GIZ DKTI programme is supporting the Municipality of Arilje to develop and implement a 2 MW biomass heating system for 10 public buildings. The results of the feasibility study for this project, elaborated by GIZ DKTI, has been presented together with municipal authorities to the public audience on January 21, 2015.

The biomass heating system will connect 10 public buildings in Arilje with a grid lenght of 1,160 m. The current price for heating in the buildings to be connected averages 70 Euro/MWh, while the new system can provide heating prices of 20 Euro/MWh. Instead of buying expensive fuels like liquid gas, mazut or coal for heating purposes, the proposed biomass boiler will use around 1,050 tons of woodchips per year, which are sourced in  the region, increasing local income and productivity.  The investment costs for the biomass heating system including grid and substations are approximately 1,1 million Euro and will enable the Municipality of Arilje to accumulate additional savings of more than1 million Euro in 15 years in the public budget. Beside the economic benefits the project also conducts into a reduction of more than 1,500 tons of CO2-emissions per year.

The project is supposed to be financed by the KfW-MEGLIP credit line (, which supports Serbian municipalities to invest in environmental and renewable energy infrastructure. The next steps will be the elaboration of the main design for the boiler house and the grid, which is supported by GIZ DKTI programme in cooperation with the Energy Leap project for Arilje and Invanjica, financed by the Royal Norwegian Embassy in Belgrade.