Eligibility criteria

Eligibility criteria define which district heating companies can participate in the programme and thus receive financing for their projects. As of 2021, SUDH programme already has the expected number of participating cities and therefore no longer accepts new applications. This, however, may change in the future.

SUDH eligibility criteria:

  1. 100% municipally*-owned district heating company;
  2. Municipal authorities strategically support district heating development;
  3. Municipality must comply with Nefco’s requirements on financial stability and is ready to provide a municipal guarantee, for the full loan amount;
  4. Municipality and district heating company are both ready to borrow in a foreign currency.

*Oblast ownership or municipality ownership

Only cities with district heating companies fully responsive to these criteria can participate in the programme.

The following will be considered as an advantage:

  • A clear vision on district heating as a strategic tool for long-term sustainable development;
  • Readiness to implement modern approaches to district heating;
  • Experience in cooperation with international technical assistance projects.

Project ideas

The SUDH programme is directed at projects with a strategic approach and significant long-term positive impact. An important aspect is utilisation of non-fossil fuel energy sources for heat generation. These can be renewable energy sources as well as waste heat from nearby industries. Coordination consultants will assist Project Partners in finding and developing investment ideas in line with the programme’s approach. It is expected, however, that district heating companies are receptive to modern technologies and collaborate in identifying project ideas.

Technology requirements

The financed projects shall be based on district heating technology that has been proved to be sound, after being applied for decades in the Nordic countries. Core principles of this include:

  • Interconnected, efficient district heating systems allowing for optimal use of fuels and heat sources;
  • Demand-driven district heating systems;
  • Utilisation of renewable or waste heat sources;
  • Cost-effective solutions.

No projects will be implemented with experimental technology that has not been duly tested over time. We keep accountability as our core value and are answerable for the use of public funding from Ukraine and Sweden.

The technology requirements will be specified in the SUDH Technology Statement, which is currently under preparation.

Donors and financiers


Nordic Environment Finance Corporation



Programme consultants


Coordination and communication consultant


Local coordination and communication consultant