KfW-funded study proves business case for planned biomass CHP in Serbia's Subotica
BELGRADE (Serbia), July 20 (SeeNews) – The feasibility study for a planned 27 million euro ($35 million) biomass-fired combined heating and power (CHP) plant in the Serbian city of Subotica has proven that the project is viable from an economic point of view, the director of the local heating plant Suboticka Toplana said.
With the completion of the feasibility study, funded by German development bank KfW, it is now time to make a decision on pushing ahead with this investment, Pero Rikic said in a statement posted on the website of the municipality after a public presentation of the findings of the study was held on Friday.
The CHP plant, planned to come on stream in 2017 at the latest, will have a 5.0 megawatt (MW) electric and a 10 MW heating power capacity, which will create conditions to switch from seasonal to year-round operations, Rikic said.
KfW funded the study for the purposes of Suboticka Toplana as a pilot effort within the framework of the 108 million euro Biomass Market Development in Serbia project.
According to Subotica mayor Modest Dulic, the investment in the CHP plant - which will make use of the abundant plant and crop waste in the area, is expected to be recouped in 10-12 years.
Serbia's northern province of Vojvodina, where Subotica is located, has budgeted funds this year for drafting pre-feasibility studies and masterplans for eight municipalities and feasibility studies and conceptual design for four to five municipalities for the implementation of projects for the use of biomass and geothermal energy in district heating systems, Vitomir Vuckovic, under-secretary at the provincial energy secretariat, said in the statement.