Interconnection of three local distribution systems and modernisation of one of the local heat generation plants

Location: Western part of Starokostiantyniv
Programme: DemoUkrainaDH
Project status: Pre-implementation
Investment: 1,149,000 EUR
Payback period: 6.2 years
Reduced gas consumption: 1,980,000 m³/year


3,800 tonnes/year

With 35,000 inhabitants, Starokostiantyniv is an important administrative and cultural centre located in the Khmelnytska Oblast, 300 km to the west from Kyiv.

The heat supply of Starokostiantyniv city includes a share of district heating of about 60%. There are 171 buildings connected to the district heating system and, among them, 126 buildings are also supplied with centralised domestic hot water. Municipal Company “Teplovyk” is the only district heating supplier in Starokostiantyniv. It operates 14 boiler houses with total installed heat production capacity at 72 Gcal/h. The total length of the district heating networks is 31 km.

Starokostiantyniv Demonstration Project – overview

The proposed project concerns interconnection of three local distribution systems and modernisation of one of the local production plants with one biofuel boiler for the baseload production and one gas boiler for peak load production. The existing local pipe distribution network will be converted and most buildings will be connected to the network via individual heating substations.

The project is interesting from a demonstration point of view as the investment covers a substantial modernisation of generation, distribution and use of district heating in the system, from boiler to pipelines and IHS. The introduction of biofuel in combination with decreased thermal losses and higher efficiency will reduce the use of fossil fuels. The upgraded system will keep some customers without IHSs installations and will demonstrate a way to combine customers with and without IHS installations.

The introduction of IHSs in the area will increase the quality of heat delivery to the connected buildings by enabling a heat supply in relation to actual heat demand.

Starokostiantyniv Demonstration Project – details

The project area is situated in the western part of Starokostiantyniv city and includes heated areas of three boiler-houses at the addresses: (1) No. 7 at the Heroiv Krut Str., 8/3; (2) No. 8 at Myru Str., 1/136; and (3) No. 9 at Myru Str., 1/139. These networks provide heat to 53 separate buildings, including 10 public buildings, and one separate commercial object. Most residential customers of boiler house No. 8 at Myru Str. 1/136 and all residential customers of boiler house No. 9 at Myru Str. 1/139 are also provided with DHW. Modernisation of the three networks affects a total of 6 700 people who will benefit from the improvements in their district heating system.

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

Specifics of the Starokostiantyniv Project include:

  1. Installation of a biomass base-load boiler (1×2.5MW), a peak-load gas boiler (1×2.5MW) and boiler house upgrade (No. 9 at Myru Str., 1/139).
  2. Installation of new transmission pipes – approx. 790 m of district heating pipes.
  3. Individual Heat Substations – Introduction of 30 IHSs.
  4. Network replacement – transformation of the pipe system.

The proposed investment is EUR 1,149,000 with a simple payback time of 6.2 years. The proposed financing plan is as follows:

  • Total loan – EUR 500,000 (44%)
  • Total grant – EUR 300,000 (26%)
  • Total Starokostiantyniv local contribution – EUR 349,000 (30%)

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

  • Saving 3,880 MWh heat per year (15% saving from the baseline*)
  • Saving 1,980,000 m³ gas per year (74% saving from the baseline*)
  • Saving 1,000 m³ water per year (3% saving from the baseline*)
  • Saving 3,800 tonnes CO2 per year (67% saving from the baseline*)

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

Current status

The project is currently in the stage of receiving all the necessary approvals in preparation for implementation.


Photo credit: city administration