USAID Municipal Heating Reform in Ukraine Project: Energy Monitoring Report for Implemented Demonstration Projects: Heating Seasons 2010-2011, 2011-2012

The project cooperates with the Government of Ukraine and local authorities on implementation of positive systemic changes in the heating sector on three relevant levels: national, regional, and end-user. The project selected facilities in which to implement 34 demonstration projects, with results measured for 20 of these projects to date. The implemented demonstration projects can be broadly grouped into four key categories based on the segment of the district heating system they cover: generation systems, heat distribution networks, regulation and consumer interface, and end-use. According to the monitored energy savings, the following decreases in energy consumption were achieved: 10% of natural gas due to replacement of inefficient boilers, 31.5% of fuel from rebuilding boiler houses, replacing inefficient boilers, and switching from fuel oil to natural gas, and 3.5% of boiler house's electricity consumption due to installation of variable frequency drives at ventilators. In Ukraine, district heating is defined as heat produced at various heat sources, transported via heat networks, and sold to third parties. There is huge potential for energy efficiency gains in each part of the district heating supply chain: production, transmission, distribution, and end-use. The exact amount of energy loss is difficult to measure due to lack of metering equipment, but the Ministry of Regional Development, Construction, Housing and Communal Services estimates that up to 60% of energy is wasted within the district heating supply chain. The sharp rise in imported natural gas prices in 2011-2012 highlighted the urgent need to modernize the country's district heating systems, to improve their energy efficiency and reduce energy losses. Improving the sector's energy efficiency can significantly reduce Ukraine's natural gas consumption and its dependence on imported natural gas. Today, heat boilers and electric power plants account for almost 40% of all natural gas consumption in Ukraine. Analyzing efficiencies on the end-use side is especially important, primarily because it provides the information needed to understand the true loads that need to be served. Accurate knowledge of end-use needs and detailed consumption patterns can facilitate accurate design and development of the district heating system as a whole. The project's monitoring report provides information on the actual energy and financial savings achieved during the monitoring period, the comparison with estimated annual savings, and the calculated payback periods. The report highlights the importance of metering heat consumption and improving heating demand and supply statistics, as existing information is based largely on normative consumption or estimates. The project's efforts to modernize the district heating systems and improve their energy efficiency are crucial for reducing Ukraine's natural gas consumption and its dependence on imported natural gas.