The project has been cancelled in 2020, due to changed priorities for development of the district heating system in the city

Location: Eastern part of Pavlohrad
Programme: DemoUkrainaDH
Project status: Cancelled
Investment: 565,000 EUR
Payback period: 8 years
Reduced gas consumption: 400,000 m³/year


1,020 tonnes/year

Pavlohrad is located in the eastern part of the Dnipropetrovsk Oblast, on the floodplain terraces of rivers Samara and its channels. The population in the city is about 110,000 in an area of nearly 60 km2. The city retains its strong industrial capacity since the Soviet Union, characterised by high levels of mining industry, chemical industry, metallurgy, manufacture of fabricated metal products and machinery.

The approximate share of district heating service in the city is 35% and it is provided by the Municipal Enterprise “PavlohradTeploenerho”. The company operates 19 boiler houses of total installed heat production capacity 371 Gcal/h and provide district heating to 560 houses.

Pavlohrad Demonstration Project – overview

The proposed project involves connection of a hospital to a larger district heating system, supplemented with installation of solar panels for preparation of domestic hot water, disconnection of a remotely located residential area with installation of a local biomass boiler, using gas for peak and reserve purposes, as well as partial replacement of the piping network which will dramatically reduce the use of fossil fuels in the system.

The proposed project is interesting from a demonstration point of view as it includes the application of solar energy technology and a complete renewal of the heat supply system. Thereby, it can be used as a demonstration of how district heating can be renewed, avoiding lock-in effects in local heating solutions based on fossil fuels. The proposed project will decrease the use of natural gas by using renewable energy and taking the most inefficient gas boilers out of operation but also through decreased losses in the district heating network by the modern pre-insulated piping, clearly demonstrating the benefits of downsizing dimensions.

Pavlohrad Demonstration Project – details

The project area is situated in the eastern part of Pavlohrad city and includes heated area of two boiler houses, one is the boiler house of “Fifth Micro-district” (Novorosiiska str. 6-A) and the other is the boiler house of the “Central City Hospital No 4” (Dniprovska Str., 541). These networks supply district heating to 47 customers and the modernisation of the two networks affects more than 6,200 people who will benefit from the improvements in their district heating system.

Figure 1: Map of Pavlohrad with the indication of the Project area

Specifics of the Pavlohrad Project include:

  1. Disconnection of the buildings at T. Fedorovoi street from the current district heating system.
  2. Removal of the existing pipeline from boiler house no. 5 to the buildings at T. Fedorovoi.
  3. Installation of a new pellet boiler (1×600 kW) and a new gas boiler (1×1,000 kW) in a container solution for the buildings at T Fedorovoi street.
  4. Connection of the hospital boiler house to the district heating system.
  5. Installation of a solar energy solution at the hospital roof combined with a backup boiler.
  6. Network replacement within the project area – approx. 700m.
  7. Individual Heat Substation – Introduction of 1 modern HIS in the 9-storey building

The proposed investment is EUR 565,000 with a simple payback time of 8 years. The proposed financing plan is as follows:

  • Total loan – EUR 240,000 (42.5%)
  • Total grant – EUR 240,000 (42.5%)
  • Total Pavlohrad local contribution – EUR 85,000 (15%)

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

  • Saving 1,760 MWh heat per year (7% saving from the baseline*)
  • Saving 400,000 m³ gas per year (15% saving from the baseline*)
  • Saving 320 m³ water per year (7% saving from the baseline*)
  • Saving 1,020 tonnes CO2 per year (20% saving from the baseline*)

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

Current status

The project has been cancelled in 2020, due to changed priorities for development of the district heating system in the city.


Photo credit: Nataliya Shestakova