The Government of Serbia is interested in taking over the Plandište wind farm project from oil and gas company Naftna Industrija Srbije and renewable energy firm MET Renewables. They have been jointly developing the project for over ten years.
The Plandište project, with a capacity of 102 MW, was a topic at the latest meeting of the Board of Directors of Naftna Industrija Srbije (NIS), attended by Minister of Mining and Energy Dubravka Đedović Handanović and Chairman of Gazprom Neft’s Executive Board Alexander Dyukov.
Gazprom Neft holds a 44.85% share in NIS, while its parent company Gazprom has another 11.3%.
Alexey Urusov was elected as the new chairman of the NIS Board of Directors, while Dragutin Matanović was appointed vice chairman.
Serbia aims to increase its renewable energy capacity
During the meeting it was noted that there is interest by the state of Serbia in taking over the construction of the Plandište wind park together with Hungarian company MET, thereby increasing the capacities from renewable sources in line with the strategic energy transition goals, the ministry said.
It revealed no further details. The current owners of the project are NIS and Switzerland-based MET Renewables.
The Plandište wind farm was one of the projects that obtained feed-in tariffs from the ministry under the first quota of 500 MW for wind power plants in Serbia. All other projects, totaling 397 MW, have long been completed – Čibuk 1, Kovačica, Košava 1, Alibunar, Kula, Malibunar, and La Piccolina.
The wind farm was initially scheduled for completion in 2014, then postponed to 2019
The project was originally owned by Energowind, a company founded in 2005 by private investors. In late 2012, NIS bought a 50% share, and the firm was renamed NIS Energowind. Energowind’s CEO Goran Novaković, who was earlier Serbia’s energy minister, has signed the contract with NIS’s then-CEO Kirill Kravchenko.
At the time, the wind farm was scheduled to be completed in 2014, and construction formally began in September 2013. However, there was no progress until March 2019, when MET Renewables, owned by Hungarian private investors, purchased the other 50% stake from the initial owners. The joint firm was named NIS MET Energowind.
The building permit was amended in 2023
Shortly afterward, it was announced that the wind farm would be completed by 2021.
Project firm Wind Park Plandište received the status of privileged renewable energy producer in 2015. It is a right to feed-in premiums, a fixed price for electricity, over a 12-year period. The status has been extended multiple times, most recently in 2018 until 2020, according to the registry of privileged producers on the ministry’s website.
The project firm said that the building permit, amended in 2023, envisages the construction of 17 wind turbines, each with a capacity of 6 MW. The detailed regulation plan, revised in 2022, enables the construction of up to 20 wind turbines with a capacity of up to 7 MW each, according to the firm’s website.
The Government of Montenegro adopted urban planning and technical conditions for a solar power plant of 81.1 MW in peak capacity in Pljevlja. The site for the facility is part of a coal mining complex.
Greece is the most successful by far in the Balkans in transforming coal land into clean energy and advanced technology hubs. The projects in the region are mostly for solar power plants. Neighboring North Macedonia is next when it comes to implementation, while Romania and Bulgaria as well as Serbia and Slovenia have made their first steps. Bosnia and Herzegovina and Kosovo* are still in the planning phase, and now Montenegro is joining them with a photovoltaic project.
The government in Podgorica adopted the urban planning and technical conditions for a solar power plant of 81.1 MW in peak capacity in Pljevlja. The facility in the country’s north called Rudnik uglja would be in the Ilino Brdo I cadastral unit, on the site of the Potrlica open cast coal mine.
According to a study submitted with the application, the connection capacity would be 62.5 MW. The coal mine’s operator and PV project developer, Rudnik uglja Pljevlja, said the location spans 62.6 hectares.
The government plans to close the Pljevlja coal plant in 2041
The firm is a subsidiary of state-owned power utility Elektroprivreda Crne Gore (EPCG), which runs the Pljevlja power plant in the same complex. It is the only coal-fired facility in Montenegro. The government plans to close the thermal power plant, currently under reconstruction, in 2041.
