energy sources is not just an alternative but an imperative for reducing harmful gas emissions, ensuring energy security and improving citizens’ quality of life. In this transformation process, NALED plays an active role in improving the legislative and strategic framework for Serbia’s sustainable development, says Jasmina Radovanović, Lead Advisor for Property and Investments at NALED, in a co-authored article.

Opportunity in regional cooperation

A long-term vision for sustainable development calls for regional cooperation and joint initiatives. One of the brightest examples of this approach is the cross-border project “Energy Efficient Communities,” worth over two million euros. With financial support from the European Union and in collaboration with NALED, the project brings together the city of Subotica and three Croatian municipalities—Vladislavci, Gorjane, and Strizivojna.

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As part of this project, solar power plants will be installed on 30 public buildings, 13 smart bus stops will be set up, and energy-efficient public lighting will be modernized. A key outcome will be the formation of an energy community in Subotica later this year, which will serve as a model for the broader expansion of this practice.

Local governments as drivers of change

With 75% of the population living in urban areas, local governments play a crucial role in the energy transition. A growing number of citizens live in residential buildings, and the construction sector in Serbia consumes around 40% of the country’s total energy. Residential buildings are the largest energy consumers within this sector, and most multi-apartment buildings in Serbia fall behind modern energy efficiency standards, further straining already limited resources. Therefore, investments in energy-efficient buildings and infrastructure are essential to reduce the use of energy sources that negatively impact the environment and public health.

As part of the Sustainable Energy Development Support project, and in collaboration with the Better Energy project by the U.S. Agency for International Development (USAID), NALED will establish a Council for Sustainable Energy Development. This council will enable strategic coordination between all relevant stakeholders and provide support to local governments in preparing action plans, budgets, and strategies for improving energy efficiency.

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Training programs for officials in ten pilot municipalities will be developed to create conditions for necessary support for citizens on their energy transformation journey. Special focus will be placed on multi-apartment buildings, as well as other public facilities, to optimize energy consumption and reduce the negative environmental impact.

The energy transition is not only a challenge but also a tremendous opportunity for transforming the economy and society. It brings new business models, greater savings, and an improved quality of life while contributing to the preservation of natural resources and the reduction of climate risks. NALED is ready to support local governments and businesses, with the assistance of both domestic and international partners.

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