Why it matters to us
District heating (DH) is the most sustainable and reliable way to provide heat to a large number of consumers. Almost half of the heat consumed in Ukraine comes from centralized sources.
Today, the district heating system in Ukraine needs improvement: about half of the users are dissatisfied with the quality of services. Worn-out networks and outdated equipment make district heating less efficient and more expensive for consumers. Instead of updating the system, some cities are starting to abandon central heating, which poses risks to sustainable development.
However, by preserving and developing these systems, it is possible to reduce costs and ensure stable heat supply.
More about the problems with the district heating system in Ukraine, how they can be solved, and what municipal representatives, heat supply companies, and local residents can do to address these issues — we discuss below.
What is DH and how do its systems work?
District heating is a system that supplies heat to apartment buildings and other facilities through centralized heating networks. It is based on large boiler houses or other facilities that generate heat and a pipeline system that transports it to consumers. In Ukraine, district heating is mainly based on gas, and less often on coal or biomass.
Ukraine has a well-developed district heating system, with a complex and extensive system of heating networks and large amounts of generating capacity. However, most systems in communities have outdated boiler houses, inefficient heating networks, and significant energy losses. The state of the system is also affected by low tariffs for households, which make it difficult to invest in the renewal of the district heating infrastructure.
Problems and Ecoclub’s vision of how to solve them
| Problem | Solution |
| Aging heating networks (28% have been in service for more than 25 years) | Replacing existing pipes with new, pre-insulated ones |
| Outdated CHP equipment (60% of boiler equipment has reached its expected lifespan) | Modernization of boiler facilities and implementation of energy-efficient technologies |
| Significant heat losses in networks (up to 40%) | Pipeline insulation and the implementation of automated loss monitoring systems |
| Insufficient investment in industry development resulting from tariff policy | – Revised tariff policy aimed at encouraging investments in system development The creation and execution of new agreements between suppliers and consumers to promote energy efficiency initiatives and supplementary services. |
| Gas reliance | Development of renewable energy sources for district heating, such as heat pumps and biomass. |
The state of centralized heating in Ukraine: deterioration of equipment and heating networks
Heating networks in Ukrainian communities are sometimes 70-80% worn out.
More than 28% of them have been in operation for more than 25 years, 43% for more than 10 years, and only 29% for less than 10 years. Most of these networks do not meet modern energy efficiency requirements.
The equipment on the balance sheet of district heating companies is outdated. Some CHPPs operate turbine generators that are more than 70 years old. About 60% of the boiler equipment has already reached the end of its standard service life. In addition, their efficiency is much lower than modern ones.
This situation leads to heat losses in the networks, which average 13% and reach 40% in some regions. In particular, heat losses are as follows:
- in Kherson region – almost 40%.
- in Luhansk region – 35%
- in Lviv region – 26.4%.
- in Kyiv and Vinnytsia region – 23.8%
- in Chernihiv region – 22.9%.
Outdated equipment and high transportation losses make heat much more expensive for consumers.
Tariff policy and its impact
The tariff for heat supply in Ukraine for households has remained unchanged since the beginning of the war. And the price of gas, which makes up most of the cost of heat, is subsidized. So for many years now, users have not been paying the full cost of the heat they consume.
This tariff policy does not allow heating companies to invest in repairs, replacement of equipment, and upgrades. Therefore, heat and power companies are often subsidized from the local or state budget. This is only enough to maintain the system in its current state. Without a change in tariff policy, the quality of district heating will not improve significantly.
90% of heat energy for district heating is produced from natural gas, which accounts for approximately 67-85% of the heat tariff structure. Under these conditions, the district heating companies are not interested in investments in energy efficiency and modernization measures, as they make up a minimal share of the tariff.
What should be done to improve district heating systems?
To improve the quality of district heating services, a number of changes need to be implemented. Below are some tips on how local government officials, employees of heating companies, and community members can get involved.
What local governments can do
- Assessment and renovation of heating networks and boiler houses (jointly with the local heating company): communities should initiate an assessment of the condition of existing heating networks, identify priority facilities for renovation, and attract investments for modernization. Modernization should include the replacement of worn-out pipes with new, pre-insulated ones, which will significantly reduce heat losses.
- Create heat supply development plans: Communities should develop an individual plan for the development of district heating, taking into account its characteristics, access to resources and financing. Local governments should also consider the potential for using renewable energy sources.
- Attracting investments: LGEs should create conditions for attracting investment in the latest technologies, such as heat pumps, bioenergy plants, solar collectors, and others.
