Investments in district heating

Myrhorod DH system modernisation

The city of Myrhorod in Central Ukraine has some 40,000 inhabitants. The local city administration has together with the municipal energy company Myrhorodteploenergo initiated a project aimed at reducing energy consumption and upgrading the distribution system for the heat supply. The project is implemented as part of the DemoUkrainaDH programme and co-financed by NEFCO, Sweden and Eastern Europe Energy Efficiency and Environment Partnership (E5P).

Within this DemoUkraina project a new technology of DH networks modernisation was tested in Ukraine.

The project included three components. Two modern condensing boilers were installed in the heat generation plant, the heating network was replaced and individual heating substations installed. This resulted in decrease of heat losses by 60% and reduction of natural gas consumption by 32%. Eventually, the consumers could save around 10% from the installation of IHSs, as the heat consumption was reduced due to regulation of the heat supply in accordance with the outdoor temperature.

Total cost of the demonstration project in Myrhorod is EUR 675,000, financed by a E5P grant of EUR 275,000, a NEFCO loan of EUR 290,000 and a contribution from the local budget in the amount of EUR 110,000.

As a result, Myrhorod will get not only a modern DH system, but also EUR 100,000 per year savings due to efficiency improvement and reduction of heat losses

Case summary

Customer Myrhorodteploenergo
Time of project 2016
Sector district heating
Segment Public
Geographical area Ukraine
Total investment EUR 290,000
Type of financing Loan
Financed by NEFCO
SDG targets
SDG 7 Affordable and clean energySDG 13 Climate action

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