Novi Sad has reopened procurement for a €7.6 million geothermal-based heating project, following the rejection of all offers submitted in the previous tender. The Toplana Mišeluk development is designed as a hybrid district-heating facility combining groundwater heat pumps, solar technology and natural-gas boilers, with planned capacity of up to 30 MW.
Municipal utility Novosadska toplana is seeking a contractor for the first phase, covering design, equipment supply, construction, testing and commissioning. The revised tender follows the cancellation of the previous procedure, after all submitted bids were deemed unacceptable.
Hybrid heating system combines geothermal and gas capacity
The initial phase includes a water-to-water heat pump with a minimum heating capacity of 415 kW, using groundwater at approximately 16°C and a specified flow rate of 7 litres per second.
The installation will also include a 1 MW natural-gas boiler and an additional gas-fired unit rated at 4 MW. Thermal storage will comprise tanks with capacities of 100 and 200 cubic metres, while hybrid photovoltaic-thermal panels will generate both electricity and usable heat.
Further development additional heat-pump and gas-fired capacity, depending on heating demand, with the long-term objective of reaching 30 MW. The configuration combines renewable heat recovery with gas-fired equipment for backup supply, peak demand and operational flexibility. In the initial phase, permanent gas-boiler capacity of 5 MW will significantly exceed the heat pump’s minimum capacity of 415 kW.
However, the actual contribution of renewable energy will depend on annual heat production, operating hours and gas consumption rather than installed capacity alone.
Electricity prices and operating efficiency
The project’s financial performance will depend substantially on electricity prices and the efficiency of the heat pumps. Their economic advantage is measured through the coefficient of performance (COP), which indicates the amount of thermal energy produced per unit of electricity consumed.
At an illustrative COP of 4, a heat pump generates 4 MWh of heat from 1 MWh of electricity. With electricity priced at €120/MWh, the direct electricity cost would amount to approximately €30/MWh of heat, excluding maintenance, pumping, network losses and capital recovery. By comparison, a gas boiler operating at 90% efficiency, with gas costing an illustrative €45/MWh, would incur fuel costs of approximately €50/MWh of heat.
These figures are illustrative rather than project forecasts. Actual economics will depend on electricity tariffs, gas procurement conditions, seasonal demand, heat-pump efficiency and the contribution of on-site solar generation and thermal storage.
Contract includes 10 years of maintenance
The first-phase procurement also incorporates 10 years of heat-pump maintenance and servicing, placing construction and long-term equipment performance within the same contractual framework. The contractor will be responsible for design, equipment delivery, construction, testing, commissioning and obtaining relevant approvals under the proposed turnkey arrangement.
Important performance indicators will include seasonal COP, electricity consumption per unit of delivered heat, equipment availability and groundwater-system reliability Water chemistry, filtration, scaling, corrosion and reinjection performance could also influence maintenance requirements and operating expenditure.
Previous tender cancelled after rejection of bids
The initial procurement was launched in July 2026 but was cancelled on September 29 after all submitted offers failed to meet the procurement requirements The available information does not establish whether the rejection resulted from pricing, technical compliance, bidder qualifications or other conditions.
The project requires coordination between heat-pump systems, gas boilers, solar installations, thermal storage, civil engineering and electrical and control systems. The clarity of technical requirements and allocation of responsibilities will therefore be important in attracting qualified contractors. The €7.6 million estimate covers the current first-phase procurement package and does not represent the total investment required to develop the planned 30 MW facility.
Heating infrastructure linked to Mišeluk development
The project is being developed in phases to accommodate expected residential and commercial construction in Mišeluk and parts of Petrovaradin. A temporary containerised boiler installation with approximately 1 MW of capacity is planned to supply initial consumers expected to connect during 2027 and 2028, ahead of completion of the permanent heating facility.
The timing of new customer connections will influence utilisation rates, annual heat sales and the fixed cost of supplying energy. Slower development could leave the heating system operating below planned capacity, while faster construction could require additional generation and distribution investment. The project also requires coordination between heating-network expansion, electricity supply, groundwater resources and the technical requirements of the permanent installation.
