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.
Learning from the experiences of the DemoUkrainaDH demonstration projects
The seminar was organized in cooperation with Interbranch Association Ukrteplokomunenergo and aimed for district heating companies and stakeholders in the western part of Ukraine. It is intended to organize a second DemoUkrainaDH Lessons Learned Seminar in autumn in the eastern part of Ukraine. The objectives of the seminars are to share experiences with respect to development and implementation of the DemoUkrainaDH demonstration projects in the Ukrainian district heating context.
During the morning session of the seminar in Kamyanets-Podilskiy the district heating companies of the hosting city, Vinnytsia, Zhytomyr, Ivano Frankivsk, Chernivtsi and Ternopil presented their experiences with developing a DemoUkrainaDH project. They addressed a variety of topics, like the impact of the project on operational results, customers’ reactions on the project and customer satisfaction, experiences with tendering and procurement, according to international procedures, the challenges they met during implementation. The most striking observations reported were increased customer satisfaction, especially with respect to improved supply of domestic hot water and the highly valued technical assistance support.
Challenges in the Ukrainian district heating sector
Make it simple and save money!
The second part of the seminar was dedicated to the challenges in the Ukrainian district heating sector. Nickolai Zhechkov of Dalsia Brunata, representing experiences of suppliers, pleaded for expulsion of outdated norms irrelevant for modern technologies, and working with simpler designs which are at present unnecessarily complicated in Ukraine. Several other measures, like replacement of black steel pipes by polypropylene piping, reduction of the number of valves, using standardized schemes and components could cut back costs for the district heating companies dramatically.
Join forces, and learn from each other!
Peter Dannbring, the project management consultant supporting the many DemoUkrainaDH projects, addressed also the challenges for the Ukrainian district heating companies. He emphasized the importance of optimization of installations, applying the right size of installations and components and illustrated how efficiency improves by avoiding oversizing, The district heating companies should also choose for quality instead of choosing for lowest price, typically implying bad quality. E.g. pipes should lay 50 years and should not already need repair after 5 years. He acknowledged that current Ukrainian norms impede modernization in district heating systems, but appealed also to district heating companies to join forces and to build their own knowledge base, to develop their own test cases, to allow themselves to make mistakes and to learn from these mistakes and to share information about test cases. Present European norms, he stated, are far less detailed but describe the essence related to safety and quality. Based on this, guidelines and specifications are developed in practice by the district heating business themselves, often in cooperation between manufacturers, suppliers and district heating companies.
Solutions, ideas and opportunities for the future
Anders Ottoson of district heating company Öresundskraft from Sweden took the lead in the final part of the seminar with a presentation about the work of the Swedish District Heating Association (since 2016 named Sweden Energy). He revealed how during more than 60 years the association became the leading district heating institute, in which 400 member companies in production, distribution and retail of district heating, cooling and electricity cooperate. Financed by its members’ fees it is involved in technical, political, legal, environmental and energy market issues and in communication. Working groups in which member specialists and suppliers cooperate develop technical guidelines with respect to for example heat & power CHP, distribution, substations and measurement, standardization work and certification. Research, systematic experience sharing and providing training are core activities of the association. In short, Sweden Energy provides advice and training, network activities, review and political influence, business data and research, trends and analysis for its members. In the discussion afterwards it was concluded that the way Swedish Energy works could inspire cooperation between Ukrainian district heating companies at several points, although the present institutional framework in which the Ukrainian association has to operate prevents operating in the same way, as Arsentey Blashuk, president of Interbranch Association Ukrteplokomunenergo stated.
Reducing consumption of fossil fuels in Ukraine
Roman Maretsky of the State Agency of Energy Efficiency and Energy Saving in Ukraine explained all the present regulations and credit schemes in place to stimulate, people, condominiums and companies to adopt energy saving measures and use of alternative energy sources.
Finally Ronny Nilsson of NEFCO outlined prospects of NEFCO to develop new credit schemes for funding ‘DemoUkrainaDH-like’ projects, but then on a bigger scale. However potential project ideas would have to meet several criteria which at present would be difficult to meet in Ukraine. Therefor development of a new suitable credit scheme will take time, but, as Ronny Nilsson concluded, NEFCO has the ambition to continue with providing opportunities to develop district heating in Ukraine.
Presentations made during the seminar are available in the folder DemoUkrainaDH Lessons Learned Seminar May 2017 on our website in the download section.
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).
More energy efficiency demonstration projects in District Heating can be started in Ukraine
Since DemoUkrainaDH Programme has launched the Second Call for Applications in December 2013 several applications for demonstration projects in Ukrainian District Heating sector have been received. It is still possible to apply to the programme. Until May 2014 on the basis of Applications submitted, additional project partners will be selected. Only publicly owned District Heating Companies in Ukraine can be selected as project partners. All relevant information with respect to application can be found on the website of DemoUkrainaDH Programme (demo-dh.org.ua).
On 15 October 2013 the Ukrainian cities of Vinnytsia and Zhytomyr have signed loan agreements with NEFCO to finance investments in municipal energy efficiency projects. It were the first loan agreements signed in the framework of funding facility DemoUkrainaDH, which is supported by E5P.The agreements were signed at the Ministry of Regional Development, Construction and Municipal Economy of Ukraine.
