Valjevo Energy

The energy of the Earth beneath Valjevo becomes Valjevo Energy.
Geothermal Potential of Valjevo
Research conducted by the Faculty of Mining and Geology, University of Belgrade, has confirmed significant geothermal potential in Valjevo and its surroundings. This potential is based on underground waters with temperatures ranging between 40°C and 62°C (with an estimated average temperature of 50°C).
These findings confirm the feasibility of developing a sustainable energy infrastructure, including district heating systems for households and public buildings.
Five zones with valuable renewable thermal and subthermal underground water resources have been identified:
Zone 1
District Heating Plant (Toplana) and Wastewater Treatment Facility
Zone 2
Beloševac settlement
Zone 3
Banja settlement
Zone 4
Šušeoka settlement
Zone 5
Divci settlement
Due to their location and proximity to existing infrastructure, Zones 1 and 2 are of particular strategic importance, as they most likely enable the near-term use of geothermal energy within the Valjevo District Heating Plant, for the production of thermal energy and district heating of residential and commercial buildings.


Benefits for Valjevo
By using these resources, Valjevo could achieve dual benefits:
Reduction of air pollution
Decreased use of fossil fuels that cause emissions of harmful gases and particulate matter
More affordable heating prices
Utilization of significantly cheaper thermal energy from geothermal water and reduced dependence on volatile fossil fuel prices
The use of geothermal energy could further stimulate local economic development and position Valjevo as a leader in renewable energy utilization in Serbia.
With strategic investments and infrastructure development, geothermal energy has the potential to transform Valjevo into a sustainable, energy-modern city, setting a strong example for other cities and municipalities.
Our Vision for Valjevo
Palkovsky proposes the development of a geothermal energy project through a public–private partnership with the City of Valjevo. Through private investment, the project would enable the use of geothermal energy for district heating, ensuring more affordable, environmentally sustainable, and cleaner heating for a large number of residential and commercial buildings in Valjevo.
Our vision is for the Valjevo District Heating Plant to begin using geothermal energy sources for district heating. This would make heating more affordable and therefore accessible to a larger number of potential users in Valjevo. With the expansion of the user base, the consumption of fossil fuels for heating would decrease, leading to a reduction in air pollution.
In this way, two strategic goals are achieved simultaneously: lower heating costs and cleaner air for the entire community.
Research conducted by the Faculty of Mining and Geology, University of Belgrade, indicates that two out of the five geothermal zones could be used as geothermal energy sources for thermal energy production in the Valjevo District Heating Plant:
Next Steps
To initiate the implementation of geothermal energy within Valjevo’s district heating system, additional research of underground thermal water reservoirs is required in order to fully assess the potential and define precise technical parameters for sustainable use.
How Would Geothermal Energy Be Used?
The Valjevo District Heating Plant currently produces heat by burning fossil fuels and distributes it through the city’s heating network to residential and commercial buildings.
Geothermal energy would transform this process by replacing fossil fuels with geothermal water at temperatures up to 60°C. Through a simple and well-established heat exchanger technology, thermal energy would be transferred into the heating system without negative environmental impact.
How Do We Move Toward Implementation?
Additional research is required to confirm the key technical and economic indicators for the use of geothermal energy from underground water resources. As a company, we have already invested and are prepared to continue investing the necessary funds into further research and testing of geothermal energy potential.
If the results of these studies confirm both the technical feasibility and economic viability of geothermal energy utilization, the project would proceed to the development and construction of the required technological infrastructure that would enable its practical use.
All activities would be carried out in a fully transparent manner, with the consent and support of the local community and the city authorities.
We propose that this project be implemented through a public–private partnership with the City of Valjevo, which is the founder of the public utility company JKP “Toplana Valjevo” (Valjevo District Heating Company).
The specific structure of the public–private partnership would be defined in agreement with the City of Valjevo and formally confirmed through the signing of a Public–Private Partnership Agreement.
What Benefits Does Valjevo Gain from This Project?
More Affordable Heating
The use of geothermal energy as a heat source could be significantly cheaper than the current reliance on fossil fuels for heat production. This would result in reduced thermal energy production costs, which could be transferred to the citizens of Valjevo through lower heating prices.
Reduction of Air Pollution
Lower district heating prices would make the system more attractive to citizens, leading to an increase in the number of users and a reduction in the overall use of fossil fuels for heating homes and commercial buildings in Valjevo.
This would lead to a significant reduction in air pollution in the city and its surrounding areas.
This represents a win–win scenario—the type of outcome our company strives to achieve in all of its projects.
Where Are We Now?
Desk / Feasibility Studies
- Initial exploration designs for hydrogeothermal (HGT) potential and accompanying documentation
- Preliminary Economic Assessment (PEA)
Field Works
- Exploratory hydrogeological drilling
- Installation of exploratory and production test wells
Desk / Feasibility Studies
- Study on the conditions for the utilization of hydrogeothermal resources
Desk / Feasibility Studies
- Study on the conditions for exploitation of hydrogeothermal (HGT) resources
- Decision (administrative act) on nature protection measures and conditions for resource utilization
- Study on sanitary protection zones of groundwater abstraction sites, i.e. the administrative act approving the preparation of the said Study
- Proof of ownership or right of use / easement over the land parcels on which the facilities are located
Field Works
- Construction of facilities
Desk / Feasibility Studies
- Location Conditions
- Construction Permit
- Technical Inspection of Facilities
- Use Permit