Rudnik uglja Pljevlja presented a just transition plan in March. It aims to establish 12 businesses to transform the region and spin them off. They include construction, transportation and the installation of a small hydropower plant called Durutovići and a photovoltaic facility.
The previous government initiated the development of a plan two years ago for an industrial complex in Pljevlja. There are several separate renewable energy projects in the area as well.
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* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
RP Global has secured a EUR 12.2 million loan to build its Novalja solar power plant in Croatia.
In late April, Austrian company RP Global began the construction of the Novalja photovoltaic plant at the Zaglava site on the island of Pag.
The European Bank for Reconstruction and Development (EBRD) said it approved a senior non-recourse project finance loan of up to EUR 12.2 million to RP Global Novalja d.o.o., owned by RP Global Energy GmbH, for the development and construction of the 21 MW Novalja PV plant in Croatia.
The project has been approved under the EBRD InvestEU Framework for Sustainable Transition.
The loan is divided into two tranches
The loan is split into two tranches: one amounting to a maximum of EUR 7.2 million, and the second of up to EUR 5 million, benefiting from a 20% first loss coverage under the EBRD InvestEU Framework for Sustainable Transition, the bank’s decision reads.
The total project cost is estimated at EUR 16.3 million.
The endeavor includes the installation of 35,776 photovoltaic panels. The expected annual electricity production is around 31,000 MWh, enough to supply about 12,000 households.
According to the EBRD, the project supports innovative offtake arrangements. It will combine a national renewables support with a merchant exposure in later years.
RP Global won premiums for its project at auctions
Last July, the Croatian Energy Market Operator (HROTE) awarded premiums for solar and hydropower plants with a total capacity of 420 MW. RP Global’s Novalja was among them, with 15 MW.
Back in 2022, the company said it intended to build wind farms and solar parks of 500 MW overall in Croatia over the next five years.
RP Global has completed two renewable energy projects in Croatia: the Danilo wind farm near Šibenik and the Rudine wind park near Dubrovnik.
Of note, the island town of Novalja could become one of the first in Croatia to begin the production of green hydrogen, and a rare example in the region. A project was launched in May.
Faria Renewables has signed a loan agreement with Attica Bank for the construction of a battery energy storage system (BESS). The project is worth EUR 28 million. In addition, Cero Generation passed a milestone toward a 250 MW battery storage investment.
A BESS project selected last year in Greece’s second battery storage auction is now a step closer to materialization, Faria Renewables revealed. The company signed a loan deal with Attica Bank for the construction of the system. It would have 49.9 MW in capability and a capacity of 134.2 MWh.
The investment is worth EUR 28 million, the company added. Its first BESS unit, for which it earlier signed a contract with Huawei, would be connected to a 150/20 kV substation, currently under construction. Construction is expected to be completed before the end of September, the update adds.
BESS project benefitting from EU funds
The project is being implemented under the National Recovery and Resilience Plan Greece 2.0, with funding from the European Union – the NextGenerationEU and its Recovery and Resilience Facility (RRF) segment.
“Our collaboration with Attica Bank for the implementation of this significant energy storage project marks another crucial step in delivering sustainable energy solutions that support the country’s energy transition goals. We share a common vision to contribute to a greener society by designing and carrying out energy solutions that combine expertise, sustainability, and innovation,” Faria Renewables’ Chair and Chief Executive Officer Thalia Valkouma stated.
The renewables and energy storage developer has a portfolio in Greece exceeding 3 GW. It said it is exploring opportunities in new markets in Europe.
One of largest energy storage investments in Greece
According to Attica Bank’s Chief of Asset and Specialized Financing Christos Iliopoulos, the new agreement is for one of the largest investments in the energy storage sector in Greece.
“Attica Bank remains strategically committed to supporting the green transition and energy security of the country by financing projects that enhance the transformation and resilience of the energy system. Our partnership with Faria Renewables for the construction of a storage project is fully aligned with this philosophy,” he said.
The investment will help the integration of renewable sources into the national grid and enhance system flexibility, the announcement reads.
