The project has been cancelled. The project has been rejected by the city as the installation of IHSs was considered inexpedient for the district heating company

Location: Eastern part of Dnipro
Programme: DemoUkrainaDH
Project status: Cancelled
Investment: 373,000 EUR
Payback period: 7.4 years
Reduced gas consumption: -


1,010 tonnes/year

Dnipro is an administrative and cultural centre in the Dnipropetrovsk Oblast and one of the major cities of Ukraine. It is located 470 km southeast from Kyiv. The area of the city is 405 km2 and its population is about one million people. Dnipro is one of the most important industrial centres of Ukraine with more than 1,100 big and medium enterprises.

The heat supply of Dnipro includes centralised and individual heating systems. District heating is provided to residential buildings (approximately 63% of the residential buildings in the city), public and commercial facilities. Dnipro has four utilities of district heating service: “Dnipropetrovski miski teplovi merezhi”, “Teploenergo”, “Komenergoservis” (involved in this study) and “Teplotrans”. The Communal Enterprise “Komenergoservis” DCC serves 18 central heating stations (CHS), 5 pressure reduction stations and operates 316 km of heating networks.

Dnipro Demonstration Project – overview

The proposed project involved the installation of IHSs in one district of Dnipro. The district concerned was served with heat through the CHS-6D, and all the connected buildings were intended to be equipped with IHSs, which would have made it possible to close down both the CHS and the distribution pipelines for domestic hot water. The investment was anticipated to significantly reduce the project area’s energy use and water losses, which would have reduced the use of fossil fuels in the combined heat and power plant that supplied the buildings with heat. These parts of the district heating system were planned to be converted to a demand-driven system.

The project was interesting from a demonstration point of view as the introduction of IHSs in the area was expected to increase the quality of heat delivery to the connected buildings, and the system was planned to be converted towards a more sustainable demand-driven system.

Dnipro Demonstration Project – details

The initial project areas were located in the eastern parts of the city of Dnipro. Several of the districts were quite large and not suitable for the size of this project. However, three districts were identified as appropriate in size: CHS-6D, CHS-7 and CHS-3. After further discussions, the project considered the modernisation of the area served from CHS-6D.

Specifics of the Dnipro project included:

  1. Individual Heat Substations – Introduction of 13 IHSs in all buildings in the district served by CHS-6D.
  2. Network replacement – approx. 1,000m of new distribution pipelines in the district served by CHS-6D, convert the present pipe systems.
  3. Close down of CHS-6D.

The proposed investment is EUR 373,000 with a simple pay-back time of 7.4 years. The proposed financing plan was as follows:

  • Total loan – EUR 149,000 (40%)
  • Total grant – EUR 148,000 (40%)
  • Total Dnipro local contribution – EUR 76,000 (20%)

The project was expected to benefit the local community by:

  • Saving 2,850 MWh heat per year
  • Saving 55 MWh electricity per year
  • Saving 1,010 tonnes CO2 per year

Current status

The project has been cancelled. The project has been rejected by the city as the installation of IHSs was considered inexpedient for the district heating company.


Photo credit: Sergey Ryzhkov