After the business plan having been approved by NEFCO, the DemoUkrainaDH project in Starokostiantyniv will enter the implementation phase. Preparations for tendering have been initiated. The same is the case for the project in Pavlohrad.
The city Starokostiantyniv, with a population of about 35,000 is situated in the Khmelnytska Oblast in the Western part of Ukraine. Municipal DH company «Teplovyk» of Starokostiantyniv City Council intends to interconnect three local distribution systems and to modernize one of the local production plants with a bio fuel (wood pellets) boiler for base load production and a gas boiler for peak load. The other two existing boiler houses can thereby be closed down and the 4-pipe distribution networks will be converted into an interconnected 2-pipe system. All buildings supplied with Domestic Hot Water (DHW) from the DH system will be connected to the network via Individual Heating Substations.
The investment will reduce the use of fossil fuels in the system and enable the possibility to operate the DH system almost as a fully demand driven and modern system.The expected gas savings will be about 20,000 MWh/y.
DemoUkrainaDH Seminar in PoltavaDemoUkrainaDH Seminar in Poltava
Threads for the Ukrainian District Heating sector, but also new opportunities
Around 100 representatives of district heating companies, municipalities, regions (oblasts) and other stakeholders in the Ukrainian district heating sector attended the DemoUkrainaDH Seminar on 19th of September 2018 in Business Center’ Cuchasniy Dim’ in Poltava.
During the morning program representatives of district heating companies of Ternopil, Chernivtsi, Myrgorod, Kamyanets-Podilskiy and Poltava shared their experiences with the implementation of their DemoUkrainaDH funded projects, completed and not yet completed.
Opening of the seminar by the Deputy Chairman of Poltava Oblast Administration,
Mr. Oleg Pruglo, second from the right
Future of district heating at stake?
Modernization and reforming of the Ukrainian heating sector is urgently needed, with the proper maintenance of district heating systems as one of the key elements. Therefore, projects and initiatives constituting the gateway for the investments in DH systems are much essential and welcome. At the same time impediments to realize upgrading of the systems are popping up, mostly institutional of character. One of the typical examples of these hindrances is the question of ownership of Individual Heating Substations (IHSs). IHSs are considered as crucial for the development of energy efficient district heating systems and at the same time have to be installed mostly in the basements of
apartment buildings, owned by condominiums or other parties. Ways how to share responsibilities for IHS maintenance and operation were discussed.
Another topic of discussion was the Government Heat Sector Development Action Plan recently adopted (May 2018). The advantages of district heating are paramount: District heating offers prospects for energy saving, reduction of greenhouse gas emissions and flexibility in the use of fuels, like renewables and waste heat. These advantages and considering that the infrastructure already exists, make district heating the most preferred heating option for densely populated areas in Ukraine. From the discussion it appeared, that it is still in question, whether this Plan takes these advantages sufficiently in account in relation to other individual heating options, such as electric heating and individual gas heaters in apartments. At least it happens nowadays that cities, often based on not transparent and economically not justified reasons, choose for different modes of operation of heat production and supply (e.g. individual heating based on electric boilers), which is according to the common opinion of the experts present at the seminar, a precarious and risky adventure with an uncertain future.
New Funding opportunities for modernizations of district heating systems
After Anders Lund, E5P Fund Manager, having outlined the conditions under which international donors will be ready to finance district heating projects in Ukraine, Ronny Nilsson, NEFCO Senior Advisor, announced and briefly described a new funding program for modernization of district heating projects, facilitated by the Swedish Government and NEFCO. While the ongoing DemoUkrainaDH programme is focusing on small-scale demonstration projects having already shown significant savings in the production, distribution, and consumption of energy and water, the new programme will provide funding for bigger projects that make a real difference for Ukrainian district heating companies and the Ukrainian district heating sector as a whole.
Several presentations made during the seminar are available in the Download section of our website.
July 2018 – The Business Plan for the DemoUkrainaDh demonstration project of Municipal Company “Pavlohradteploenerho” has been approved. The proposed project involves connection of the 4th City Hospital to a larger District Heating system. For the preparation of domestic hot water solar panels will be installed on the roof. Furthermore, a remotely located residential area will be disconnected and instead a local biomass boiler will be installed, using gas for peak and reserve purposes. Piping network will be partially replaced. These investments will dramatically reduce the use of fossil fuels in the system.
On October 20, 2017 Myrgorod Teploenergo started local selective tender procedure to choose a contractor from the Ukrainian companies, which have experience to design and install IHS based on the best European practices as well as experience in projects similar to DemoUkrainaDH
More than 100 representatives of district heating companies, municipalities, oblasts and other stakeholders in the Ukrainian district heating sector attended the first DemoUkrainaDH Lessons Learned Seminar on 31th of May in the City Hall in Kamyanets-Podilskiy. Information about DemoUkrainaDH funded projects, completed and not completed, was shared and the challenges in Ukrainian district heating were discussed.