Greece has held a series of three auctions for subsidizing standalone BESS to get the market segment rolling, on the path toward its 2030 target of 4.7 GW.
Cero Generation makes progress toward 250 MW battery storage investment
In other news, Cero Generation Holdings, a subsidiary of Macquarie Asset Management, won an approval from Greece’s Ministry of the Environment and Energy for five BESS stations. Each would have 50 MW in operating power and 153 MWh in effective capacity (or 170 MWh nominally).
Project firms Energy Ventures 6 and Energy Ventures 10, in which Cero Generation holds 85%, received environmental terms (AEPO) for the proposed investment in Pelinnaioi, in the municipality of Farkadona in Trikala, Thessaly.
The European Union is set to install less new solar capacity in 2025 than it did last year – the first annual drop in a decade, according to SolarPower Europe.
In its mid-year analysis of the photovoltaic market in the EU, SolarPower Europe said new installations are expected to decrease 1.4% this year. It would be the first slowdown since 2015. The market increased by 47% in 2022, by 51% in 2023, and by 3.3% in 2024.
The EU is set to add 64.2 GW, compared to 65.1 GW in 2024, SolarPower Europe said.
The update comes after solar became the EU’s largest source of electricity for the first time, in June 2025. According to Ember, photovoltaics generated 22.1% of EU electricity (45.4 TWh) last month, more than any other power source. In absolute terms, it was a year-over-year increase of 22%.
Dries Acke, Deputy CEO of SolarPower Europe, said the 1.4% decline may seem small, but that the symbolism is big. In his view, a market decline, right when solar is meant to be accelerating, deserves EU leaders’ attention.
“Europe needs competitive electricity, energy security, and climate solutions. Solar delivers on all of those needs. Now policymakers must deliver the electrification, flexibility and energy storage frameworks that will drive solar success through the rest of the decade,” Acke stated.
The European Commission’s 2025 target for overal PV capacity is 400 GW, while by the end of the year the bloc should host 402 GW. To meet the 2030 target, and deliver the continent’s decarbonisation and competitiveness goals, Europe must install nearly 70 GW per year through the rest of the decade, according to SolarPower Europe.
Rooftop segment is shrinking
The projected decrease in solar is driven primarily by a declining rooftop segment, particularly home solar, the report reads.
Traditionally strong residential rooftop solar markets, like Italy, the Netherlands, Austria, Belgium, Czechia, and Hungary, are slowing. Households there are now postponing installations as the impact of the 2022 energy crisis wanes, according to the association.
There is one more reason – a withdrawal of incentive schemes without adequate replacements. It resulted in a residential rooftop market collapse of over 60% versus 2023 in most of the group. Similarly, Poland, Spain, and Germany are experiencing a decline of over 40%. Good news comes from utility-scale solar. It is expected to continue growing and amount to around half of all new capacity additions.
The authors of the outlook attributed the confidence to improved auction design, and the boost in auction-deployed solar from hybrid and co-located storage projects, especially in Germany and Bulgaria. Germany leads in solar auctions, followed by the Netherlands, France, and Italy, with Poland and Ireland also scaling up, the report underlines.
It also points to a weakening in the segment of corporate power purchase agreements (PPAs). They have been a key driver of utility-scale solar in recent years. However, in 2025, falling electricity prices have reduced buyers’ incentive to sign long-term deals.
New solar PPA signings have dropped by 41% in the second quarter of this year against end-March, according to the report.
Author: Ivan Gazdić, Attorney at Law and Partner at Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz
For many years, Belgrade has struggled with long-standing urban, infrastructural and environmental challenges that have impeded its progress towards sustainable development in accordance with the standards of contemporary European cities. The main obstacles to Belgrade’s urban advancement include poorly regulated construction, persistent traffic congestion, high levels of air pollution and a chronic lack of green spaces. To reach the level of cities like Vienna or Paris, Belgrade should undertake systemic reforms, establish a clear development strategy, and ensure more decisive action by the city authorities.
