Interconnection of two micro-districts into a joint district heating network

Location: Southeast part of Chernivtsi
Programme: DemoUkrainaDH
Project status: Implementation
Investment: 960,000 EUR
Payback period: 4.4 years
Reduced gas consumption: 1,130,000 m³/year


2,400 tonnes/year

Chernivtsi is an oblast centre in Ukraine, located 425 km to the southwest from Kyiv. Chernivtsi has 263,000 inhabitants and is an important administrative and cultural centre. The most developed industries in the city are food industry, light industry, mechanical engineering and woodworking.

The heat supply of Chernivtsi city includes centralised and individual heating systems. District heating is provided to residential buildings, public and commercial facilities. There is no domestic hot water supply from the centralised system in the city. The municipal company “ChernivtsiTeploKomunEnergo” is the only district heat supplier and covers the whole area of the city. The company operates 86 boiler houses with a total installed heat generation capacity of 500 Gcal/h, as well as about 100 km of district heating networks.

Chernivtsi Demonstration Project – overview

The proposed project involves interconnection of two micro-districts: Zalozetskogo and Saltykova-Schedrina (hereafter S. Schedrina). It also involves installation of a new pellet boiler at the existing boiler house Zalozetskogo. This makes it possible to decommission the old boiler house at S. Schedrina. The existing gas boilers at Zalozetskogo will serve as peak load boilers for the interconnected system.

The project is interesting from a demonstration point of view as it enables efficiency improvements in generation, distribution and use of district heating in line with the Ukrainian Energy Strategy 2030.

Replacement of distribution pipelines within S. Schedrina area, as well as and install 17 IHSs at all the buildings connected to this district heating network will further reduce the use of fossil fuels and will make it possible to operate the S. Schedrina part of the district heating system as a fully demand-driven and modern system. By replacing district heating pipelines, heat losses, water losses and maintenance costs are reduced and by replacing obsolete pipelines the quality of heat delivery will be increased.

Installation of a biofuel boiler will dramatically reduce the use of natural gas.

Chernivtsi Demonstration Project – details

The project area comprises the two micro-districts S. Schedrina and Zalozetskogo which are located southeast of the city centre which are supplied with heat from two separate boiler houses at the addresses: (1) 2nd Karmeliuka lane 6; and (2) Zalozetskogo str. 97-A. The first boiler house consists of 5 natural gas boilers with a capacity of 3.7 MW in total while the second boiler house consists of 4 modern gas boilers with a capacity of 4.0 MW in total.

The number of people living in Zalozetskogo and S. Schedrina areas supplied with district heating is approximately 2,500 and 2,000 respectively, thus modernisation affects a total of 4,500 people who will benefit from the improvements in their district heating system.

Figure 1: Map of Chernivtsi with the indication of the project area

Specifics of the Chernivtsi Project include:

  1. Installation of one biomass boiler (1×2.5MW) at Zalozetskogo.
  2. New network pipeline between S.Schedrina and Zalozetskogo – 500m district heating pipes.
  3. Network replacement – approx. 1,150m of district heating pipes within S.Schedrina.
  4. Individual Heat Substations – Introduction of 17 IHSs in S.Schedrina.
  5. Close down of one boiler house at S.Schedrina.

The proposed investment is EUR 960,000 with a simple payback time of 4.4 years. The proposed financing plan is as follows:

  • Total loan – EUR 500,000 (52%)
  • Total grant – EUR 300,000 (31%)
  • Total Chernivtsi local contribution – EUR 160,000 (17%)

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

  • Saving 1,090 MWh heat per year (8% saving from the baseline*)
  • Saving 1,130,000 m³ gas per year (83% saving from the baseline*)
  • Saving 760 m³ water per year (59% saving from the baseline*)
  • Saving 2,400 tonnes CO2 per year (92% saving from the baseline*)

*Baseline is estimated for the networks in question only (not the entirety of the district heating in Chernivtsi) for the case of no-project activity.

Current status

The project is currently in the implementation stage. Please check our procurement page for the announcement of project procurements.


Photo credit: Klymenkoy