Representatives of the projects explained the positive results of the projects, not only in terms of improved operations or energy savings, but also with respect to the companies’ operations. However, also the problems with the present complicated institutional framework that the Ukrainian district heating companies have to cope and struggle with, had a prominent place in the discussions.
The DemoUkrainaDH programme has an unambiguously stated objective to demonstrate modern and energy efficient District Heating technology and design criteria, based on Nordic experience, in the Ukrainian District Heating context.
In order to comply with this purpose a number of services from the pipeline suppliers are required for securing that design principles and technological improvements are maintained during implementation of the demonstration projects. These services, the “soft components” in the project, are training and review during design and training and supervision during installation.
Justified on demand for suppliers’ experience and professionalism a pre-qualification of suppliers has taken place among suppliers with a full product range, including twin pipes, having their products certified by Euroheat (the European District Heating Association). The pre-qualified suppliers are Logstor A/S (Denmark), SIA Poliurs (Latvia) and Brugg AG (Germany).
On Wednesday 31 May a regional DemoUkrainaDH Lessons Learned Seminar will be organized in cooperation with Branch Association Ukrteplokomunenergo.K-P castleThis seminar, which will take place in Kamyanets-Podilsky, is meant for representatives of district heating companies and authorities in the western part of Ukraine and other stakeholders in Ukrainian district heating sector. The intention is to organize in autumn a second seminar more to the east of Ukraine.
The objective of the seminar is to share experiences about completed projects and projects under implementation, to discuss problems with modernization of the Ukrainian district heating systems, to discuss how the modernized systems could be operated in a sustainable way and to provide information about possible new funding opportunities.
DemoUkrainaDH projects in Ternopil, Chernivtsi, Konotop and Myrgorod have been ready for implementation since early spring 2016, but been prevented from progress due to amended approval procedures for municipal guarantees by Ministry of Finance of Ukraine. From August 2016 these obstacles have been removed by the Ukrainian Government, however too late to allow for project implementation before the start of the heating season.
Now applications for approval for all projects are subject to assessment by Ministry of Finance and hopefully the municipal guarantees can be issued before the end of the year, allowing for signing of financing agreements 2016 and project implementation during 2017.
During the meeting of the DemoUkrainaDH Evaluation and Monitoring Committee on 2 February 2016 two new project partners were selected for developing a demonstrations projects within the framework of the DemoUkrainaDH program. The new project partners are the Municipal Company “Teplomerezhi” in Kamyanske (Dnipropetrovsk Oblast) and the Municipal Enterprise “Pavlogradteploenergo” in Pavlograd (Dnipropetrovsk Oblast). After having successfully developed a demonstration project in Poltava, it was approved that Municipal Enterprise “Poltavateploenergo” could develop a second demonstration project
During 2015 five demonstration projects funded by DemoUkraineaDH Program have been completed. Since completion of the project in Vinnytsia in spring, also the benefits of the projects in Zhytomyr, Kamyanets-Podilskyi, Alexandria, and Poltava can be utilized. Energy savings in all projects are at least 30 % compared to the situation before project implementation. The project in Ivano-Frankivsk is expected to be completed in early spring 2016. Three other projects are ready for implementation after completion of Business Plan preparation and approval by the DemoUkrainaDH Evaluation and Monitoring Committee and by NEFCO's Investment Committee.These are the projects in Chernivtsi, Ternopil and Konotop. The implemetation of all the three projects is directed on project completion before the start of the heating season 2016/17.
During the meeting of the DemoUkrainaDH Evaluation and Monitoring Committee on 22 April 2015 two new project partners were selected for developing a demonstration project within the framework of the DemoUkrainaDH program. The new project partners are the Municipal Company “Komenergoservice” in Dnipropetrovsk and the Municipal Enterprise “Myrgorodteploenergo in Myrgorod (Poltava Oblast).
Several DemoUkrainaDH projects are now under full implementation. The projects in the cities of Kamyanets-Podilskyi, Alexandria, Zhytomyr, Ivano-Frankivsk and Poltava will be completed before the start of the heating season 2015/2016. From then on these cities will profit from the energy efficiency and modernization measures realized.
In end of 2014 the cities of Ivano-Frankivsk and Poltava signed both financing agreements with NEFCO with respect to the DemoUkrainaDH demonstration projects. Financing agreements have been signed now for all DemoUkrainaDH projects that have their municipal guarantees approved by the Ministry of Finance of Ukraine.