An analysis of the current situation reveals that Belgrade holds significant potential for transformation. This ranges from preserving its cultural heritage and implementing coordinated development in the city centre to introducing sustainable mobility solutions tailored to pedestrians and cyclists. Further opportunities lie in investing in green initiatives and developing affordable housing, drawing on best practices from across Europe. Nevertheless, without a more robust city budget and stronger support from both experts and the wider public, these ambitions risk remaining little more than aspirations.
Architectural identity of Belgrade: between heritage preservation and modern development
Achieving sustainable urban development in Belgrade requires a careful balance between modern construction and the preservation of historical architecture. Areas featuring buildings from the late 19th and early 20th centuries – structures that form the bedrock of Belgrade’s cultural heritage and architectural identity – are particularly vulnerable.
Among the architectural styles of this period, academism stands out as especially prominent. Its defining features – symmetry, monumentality and richly decorated façades – have left a lasting imprint on the city’s visual and cultural character. The National Theatre and the National Museum are among the most distinguished examples of academic architecture in Belgrade, and the city’s main cultural landmarks at the Republic Square (Trg Republike), one of the city centre’s most significant urban spaces.
The new opera house could be designed to incorporate elements of academism
For these reasons, any new development in the central urban zones needs to be approached with great care and fully harmonised with the historical context.
One notable proposal in recent years is the construction of a landmark opera house on the site of the current Staklenac shopping centre at the Republic Square. Given the enduring popularity of the historicist and decorative styles among Belgrade residents, the new opera house could be designed to incorporate elements of academism.
Such an approach would not only ensure architectural coherence with the National Theatre, but would also create a direct aesthetic and cultural link to the era when the idea of building an opera house in Belgrade was first seriously considered.
Opera (photo: AI-generated illustration – OpenAI, 2025)
However, it is important to emphasise that preserving Belgrade’s identity does not mean relying solely on historical architectural styles. Contemporary Serbian architecture is equally important for maintaining the authenticity of the city’s urban fabric and adapting it to modern needs.
To fully harness this potential, the city should continuously promote local architects through regular public competitions, professional exhibitions, and the implementation of the most successful proposals – following the model of established European architectural practices. Initiatives such as BINA and mandatory architectural competitions create opportunities for innovation and give young architects in Belgrade a chance to shape the city’s contemporary architectural identity.
Mia Dorćol, an award-winning project of the Zabriskie studio, one of the notable examples of contemporary architecture in Belgrade (photo: zabriskie.rs/Ilya Ivanov)
One of the most notable examples of successful public architectural competitions in Serbia was the international competition held in 2021 for the new Belgrade Philharmonic building at Ušće, organised by the United Nations Development Programme (UNDP) and the Government of Serbia.
The winning proposal, by London-based Amanda Levete Architects (AL_A), envisioned a concert hall without a defined front or back façade, allowing for seamless integration with the landscape of Ušće Park and the Danube River. Architect Amanda Levete described the project as “an expression of harmony between nature, architecture and music”, emphasising the need to “bring nature back into our cities to make them greener and more beautiful places”.
In line with this vision, the design features a green roof and landscaping with native tree species. The new Philharmonic building thus stands as an example of sustainable and contemporary architecture in Belgrade. However, despite receiving positive evaluations from the professional community, the project has been delayed due to uncertain funding and administrative hurdles relating to the building permit.
Future Belgrade Philharmonic building, integrated into the Ušće Park landscape (render: AL_A/Zabriskie Studio)
Unfortunately, the opportunity to showcase contemporary domestic architecture through the Belgrade Waterfront project appears to have been missed. The project has frequently been criticised for its lack of alignment with the urban and cultural context of Belgrade. According to many architects, it prioritises spectacle and commercial appeal over authenticity, failing to reflect the spirit of Belgrade’s urban culture.
It draws neither from the architectural language of Belgrade academism nor from the legacy of socialist modernism in New Belgrade, instead adopting the global International Style – a contemporary architectural trend that heavily favours glass and steel, with little regard for local or historical references.
Given the growing disconnect between new construction and the historical character of central Belgrade, establishing a professional body to oversee architectural standards in the inner city seems increasingly necessary. Composed of architects and art historians, such a body would be empowered to review new projects and reject or condition those that are not appropriate for the historic urban core of the capital.
