The project will furthermore support a better control over en- ergy consumption through the installation of a new central remote-control system, and 25,000 citizens will benefit from affordable DH heating bills while at the same time gaining ac- cess to a more sustainable DH infrastructure. International support plays an important role. Ukraine needs immediate actions and financial support to mitigate the DH sector’s operational gaps and emergency maintenance. But due high cost of finance in Ukraine and the DH companies’ difficult economic situation, donor support for implementing energy efficiency measures is often the best or only opportunity for financing rehabilitation investments. Such donors include international financing institutions (IFI), such as the European Investments Bank (EIB), the World Bank Group, KfW, the international project and export finance bank, NEFCO, and the European Bank for Reconstruction and Devel- opment (EBRD). The new electricity market model and more international fi- nancing, with lower requirements for grantees of repayment to rehabilitate the DH system, together can make the green transition of the Ukrainian energy system possible.
The total investment for the project is EUR 12.7 million, com- prising a EUR 4.45 million grant from DSIF, financed by the Ministry of Foreign Affairs in Denmark, and a EUR 6 million loan from NEFCO. The city’s contribution is approx. EUR 2.25 million. Ramboll has contributed to the project by preparing the feasibility study for DSIF to ensure the loan and grant and outlining the technical, environmental, and financial evalua- tion of the project. Throughout the next two years, the project will be realized through the development of technical specifications, tender documents, contractor procurements, and construction su- pervision. Among the systemic improvements is an installation of a 4 MW biomass boiler with thermal storage, new gas boilers, replace- ment of DH pipes, and 122 new individual heat substations. This project will introduce two new concepts to Ukraine based on Danish experience. The rehabilitation of a whole city district will provide the opportunity to introduce variable flow supply driven by demand instead of the typical generation supply. Additionally, thermal storage is to be included, demonstrat- ing the benefits when optimizing biomass plant utilization. We expect the project to significantly reduce CO2 emissions by 10,500 tons while also demonstrating modern approaches utilized in Scandinavia.
For further information please contact: Mathilde Johanne Cordua, mjca@ramboll.com Ivan Zhuchenko, iz@ramboll.kiev.ua
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