World Bank approves $600 million for Serbia gas sector

The World Bank has approved $600 million for Serbia’s Gas Sector Development Program. This 10-year initiative, implemented through a Multiphase Programmatic Approach, aims to enhance the security, reliability, and resilience of the country's energy supply by investing in strategic gas infrastructure, addressing transmission bottlenecks, and improving underground storage capabilities.

The program also focuses on institutional strengthening, regulatory reforms, and governance to align Serbia's energy sector with European Union accession goals. Aisha Williams, the World Bank Country Manager for Serbia, noted that natural gas serves as a vital transition fuel as the nation reduces its reliance on coal and oil while increasing the use of renewables.

The first phase of the program includes approximately $195.5 million (170 million euros) dedicated to projects such as the Trupale-Pojate gas transmission pipeline and building technical and organizational capacity. While some environmental groups have raised concerns, the Serbian Ministry of Mining and Energy maintains that the project is a necessary modernization of the existing system and is fully compliant with climate and environmental standards.

Separately, World Bank President Ajay Banga has warned that the massive energy demands of AI data centers could hinder development in emerging markets, noting that these facilities often require more power than entire developed nations, potentially straining limited resources in developing economies.