Terazije as the Times Square of Belgrade
Walking through Terazije in Belgrade, it’s hard not to notice the Albania Palace – a building that has stood as a symbol of modern architecture in the capital for decades. Interestingly, before the Second World War, there was a plan to build Mitić’s Palace, intended for a different location but never realised. However, when we look at the architectural drawings of Mitić’s Palace, the resemblance to Albania Palace is striking, allowing us to imagine what Albania might have looked like had it been built with a few additional floors.
Mitić’s Palace, an excerpt from the newspaper Vreme, 10 November 1940, p. 5 (digitised by the University Library Svetozar Marković)
In her text on the history of the building, Milica Ceranić notes that architect Ivan Zdravković once remarked that the Albania Palace appeared somewhat unbalanced – as if something were missing from the top. The idea of upgrading the building was considered in the late 1980s, when architect Branko Bon proposed adding several floors to make the structure “more graceful and less squat”.
With careful planning and respect for heritage preservation guidelines, such an upgrade could one day restore the building’s lost prominence, which was diminished by the construction of taller surrounding buildings in the second half of the 20th century. It could also help reshape the modern image of Terazije as a lively urban square in Belgrade – echoing the energy of major public squares around the world.
Why Belgrade isn’t a city for cyclists – and why it needs to become one
Traffic and mobility remain among key unresolved urban issues in Belgrade. The lack of a developed cycling infrastructure, combined with an overburdened public transportation system, is recognised as one of the main factors contributing to traffic congestion and increased air pollution. Introducing safe, physically separated bike lanes in the capital would not only improve road safety but also encourage broader use of bicycles as a means of transport.
Following the construction of a network of physically separated bike lanes in Seville, the number of bike trips rose by more than 400%, while the risk of traffic accidents per trip dropped by around 60%. In Belgrade, where cyclists often ride on pavements due to the lack of space on the roads, the need for the planned development of safe and separate bike infrastructure is becoming increasingly clear.
In central Belgrade, heavy traffic congestion is often caused by vehicles parked on pavements and a chronic shortage of garages, while pedestrian zones are limited to just a few streets – such as Knez Mihailova, Obilićev Venac and Topličin Venac.
Experts have long emphasised the need to expand pedestrian zones in Belgrade, which is standard practice in well-organised European cities. Instead of serving as a pedestrian zone and an attractive tourist destination, Kosančićev Venac, the oldest preserved historical area in Belgrade, has been left to traffic chaos and is clogged with parked cars every day.
Prioritising infrastructure that supports sustainable mobility is no longer just a matter of urban planning – it is a question of public health and the city’s long-term resilience
Recently, Paris held a referendum approving the gradual closure of 500 additional streets to traffic and a 10% reduction in parking, significantly decreasing the number of cars in the city centre. At the same time, the Paris city administration is investing in the creation of new parks and the expansion of green areas in urban neighbourhoods, accompanied by a strong public push for streets to be shared more fairly and adapted to the needs of pedestrians and cyclists.
In addition to enhancing safety and accessibility for pedestrians and cyclists, investing in new infrastructure plays a vital role in protecting the environment. Encouraging alternative modes of transport, such as cycling and walking, helps reduce car dependency, leading to lower emissions of harmful pollutants that significantly degrade air quality in Belgrade.
Cities like Copenhagen and Amsterdam, which have consistently invested in pedestrian-friendly and cycling infrastructure, report noticeably lower pollution levels and a higher quality of life for their residents. With air pollution episodes becoming increasingly frequent in Belgrade, prioritising infrastructure that supports sustainable mobility is no longer just a matter of urban planning – it is a question of public health and the city’s long-term resilience.
Energy efficiency and urban sustainability in Belgrade
nZEB and ZEB standards: EU regulations and Serbia’s position
Energy efficiency is a cornerstone of the European Union’s climate and energy policy. Under the revised Energy Performance of Buildings Directive (EPBD), all new buildings in the EU must meet near-zero energy building (nZEB) standards, while existing buildings are to be systematically renovated to reduce both energy consumption and greenhouse gas emissions.
