Development of District Heating in Ukraine

DemoUkrainaDH, a facility for funding demonstration projects in the District Heating Sector of Ukraine, was introduced by NEFCO in 2012. The services included technical support in project preparations and implementation, as well as assistance concerning project management and procurement. The projects covered both production and distribution of district heating with the aim of introducing more energy efficient and cost-effective solutions based on modern European technology instead of traditional FSU technology. The investment projects typically included Boiler house rehabilitation, introduction of biomass, installation of Individual Heating Substations and distribution pipeline replacement. Financing was made through grants and loans through NEFCO and a small part financed directly by the utilities.

There were 10 cities included in this first phase and the project continued with 10 more cities from 2016.

Many feasibility studies have been carried out in FSU countries since 1990, but very few have resulted in true projects. This project is one of the exceptions where NEFCO designed a methodology where investments did occur.