Ukraine has a well-developed district heating sector in terms of geographical coverage, but it requires significant investment in modernisation of generation capacities and networks to increase efficiency and reliability of operations.
Overall there are over 1000 heat supplying companies in Ukraine, and centralised heat supply covers 40% of the population. Most multi-apartment buildings and some private buildings in cities and towns are connected to district heating networks with a total length of about 21 000 km. Natural gas is the main fuel for district heating. However, there is an increasing number of examples of using biomass for heat energy generation.
DHS operators face intense competition for customers base, as during the last decade there was a tendency of natural gas-fired boilers installation in individual apartments in existing multi-apartment buildings connected to district heating systems, while newly constructed multi-apartment buildings are often equipped with individual natural gas-fired boilers or decentralised heating solutions.
The energy strategy of Ukraine foresees the development of heat supply systems taking into account the economic feasibility of locally available fuel types, regional and national energy infrastructure, as well as increased efficiency of heat supply. Investment requirements in district heating sector is estimated at about 10 billion USD, while the potential for resulting natural gas savings is 4.1 billion cubic meter per annum. The goals of state policy implementation in the area of heat supply include achieving a 40% share of alternative energy sources and reducing energy losses to 10% before 2035.
KeepWarm is an EU-funded project whose objective is to accelerate cost-effective investments in the modernisation of District Heating Systems (DHS). It brings together eleven project partners from a variety of relevant sectors (energy agencies, national DHS associations, agricultural chambers, research institutes, consultancies on energy efficiency and NGOs) across Central and Eastern Europe.
The aim of the initiative, launched in April 2018, is to modernise DHS around the whole region and reduce greenhouse gas emissions by improving system operations and promoting a switch to less-polluting sources, like renewables. The project partners strive to ensure that best practices for environmental-friendlier heating and cooling will be taken up across Europe, replicating KeepWarm’s approach in other countries and regions, even beyond the end of the project in September 2020.
In Ukraine, the project is supported by the State Agency on Energy Efficiency and Energy Savingss and involves the heat supply companies of the cities of Zhytomyr, Khmelnytskyi, Ternopil and Bila Tserkva.
KT-Energy LLC is KeepWarm's project partner in Ukraine. KT-Energy LLC provides consultancy and project development services in the areas of power, energy efficiency, and carbon emission reduction projects since 2010.