Dis­trict heat­ing (DH) is an impor­tant pil­lar of basic sup­ply in Ukraine. How­ev­er, dis­trict heat­ing sys­tems are out­dat­ed, not ener­gy effi­cient and cause high CO2 emis­sions. Munic­i­pal dis­trict heat­ing com­pa­nies are most­ly in debt and can­not invest in the mod­erni­sa­tion of their dis­trict heat­ing sys­tems.

The project sup­ports the devel­op­ment of a nation­al renew­able ener­gy strat­e­gy and the adap­ta­tion of the legal frame­work, as well as the pilot imple­men­ta­tion of adapt­ed busi­ness mod­els for munic­i­pal renew­able ener­gy com­pa­nies, includ­ing cost-cov­er­ing, social­ly com­pen­sat­ed dis­trict heat­ing tar­iffs.

The project devel­ops cli­mate-friend­ly munic­i­pal ener­gy plans with select­ed munic­i­pal­i­ties. They are advised on how to imple­ment planned mea­sures to increase ener­gy effi­cien­cy and reduce CO2 emis­sions from their DH-sys­tems. The expe­ri­ence gained will be made avail­able to all munic­i­pal DH-com­pa­nies. The project thus pro­vides impor­tant impuls­es for the reform of the Ukrain­ian DH-sec­tor.