The projects in Vinnytsia and Zhytomyr will focus on the installation of individual heating substations, heat pumps and new condensation boilers. Furthermore, the district heating piping network will be replaced with new insulated pipes to minimise heat losses. The municipalities will save almost 700,000 cubic metres of gas annually and this in turn will generate savings of some EUR 312,000 per year as a result of reduced consumption of heating energy. Carbon dioxide emissions will be expected to be reduced by nearly 1,200 tonnes per year. “We are very pleased that the projects in Vinnytsia and Zhytomyr are moving forward and we hope that this will inspire other cities to follow their example”, says Senior Adviser Johan Willert from NEFCO.
By the end of August 2013 the demonstration projects in the cities of Donetsk, Kamyanets-Podilsky, Alexandria, Ivano-Frankivsk, Severodonetsk and Poltava have been approved for funding by NEFCO’s investment committee. The projects in Zhytomyr and Vinnytsia had already been approved by the end of 2012. In total seven demonstration projects out of ten have now entered the implementation phase. All projects will be realized before the start of the heating season in October 2014.
Modernization of district heating systems; substantial savings on gas consumption through decreased losses and demand driven systems
All the demonstration projects are designed to reduce losses and convert the systems to a demand driven operation, where the delivered heat comply to the demand of the costumers. The projects typically include measures to phase out central district heating substations and four pipe systems in favour for building level individual district heating substations, resulting in a two pipe system with control of supply temperature in relation to outdoor temperature and preparation of hot water on building level. The expected savings on gas consumption after the seven projects have been realized will amount to slightly less than four million cubic meters per year. More information about the demonstration projects can be found on demo-dh.org.ua in the section Demo Project Cities.
Interview with Oleg Pizniak and Vasyl Brovarnyk, Vinnytsya – February 2013
Demo projects improve the systems and increase institutional capacity of the district heating companies in Ukraine
More than a year ago DemoUkrainaDH funding facility was launched. Now the first projects of the ten selected ones are arriving at the stage of implementation. Vinnytsya is one of the cities with the most progress in the development of a DemoUkrainaDH project. We had an interview with Oleg Pizniak, managing director of "Vinnitsamiskteploenergo” and Vasyl Brovarnyk - Director of the Department of Municipal Economy of the City Council in order to learn from their experiences with DemoUkrainaDH till now. The day of the interview is an important one, because the documents for the municipal guarantee for the demo project have to be approved by the city council. But Brovarnyk and Pizniak are confident. Till now the project develops according to schedule.Read more...
By the end of 2012 the demo projects of Vinnytsia and Zhytomyr have been approved for funding by DemoUkrainaDH. This happened on the basis of the business plans that the district heating companies "Zhytomyrteplokomunenergo" and "Vinnitsamiskteploenergo" developed with support of the Project Management Consultant. The projects are entering now the implementation phase. Calls for Proposals can be expected by the end of February/beginning of March 2013. It is expected that the projects will be implemented no later than Octobre 2013. [Read more] about these projects in the section Demo Project Cities of the website.
The Vinnytsia PIU team and the project management consultant discussing the next step:
the implementation phase of the project (January 2013)
From November 6-9, 2012 the International Exhibition Center in Kiev was the venue of the VIII International Congress: Institutional and Technical Aspects of the Housing Reform. During this congress it was announced that DemoUkrainaDH will be extended.Read more...
On 31 August 2012 the Evaluation and Monitoring Committee (EMC) of funding facility DemoUkrainaDH selected three Ukrainian district heating companies for developing energy efficiency demonstration projects. The selected municipal district heating companies are operating in Kriyviy Rig (Dnepropetrovsk Oblast), Poltava (Poltava Oblast) and Severodonetsk (Lugansk Oblast).Read more...
June 2012 ǺF-Industry AB from Sweden has, as result of a tender, been selected as Project Management Consultant (PMC) for DemoUkrainaDH. The PMC will support selected project partners with Technical Assistance. The Technical Assistance is intended to support the project partners to develop their ideas for demonstration projects to sound project plans that fulfill the DemoUkrainaDH project criteria. Present project partners in DemoUkrainaDH are district heating companies from Donetsk, Ivano-Frankivsk, Vinnytsia, Zhytomyr, Kamenets-Podilskyi, Kiev and Alexandria.
Á core expert team complemented with several other experts of ǺF-Industry will assist the project partners with the preparation and implementation of the projects. Visit www.afconsult.com for more information about ǺF-Industry AB.
On 21 May 2012 the Evaluation and Monitoring Committee (EMC) of funding facility DemoUkrainaDH selected again three Ukrainian district heating companies for developing energy efficiency demonstration projects.Read more...
On 29 March 2012 the Evaluation and Monitoring Committee (EMC) of funding facility DemoUkrainaDH selected four Ukrainian district heating companies for developing energy efficiency demonstration projects as a result of the first application phase for the facility. The selected municipal district heating companies are operating in Donetsk, Ivano-Frankivsk, Vinnytsia and Zhytomyr.Read more...
After a period of preparatory work by NEFCO, Sida and the Ministry of Regional Development, Construction and Municipal Economy in Ukraine a project coordination team of Grontmij AB Sweden by mid-January 2012 could start