Installation of new gas boilers and a small-scale CHP

Location: Central part of Oleksandria
Programme: DemoUkrainaDH
Project status: Completed
Investment: 740,000 EUR
Payback period: 3.5 years
Reduced gas consumption: 720,000 m³/year


1,380 tonnes/year

Oleksandria is a city located in Kirovograd oblast in central Ukraine with a population of approximately 100,000 people.

The district heating utility of Oleksandria “TeploKomunEnergo” is the initiator of the project. The district heating company serves heat to almost the whole city population. The company has nine boilers in operation with a total capacity of 195 MW and heat generation of approximately 210 GWh/year. The district heating network includes almost 150 km of district heating pipelines and 23 central substations.

Oleksandria Demonstration Project – overview

The district heating generation in Oleksandria is performed mainly at a large boiler station and distributed via a district heating network covering the central parts of the city. The boilers are in a poor condition and the condition of the existing district heating network implies energy losses of at least 20%. The district heating company’s medium- and long-term planning is to convert the existing central substations to boiler houses with modern and effective equipment and the proposed demonstration project is one step in this development.

As a long-term strategy, it is needed to improve the quality and come to a more cost-efficient production and distribution. The proposed project, which aims at smaller decentralised units, is not the most common solution, but it has been thoroughly discussed and found as the best possibility under the current circumstances. The advantages are the reduced distribution losses and an efficient production close to the consumers. The disadvantage is that these smaller units have gas as the only fuel alternative. There are many cities and district heating systems with similar conditions as in Oleksandria and this decentralisation solution to smaller units could be an alternative for several of them.

Oleksandria Demonstration Project – details

The project includes the installation of condensing boilers in an area in the central part of the city. The existing central heating substation for the area (CHS-118) is serving a residential area, with six nine-storey buildings with a total of approximately 1,800 apartments, a kindergarten and a school together with an after-school and a library. CHS-118 will be disconnected and decommissioned and the building to be used as boiler house for the new boilers.

Specifics of the Oleksandria project include:

  1. Installation of new gas boilers (7.5 MW) in a former central heating substation.
  2. Network replacement – approx. 1,000 m of district heating pipelines and obsolete and deteriorated pipelines in basements of the buildings.
  3. Installation of a small-scale CHP for production of electric energy for the needs of the boiler house.

The investment is EUR 740,000 with a simple pay-back time of 3.5 years. The financing plan is as follows:

  • Total loan – EUR 330,000 (44%)
  • Total grant – EUR 300,000 (41%)
  • Total Oleksandria local contribution – EUR 114,000 (15%)

The project benefits the local community by:

  • Saving 6,850 MWh heat per year (42% saving from the baseline*)
  • Saving 720,000 m³ gas per year (37% saving from the baseline*)
  • Saving 225 MWh electricity per year (40% saving from the baseline*)
  • Saving 1,380 tonnes CO2 per year (37% saving from the baseline*)

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

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

  • Conversion of CHS into a Boiler House – Scientific Production Company Limited “LOTA”, Ukraine
  • District heating pipelines – “Komenergoservice” LLC, Ukraine

Current status

The project was completed in autumn 2015. All goods were procured, installed and successfully commissioned.


Photo credit: Nataliya Shestakova