The District Heating Energy Efficiency Project

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The objective of the District Heating Energy Efficiency Project is to improve the energy efficiency and quality of service of selected Ukrainian DH companies, improve their financial viability and decrease their CO2 emissions. There are two components to the project, the first component being energy efficiency investments. This component will increase the efficiency of participating utilities, reduce their costs, enhance the reliability of their services, and improve the quality of heat supply. This component will cover: rehabilitation of boiler houses; closure of redundant boiler houses; installation of mini-CHPs; replacement of network pipes; installation of IHSs in buildings; installation of building-level heat meters; installation of SCADA management systems to optimize the heat production and supply of participating DH companies; and related energy efficiency investments implementation costs (implementation support, including consumer outreach) to the participating companies. Component one includes Clean Technology Fund (CTF) co-financing that will cover installation of IHSs and building-level heat meters. The second component is the technical assistance and capacity building. Component two will finance technical assistance to Minregion, which will oversee project implementation, to support: establishment of the Central Project Management Unit (CPMU), training and technical assistance; supervision of project implementation, guidance and training in project implementation, monitoring, and evaluation to the participating DH companies; capacity building and knowledge-sharing workshops for the participating DH companies; sector-wide knowledge sharing and project results dissemination workshops; surveys among the participating DH companies' customers; preparation of consolidated annual project audits; preparation of required studies related to the project; and financing of incremental operating costs.