Ukraine’s district heating sector is one of the largest in the world, but the infrastructure is getting deteriorated as most of it was built during the Soviet times. In addition to the ageing assets, there is also a challenge related to energy efficiency and the extensive use of fossil fuels generating an extremely large amount of CO2 emissions.
Thereby, a gradual modernisation of Ukraine’s district heating network is required to maintain energy security and reliability, and to provide consumers with cleaner resources to heat their homes.
Denmark is a leading example in using modern district heating networks for low-carbon heat generation with 100% renewable resources such as domestic waste or surplus heat. The Nordic country not only serves as a great source of inspiration, but also as an investment platform for Ukraine’s district heating network rehabilitation.
A new collaboration between Danish Danida Sustainable Infrastructure Finance (DSIF) and The Nordic Environment Finance Corporation (NEFCO) will contribute to the rehabilitation of Ukraine’s city of Kremenchuk. The investment comprises a EUR 4.45 million grant from DSIF, financed by the Ministry of Foreign Affairs in Denmark, a EUR 6 million loan from NEFCO, and the city’s own contribution of approximately EUR 2.25 million.