Modernisation of district heating and introduction of demand driven heat supply

Location: South-eastern part of Myrhorod
Programme: DemoUkrainaDH
Project status: Completed
Investment: 695,000 EUR
Payback period: 8 years
Reduced gas consumption: 320,000 m³/year


700 tonnes/year

Watch the project video

Watch a video about the implemented project in Myrhorod and learn more about the new type of technology used in connection to the project.

Myrhorod is the administrative and cultural centre of Myrhorod district in the Poltava Oblast. The city is located at the junction of railway and highways with a population of about 40,000 people. The sectorial structure of industry is mainly represented by food and processing industry, but the main strategic direction of the city is the maintenance and development of resort infrastructure as Myrhorod is known as a resort city not only in Ukraine but also abroad.

District heating is provided to residential buildings, public and industrial facilities with an approximate share of 40-50%. The Municipal Enterprise “Myrhorodteploenergo” is the exclusive district heating supplier in Myrhorod suppling heat and domestic hot water. The company operates 18 boiler houses with a total installed heat production capacity of 88 Gcal/h and a total length of district heating networks of more than 20km.

Myrhorod Demonstration Project – overview

The proposed project concerns the renovation of a separate heating district located in the outskirts of the city. The project includes the replacement of outdated energy generating equipment by modern equipment with high efficiency, the replacement of distribution pipelines and optimized new routing, the replacement of pumps in the boiler house, the automation of the new base load boiler and the installation of individual heating substations at 17 residential houses.

The project proposed is interesting from a demonstration point of view as the investment covers a total modernisation of the system, from boiler to pipelines and IHSs. The project will decrease the use of natural gas, particularly by using modern condensing gas boiler technology with high efficiency and also through decreased losses in the district heating network. With the introduction of IHS, the system is also converted towards a more sustainable demand driven system with improved quality of heating services.

Myrhorod Demonstration Project – details

The project area is situated in the south-eastern part of Myrhorod city and includes heated area of one boiler house situated at Bahachanska street 104-A. Looking at the position of the main city and district heating networks, the district heating area connected to Bahachanska street 104 is situated on the opposite side of the main railway station and industrial ground, making it challenging to potentially inter-connect to the main system in the future.

Figure 1: Map of the project area

Specifics of the Myrhorod project include:

  1. Installation of a new gas fired condensing boiler (1x3MW) and distribution pumps in the boiler house.
  2. Network replacement – Replacement of district heating pipelines and partly new routing.
  3. Individual Heat Substations – Introduction of 17 IHSs.

The investment amounts to EUR 695,000 with a simple pay-back time of about 8 years. The financing plan is as follows:

  • Total loan – EUR 310,000 (44%)
  • Total grant – EUR 275,000 (40%)
  • Total Myrhorod local contribution – EUR 110,000 (16%)

The project benefits the local community by:

  • Saving 3,075 MWh heat per year (28% saving from the baseline*)
  • Saving 320,000 m³ gas per year (28% saving from the baseline*)
  • Saving 60 MWh electricity per year (30% saving from the baseline*)
  • Saving 700 tonnes CO2 per year (32% saving from the baseline*)

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

As a result of competitive procurement, the following suppliers were selected:

  • Boiler house modernisation – LLC “ESCO-Ltava”. Ukraine
  • District heating pipelines, installation – LLC Etalon Bud, Ukraine
  • District heating pipelines – Logstor A/S, Denmark
  • Individual Heating Substations – Brunata OOD, Bulgaria
  • Individual Heating Substations, design and installation – LLC “ESCO-Ltava”, Ukraine

Current status

The project was completed in 2019. All goods were procured, installed and successfully commissioned.


Photo credit: Andrii Romanchenko