What a district heating company can do
- Regularly carry out maintenance and upgrade equipment: The company's employees should conduct regular maintenance and modernization of boiler houses, heating networks and pumping stations to improve efficiency and reduce heat losses.
- Implement modern energy-efficient technologies: For example, the use of heat pumps or biogas plants for heat production can significantly reduce energy costs while reducing greenhouse gas emissions.
- Develop services for the maintenance of in-building systems: Comprehensive maintenance of in-building networks can reduce heating costs.
What donors and partners can do
Donors and partners can support funding for district heating modernization projects. In particular, those that involve the introduction of renewable energy sources and energy-efficient technologies. What can be done:
- Fund district heating modernization projects: Donor support can help to replace worn-out pipelines and modernize boiler equipment.
- Support the introduction of renewable energy sources (RES): Establishing mechanisms for the introduction of renewable energy sources in heating systems will help reduce dependence on fossil fuels and lower energy costs.
- Support research and experience exchange: Donors and partners can fund research, analysis of best practices, and development of technical solutions for district heating modernization. This includes cooperation and knowledge sharing with district heating companies and municipalities in Europe and the United States.
What community members can do
- Support initiatives to modernize building heating systems: Together with HOAs and local authorities, residents can replace or upgrade outdated boilers, pipelines, radiators, or pumps to improve efficiency and reduce energy costs.
- Utilize in-building heating system maintenance services: Residents can use in-building heating system maintenance services to reduce their heating costs by choosing energy-efficient solutions offered by heating companies.
- Support initiatives for thermal modernization and insulation of buildings: Together with condominiums and local authorities, residents can implement projects to insulate apartment buildings and improve the energy efficiency of their homes. This reduces heating costs and keeps the premises warm.
What Ecoclub does and how to cooperate with us
Екоклуб активно працює над збереженням і розвитком систем централізованого теплопостачання в українських громадах. Протягом останніх років ми:
We developed 11 feasibility studies for the installation of heat pumps in four Ukrainian communities (Lutsk, Zvyagel, Khmelnytsky, and Kostopil)
The feasibility studies showed that:
- installation of air-to-water heat pumps in district heating systems does not require significant investments, except for the cost of the equipment itself. According to preliminary estimates, the payback period for individual projects can be achieved in 1.5 years;
- The use of heat pumps as the main source of hot water production during the non-heating season is particularly effective in our conditions. This will help to avoid future unprofitable heating of water from gas when heating is not needed;
- availability of waste heat sources, such as sewage collectors or pumping stations, allows the installation of high efficiency water-to-water heat pumps throughout the year;
- it is economically advantageous to use heat pumps for heating the heating system simultaneously with hot water supply. Using heat pumps for heating only has a much longer payback period.
Ecoclub will be happy to share technical documentation upon request.
We have developed model contracts for employees of district heating companies (DHCs)
These contracts will allow district heating operators to expand the range of services for consumers. Thanks to the new services, the DH companies will be able to make a profit from the implementation of energy efficiency measures.
We have prepared a manual for operators of heating companies
Ecoclub experts have developed a manual for heat and power operators, in which they explored opportunities to improve the district heating system. In particular, they analyzed the economic feasibility of implementing energy efficiency measures and providing services for the maintenance of the building heating system.
The analysis shows that
- heat supply operators can implement energy-efficient solutions and maintain the in-building heating system;
- maintenance of this system allows consumers to save heat energy;
- the cost of such maintenance is much lower than the cost of the saved heat;
- the savings can be shared between consumers and heat producers who have achieved such savings by maintaining the building heating system;
- energy efficiency measures can significantly save the use of fossil resources and increase consumer comfort.
We introduce Ukrainian communities to the best foreign practices of district heating development
Ecoclub organized a study tour for representatives of Ukrainian communities and managers of heat supply companies to municipalities in Germany and Poland that are actively developing district heating.
The experience of these countries allows us to learn how to achieve better energy efficiency and resource saving with minimal environmental impact.
Participants learned about the work of district heating companies, how they were modernized and switched to renewable energy sources, and tools for improving the quality of heat supply
Donors with whom Ecoclub cooperates
Ecoclub cooperates with a number of international organizations and donors that finance projects to modernize and preserve district heating in Ukraine. Among our partners are:
Contacts
To cooperate with Ecoclub in the development of district heating, send a letter with a proposal to the coordinator of the project Mykhailo Lukianyk, lukyanyk@ecoclubrivne.org.