The Fit for 55 package has raised the bar even higher: by 2030, the EU aims to reduce overall greenhouse gas emissions by at least 55% compared to 1990 levels, with the building sector expected to play a key role in achieving this target.
nZEB standards are still not clearly defined at the national level
The most recent revision of the EPBD stipulates that, beginning on 1 January 2028, all newly constructed public buildings must comply with the Zero‑Emission Building (ZEB) standard. Starting on 1 January 2030, this requirement extends to all new buildings – both residential and non‑residential. ZEBs must feature extremely high energy performance, produce zero on-site carbon emissions from fossil fuels, and ensure that any remaining energy demand is met exclusively through renewable energy sources (on-site, nearby, or via district systems).
As a contracting party to the Energy Community and a candidate for EU membership, Serbia is required to gradually align its national legislation with EU regulations. However, nZEB standards are still not clearly defined at the national level, and to date, no public building in Serbia has been constructed according to these criteria.
National project for nearly zero-energy buildings: Belgrade among participating cities
The Nearly Zero-Energy Buildings in Serbia project, launched at the end of 2023, has a total budget of EUR 77.68 million – EUR 50 million in concessional loans from KfW and EUR 27.68 million in grants provided by the EU, the German government, REEP and IPA funds. The project consists of three components: the energy rehabilitation of approximately 35 public buildings, the installation of solar panels on around 125 buildings, and the pilot construction of one or two buildings in line with the nZEB standard.
Implementation is scheduled to continue until February 2026, with expected energy savings of at least 40% and an overall annual reduction in CO₂ emissions of around 11,750 tonnes (6,900 tonnes through building rehabilitation and 4,850 tonnes through solar panel installation). So far, teams and working groups have been established to identify the buildings to be included, while public calls and the start of construction work are expected in 2025. The locations and building types planned under the nZEB pilot component have not yet been disclosed, indicating that this part of the project is still in the preparatory phase.
International support for energy efficiency: 30 public buildings in Belgrade undergoing renovation
In 2024, two major energy renovation projects for public buildings were launched in Belgrade, with a combined value exceeding EUR 50 million.
The first project involves the rehabilitation of 26 state-owned buildings – including the Palace of Serbia and the Institute for the Improvement of Education – with support from the Council of Europe Development Bank (CEB) and UNDP. Completion is planned for 2027. The upgrades include window and door replacement, thermal insulation, LED lighting and other energy efficiency measures, along with the integration of renewable energy sources. These improvements are expected to reduce energy consumption by 36–50%, lower CO₂ emissions by around 45%, and generate average annual savings of EUR 10,000 per facility.
At the same time, the project “EU and EBRD for Energy Efficiency in Belgrade” is underway, targeting four municipal institutions: the Belgrade City Library, the Student Polyclinic, the Student Hospital, and the Institute for Emergency Medical Assistance. The EU has allocated EUR 11 million in grants, while the EBRD has provided an additional EUR 5 million in loans. Similar renovation measures are expected to deliver energy savings of 46–86% and reduce CO₂ emissions by 41–74%. The tender was announced in May 2023, and construction began in May 2024, with completion expected by 2026.
Belgrade without a fund, but relying on temporary solutions for residential building renovation
More than 85% of existing residential buildings in Serbia remain energy inefficient. The previously announced city fund for improving energy efficiency – intended to support window and door replacement, façade insulation and heating system upgrades – never came to fruition in its intended form. Instead, the City of Belgrade adopted an alternative model: periodic public calls for awarding subsidies for construction or renovation works, or loans for housing associations.
However, a fund based on the revolving principle would offer a more sustainable solution to the long-term challenge of deteriorating buildings. Initially financed through the city budget and donor contributions and later replenished via user repayments through public utility company Infostan (the City of Belgrade’s consolidated billing and collection of utility services), such a model would enable continuous reinvestment in new projects. This would create a stable, transparent and self-sustaining financing system, with a significantly lower risk of misuse compared to current subsidy schemes and individual loan arrangements.
