Vinnytsia pays off its loan for the DemoUkrainaDH project and continues its cooperation with Nefco within SUDH

Published: 2021-03-18    Last Updated: 2021-06-23

The DemoUkrainaDH project in Vinnytsia was implemented during 2014 after a very effective project preparation stage. The demonstration project introduced demand-driven heat supply to customers by installing 11 individual heat substations (IHS) with connection to SCADA, and reduced losses by replacing 1500 m of DH pipelines in the project area. The reduced losses combined with more accurate consumption patterns of end customers resulted in a reduction in heating demand sufficient to close down an old inefficient boiler house. As a result, the project led to gas savings of 425,000 m³ per year, the equivalent of 820 tonnes less CO2 emitted each year since the project implementation. Through the competitive tendering process, two Ukrainian companies were selected to implement the project.

An investment of EUR 680,000 was required to implement the project. This was seen as an attractive proposition, as the estimated payback was 5 years. A grant line of EUR 290,000  and loan line of EUR 290,000 were attracted via the DemoUkrainaDH programme, combined with EUR 100,000 of the city’s own financing. The city of Vinnytsia is the first city to successfully implement the project within DemoUkrainaDH according to the agreed schedules. In the beginning of 2021, Vinnytsia submitted the final instalment of its repayments for the Nefco loan it received for the project. In doing so, Vinnytsia joins Olexandria in having fulfilled its loan obligations for the DemoUkrainaDH project.

“Implementation of projects supported by NEFCO is the best example of an integrated approach to energy efficiency measures, bringing district heating systems to the highest levels of energy efficiency, thereby increasing comfort of the residents and demonstrating European approach and openness to international cooperation” – says director of the district heating company, Mr. Maksym Bilyk.

Given the positive cooperation and project results achieved within DemoUkrainaDH, Vinnytsia and Nefco are continuing their cooperation within the SUDH programme. The feasibility study phase for a new project to interconnect the district heating network and install a new biomass boiler has been completed and approved by the Nefco Board of Directors, as well as by Vinnytsia DH Company and Vinnytsia City Council for entering the pre-implementation phase.

Read more about the DemoUkrainaDH project in Vinnytsia here.

Read more about the SUDH project in Vinnytsia here.