Developing a national district heating strategy and energy plans for municipalities

Context

In Ukraine, district heating is an important pillar for supplying private households, municipalities and industry with heating: 60 percent of the Ukrainian population as well as municipal and industrial consumers receive their heating from more than 200 – mostly municipal – district heating companies. These companies use gas to generate heat.

The Russian Federation’s war of aggression has damaged and destroyed essential energy infrastructures in Ukraine. Targeted attacks on this infrastructure by the Russian Federation and suspended gas deliveries are major challenges for Ukraine when it comes to supplying its citizens. Ukraine must therefore step up its search for permanent alternatives to ensure that its cities have a reliable supply of district heating.

In addition, Ukrainian consumers are in need of state subsidies for heating. At the same time, Ukraine’s district heating systems are outdated and not very energy efficient. They also produce high CO2 emissions. Municipal district heating companies often have debt and are therefore frequently unable to modernise their district heating systems.

Objective

A national district heating strategy has been developed and contributes to reducing CO2 in Ukraine's heating sector.

Approach

The project supports the Ministry of Communities, Territories and Infrastructure Development of Ukraine in developing a national district heating strategy. It provides advice on adapting the legal framework. In addition, it offers support in piloting adapted business models for municipal district heating companies, including district heating tariffs that cover costs and are socially responsible.

Last update: October 2023