The Fund for the Improvement of Energy Efficiency in Serbia exists within the legal and strategic framework, but it has yet to be fully institutionalised
At the national level, the Fund for the Improvement of Energy Efficiency in Serbia exists within the legal and strategic framework, but it has yet to be fully institutionalised or to function as an independent operational body.
Currently, funding for energy efficiency is provided through alternative mechanisms – such as public calls from the Ministry of Mining and Energy, local co-financing programmes and international projects. Still, it is expected that the fund will be formally established in the coming years and begin operating at full capacity, aligned with European standards and the goals of sustainable development.
The untapped potential of Belgrade’s rivers: still no wastewater treatment plants
Revitalising the rivers and opening access to the banks of the Sava and the Danube for recreational use would significantly enhance quality of life and boost Belgrade’s tourism appeal. Many European cities have transformed previously neglected riverbanks into vibrant public spaces – a notable example being Madrid’s Madrid Río, a ten-kilometre green oasis created by burying the highway along the Manzanares River and adding walking paths, sports fields, playgrounds and even sandy beaches.
In July 2025, Paris broke a century‑long precedent by officially reopening the Seine to swimming for the first time since 1923, following a EUR 1.4 billion cleanup ahead of the 2024 Olympic Games.
Meanwhile, Zagreb, Budapest and Prague have already built or modernised large facilities for municipal wastewater treatment, yet Belgrade still has over one hundred direct discharges flowing freely into the Sava and the Danube – without any purification. Estimates show that a complete system of sewage collectors and the construction of five wastewater treatment plants would require at least EUR 1 billion to EUR 1.5 billion.
The government signed commercial contracts worth EUR 3.2 billion with Chinese company CRBC
Although the construction of the main wastewater treatment plant in Veliko Selo is included in the national Clean Serbia programme, the method of financing and the exact scope of work have yet to be clearly defined.
Official sources confirm that EU grants were also considered for projects such as the Belgrade wastewater treatment plant (which Serbia uses, but which, according to available reports and assessments by relevant institutions, are insufficient for investments of this scale). Instead, at the end of 2021, the government signed commercial contracts worth EUR 3.2 billion with Chinese company CRBC (financed through a Chinese loan) for the Clean Serbia programme, aimed at building a sewage network and wastewater treatment plants in 65 municipalities at 73 locations across the country, including parts of Belgrade.
Shortage of green spaces: Belgrade falls short of WHO recommendations
According to the World Health Organization (WHO), Belgrade does not have enough green space per capita. This underscores the urgent need for systematic approach to urban planning that focuses on expanding parks and green areas, as well as ensuring more regular and higher-quality maintenance of existing greenery. Rather than relying on an ad hoc approach, the city needs a long-term strategy to increase green space per resident and enhance the overall quality of urban life.
Belgrade is experiencing a declining trend in green space per capita – citywide estimates range between 14 and 20 m² per person, while in central municipalities such as Vračar, that figure drops to just 2 to 3 m². This is significantly below the WHO’s recommended minimum of 9 m² per person, and even further from its ideal benchmark of 50 m² per person.
The forgotten plans of Mali Kalemegdan
As early as the late 19th century, urban planners envisioned transforming the Belgrade Fortress into a structured city park filled with attractions. The first public competition for the design of the Kalemegdan park was held in 1898, and the winning proposal by architect Dimitrije T. Leko included the addition of artificial water features in Mali Kalemegdan (the lower section of the park). Leko’s design featured a small lake – referred to as “the pond” – and a stream with a waterfall located near children’s playgrounds.
This made the park a major attraction in the early decades of the 20th century. At the time, the city even installed a dedicated water supply system, drawing water from the Sava River for irrigation and to fill the ponds. These water features, however, disappeared in 1936 with the construction of the Belgrade Zoo.
