To improve district heating services across Ukraine, ESP works with governments, municipalities, and utilities to upgrade infrastructure, boost efficiency, reduce gas consumption, and drive down costs for consumers.
A stronger and more transparent district heating sector will attract investment and promote EU integration.
Understanding District Heating
Most of Ukraine’s residential areas have mixed heat supply schemes, which may include loop, radial, autonomous and individual systems. In most cities, these services are provided by public utilities (natural monopolies). Much of the infrastructure is aging and inefficient, which results in low service quality, high energy losses and high maintenance costs. The tariffs residents pay for these services do not cover the actual costs of the utilities. Moreover, to prevent prices from increasing, tariff structures do not take investment needs into account. As a result, public heat utilities need financial aid from local governments and are accumulating debt owed to the national oil and gas company Naftogaz for natural gas supply.
ESP is helping the national government reform the sector’s legal and regulatory framework, assisting local governments to prepare heat supply schemes and energy sector development programs, reforming heat production and supply facilities, and identifying actions public utilities can take to improve their technical and financial performance. Improving energy efficiency in district heating will attract more investment and help consumers save money from lower energy consumption and losses.