To be eligible for funding, the demonstration projects must comply with the following criteria.

The project owner must:

  • be a public organisation, owned by the state, region or municipality;
  • have the required debt-servicing capacity;
  • have the required resources to fund 15% of the total project cost;
  • be able to provide a guarantee covering a loan of EUR 500,000;
  • have the institutional capacity to prepare, plan and implement an internationally- financed capital investment project;
  • accept and be prepared to apply state-of-the-art technology requirements and design principles and conduct procurements according to NEFCO Procurement Guidelines;
  • be prepared to report to the funding agencies and disseminate information on results and achievements of the demonstration project.

The demonstration projects must:

  • be built on well-known and proven district heating technology;
  • be cost efficient;
  • be affordable and not have negative impact on vulnerable consumers;
  • increase energy efficiency, with minimum 30% reduction of energy consumption;
  • be environmentally sustainable;
  • be financially viable, with payback period for the total project cost of maximum eight (8) years;
  • be innovative and have the potential to serve as a demonstration project and example of best practice, developed on the basis of state-of-the-art technology requirements and design principles;
  • be replicable.


As of 2019, the DemoUkrainaDH programme is no longer inviting applications for new projects. Please read more about the programme’s contribution to the modernisation of district heating systems in several Ukrainian cities here.


Donors and financiers


Nordic Environment Finance Corporation




Eastern Europe Energy Efficiency and Environment Partnership

Programme consultants


Project management consultant for the programme


Coordination consultant for the programme