Mali Kalemegdan (photo:_AI-generated illustration – OpenAI, 2025)
Reportedly, on the occasion of the 120th anniversary of the first Kalemegdan park plan, some admirers of Belgrade’s historical heritage proposed restoring the stream, waterfall and pond as a tourist attraction. However, the outcome of this initiative remains uncertain.
Most residents of Belgrade seem to agree that Kalemegdan should be cleared of all unnecessary and improvised structures that undermine its cultural and historical character – such as souvenir stalls, temporary kiosks and ad hoc café terraces – that have proliferated over time across the fortress plateaus. Removing these makeshift structures would allow for a more authentic and unobstructed experience of this nationally significant cultural landmark.
Housing and social policy
Unlike Vienna – where as many as 62% of residents live in subsidised apartments with below-market rents – Belgrade has virtually no meaningful stock of municipal housing. Rental and housing prices in the city have reached levels that are disproportionate to local incomes. Experts note that the construction of socially affordable housing would significantly alleviate the housing crisis, particularly among young people and students. While Vienna invests approximately EUR 600 million annually in the construction of new apartments, thereby helping to stabilise the housing market over the long term, Belgrade allocates only symbolic amounts to such initiatives.
In this context, the public-private partnership (PPP) model could offer an effective solution for building student dormitories and addressing the chronic shortage of student accommodation. One successful example comes from Nikšić, Montenegro, where a student residence was built through a PPP contract. Similar projects are now being explored throughout the Western Balkans.
Budget and financial challenges
The City of Belgrade’s budget for 2025 is approximately EUR 1.6 billion. With an estimated 1.68 million residents within the city’s administrative territory, this translates to around EUR 950 per capita annually. By comparison, Vienna planned a budget of approximately EUR 19.8 billion for the same period; with around 2.03 million residents, this equates to roughly EUR 9,800 per person. Paris adopted a budget of EUR 11.3 billion for 2025, which corresponds to approximately EUR 5,500 per capita, based on a population of about 2.05 million.
In Serbia, local self-governments receive a portion of the personal income tax (PIT) – primarily the salary tax – based on citizens’ registered place of residence. According to the Law on Financing Local Self-Government, since 2016, 77% of salary tax revenues are allocated to cities, while Belgrade receives a reduced share of 66%. These percentages were higher in the past. This means that Belgrade currently retains 66% of the salary tax revenue generated within its territory. Other components of PIT (such as those from self-employment or agriculture) are allocated entirely to local budgets.
It appears that reforms to public finance and fiscal policy should be considered
In contrast, Serbia’s value added tax (VAT) revenue is retained in full by the central government. Local governments do not receive a direct share of VAT; instead, funds are allocated through general, non-earmarked transfers. As a result, Belgrade cannot rely on a stable inflow of VAT revenue – unlike cities in countries such as Austria, where a portion of VAT is allocated directly to local governments and constitutes a significant part of their budgets.
Given these structural limitations and compared with the budgetary capacities of other major European cities, it appears that reforms to public finance and fiscal policy should be considered. Without such changes, Belgrade will continue to face significant constraints in funding strategically important projects – including those essential to the city’s transition towards a greener and more sustainable future.
Is Belgrade ready to catch up with Europe in sustainable development?
Belgrade’s development in the spirit of modern European cities is achievable only through long-term planning, a clear vision and well-defined priorities – not through short-term decisions or frequent shifts in direction. A more functional urban future requires a larger city budget, more efficient use of public funds, and the coordinated implementation of urban planning initiatives.
At the same time, Belgrade should invest in the revitalization of historic urban cores, the expansion of pedestrian zones, the development of cycling infrastructure, the construction of wastewater treatment plants, and the gradual adoption of the “Viennese model” of social housing. Achieving this vision will demand strong political will, strategic governance, and the active engagement of both experts and citizens.
The experiences of cities such as Vienna and Paris demonstrate that, while such development may require significant public investment, it yields numerous long-term benefits.
Ultimately, Belgrade’s trajectory will depend on both the decisions of city leaders and the engagement of its citizens. From the authorities, responsibility is expected; from the public, initiative and participation. Time is not an ally – every decision made today shapes the Belgrade we will live in tomorrow.
