The EBRD is helping to improve the energy efficiency of district heating systems in Montenegro with a €4 million loan sovereign loan to finance the construction of a new district heating system based on biomass in Pljevlja, in the north-western part of the country.
The heating facilities currently in use in Pljevlja are outdated and operate using brown coal. The proceeds of the EBRD loan will be used to convert the obsolete individual heating facilities in Pljevlja town centre to a ‘state-of-the-art’, centralised district heating system based on biomass.
The project will enhance significantly the energy efficiency of the district heating system in Pljevlja, reduce air pollution, and improve the overall quality of heat and hot water supply.
The construction of the district heating system is supported by an additional technical co-operation grant of €2.5 million from the European Union's Western Balkans Investment Framework and the EBRD's Shareholder Special Fund.
“The EBRD is pleased to support the introduction of a district heating system based on biomass in Pljevlja. The use of renewable energy will contribute to a cleaner environment in the Pljevlja. This is the first project of its kind in Montenegro, and the EBRD is prepared to support similar investments in other Montenegrin towns, as well as the wider region”, said Lin O’Grady, EBRD's Deputy Director for Municipal and Environmental Infrastructure.
“We are pleased to cooperate with the EBRD in the field of energy projects that have dual objective: improving environmental protection and ensuring better quality heating. We believe that this project will improve the living conditions for residents of Pljevlja and will contribute to solving the problem of pollution, which is a significant issue in this Municipality. It will also reduce losses in heat distribution and cut electricity bills for the households,” said Milorad Katnic, Minister of Finance of Montenegro.