An agreement between the European Bank for Reconstruction and Development and the city of Kyiv on providing the Ukrainian capital with a Euro 140 million loan to modernize its heat supply infrastructure and optimize business processes of CU “Kyivteploenergo” (KTE) was signed on Thursday, September 2, 2021 at the CHP-5 site in Kyiv.
James Hope, USAID Mission Director in Ukraine, stressed in his welcoming remarks that the EBRD loan was made possible, among other things, by the operational and management reforms at Kyivteploenergo, in preparation for which the USAID Energy Security Project provided the necessary technical assistance. “This loan is also the result of three years of preparatory work, during which the Energy Security Project worked with Kyivteploenergo to modernize the operating activities of the utility, financial control systems and to strengthen technical capabilities. Today, Kyivteploenergo has better opportunities to plan long-term strategic investments in its infrastructure and provide more stable and reliable heat supply for one million households in Kyiv,” said James Hope.
For his part, Kyiv Mayor Vitalii Klychko stated: “Today, we have signed a loan agreement for the modernization of the heat and power complex, which will allow the introduction of modern approaches and technologies in the capital’s district heating system. Implementation of the program will help increase energy efficiency, reduce energy consumption – natural gas, electricity, and water. But the most important thing is that implementing large-scale modernization projects will improve the quality and reliability of services for Kyiv residents”.
EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone noted that this loan agreement is an example of practical cooperation between the EBRD, the city authorities, and international partners. In particular, he pointed out that the new equipment to be installed at CHP-5 and CHP-6 through credit funds will fully comply with the EU Directive on industrial emissions.
USAID ESP has funded the preparation of the utility for obtaining the loan, including three audits to confirm that KTE operates within the framework of the International Financial Reporting Standards.
In addition, the Project provides technical assistance with implementation of the SCADA Monitoring and Data Collection System, allowing to obtain information on performance indicators related to the quality and efficiency of distribution and supply, making the utility much more economical and resilient while improving customer satisfaction.
Furthermore, ESP ensured the development of technical design documentation for the installation of a condensing economizer at CHP-5, which resulted in a reduction of greenhouse gas emissions by 6.7%. Developed by the project a technical design documentation for the installation of heat storage tanks at CHP-6 allowed not to dispose of excess heat on the cooling tower and significantly increase the plant efficiency in transition periods and participate in balancing the electricity market without violating the heat curve.
USAID, via its Energy Security Project, helped CU “Kyivteploenergo” to develop projects to optimize heat supply schemes by switching consumers of 45 inefficient boiler houses to high-efficiency heat sources, which reduces greenhouse gas emissions by 2,448 t and saved 8.1 million m3 of gas and 5,700 MWh of electricity per year.
USAID supports the development of district heating systems in Ukraine as the most efficient and environmentally sustainable heat supply option for most of the country. As district heating reduces fuel imports and makes greater use of local resources, this project of modernization of CU “Kyivteploenergo” will contribute to strengthening Ukraine’s energy security and ecological resilience.