Ukraine: From gas to renewables district heating in Kiev

Benefits

  • Reducing heat consumption per year by  36%
  • Reducing gas consumption per year by 81%
  • Reducing  CO2 emissions per year by 63%

Challenge

Kiev is the capital and most populous city of Ukraine. It is also the seventh most populated city in Europe.

The city’s district heating systems provides most of the heat and hot water for households as well as steam for industry, produced in combined heat and power (CHP) or in heat-only boiler (HOB) plants. Its capacity of about 13,000 Gcal/h is almost entirely supplied by natural gas burned in 804 different heat sources and networks totalling 2,300 km in lenght.

Moving away from gas and getting more renewable energy sources in the district heating system is a big challenge.

Summary

The DemoUkrainaDH project proposes the disconnection of the local network from the existing boiler house, located approximately 800 m from the central substation (CHS) and to convert the CHS to a local production unit with a bio-fuel boiler for base load production and gas boiler for peak load. The existing local distribution network will be replaced with a modern design network and all buildings will be connected to the network via individual heating substations. The investment will reduce the use of fossil fuels in the system and enable the possibility to operate the district heating system as a fully demand driven and modern system.

The investments include:

  1. Installation of a new biomass boiler (1×1.0 MW) and peak/reserve gas boilers in the former central heating substation
  2. Introduction of 22 individual heat substations
  3. Network replacement of approx. 1,500 m in length.

Finance

The proposed investment is EUR 931,000 with a simple pay-back time of 6.4 years. The proposed financing plan is as follows:

  • Total loan – EUR 451,000 (49%)
  • Total grant – EUR 300,000 (32%)
  • Total Kyiv local contribution – EUR 180,000 (19%)

The donors financially contributing to the project are the Nordic Environment Finance Corporation (NEFCO) and the Swedish government agency (SIDA).

Results

The project has a valuable demonstration impact, as the installation of a biofuel boiler will dramatically reduce the use of fossil fuels. By the introduction of individual heating systems, the system is also converted towards a more sustainable demand driven system, in which future energy efficiency measures on customer level can be implemented and which will increase the quality of heat delivery to the connected buildings.

Once implemented, the project is expected to benefit the local community by:

  • Saving 7,490 MWh heat per year (36% saving from the baseline)
  • Saving 1,780 000 m³ gas per year (81% saving from the baseline)
  • Saving 2,655 tonnes CO2 per year (63% saving from the baseline)

Next steps

The project is currently in the stage of receiving all the necessary approvals in preparation for its implementation. Once these are acquired, the project will be implemented.