DemoUkrainaDH is a programme established by NEFCO and the Ukrainian Ministry of Regional Development, Construction and Municipal Economy. DemoUkrainaDH provides financing for demonstration projects aimed at modernising and upgrading district heating systems in Ukraine. The programme is financed by NEFCO, the Swedish government via the Swedish International Development Cooperation Agency (Sida) and the Eastern Europe Energy Efficiency and Environment Partnership (E5P). NEFCO administers the programme and ensures cost and energy efficiency by consulting and sourcing professional district heating expertise.
The municipal district heating projects are financed with grants from Sida and loans from NEFCO. DemoUkrainaDH offers grant funding up to a maximum of 50% of the total external funding, but not exceeding EUR 300,000 per project. Moreover, credit financing is offered to a maximum of EUR 500,000 per project. Applicants for DemoUkrainaDH will have to fund themselves not less than 15% of the project costs.
So far, the programme has selected ten project partners in the cities of Vinnytsia, Zhytomyr, Kyiv, Donetsk, Severodonetsk, Poltava, Kryvyi Rig, Alexandria, Kamenets-Podilskyi and Ivano-Frankivsk.
Ukraine has a huge potential to save energy – the government has estimated that some 50% of the energy consumed in the country could be saved by investing in energy efficiency technologies in the industrial and municipal sectors. The International Energy Agency (IEA) maintains that energy efficiency represents Ukraine’s best opportunity to improve its energy security.