District heating development in Ukraine

The aim of the Sweden-Ukraine District Heating Fund is to demonstrate development of modern and energy efficient district heating with a significant share of production based on renewable and waste heat sources, ultimately meeting the EU requirements for efficient district heating. These demonstration projects provide a holistic approach to strategic reforms of the district heating system. The projects are typically designed to provide a starting point for development of long-term sustainable and customer-oriented district heating in Ukraine.

The implementation of the Fund is based on experiences gained in the DemoUkrainaDH program for demonstration of best practices for design, procurement and project implementation of modern and energy efficient district heating.


The Fund is financed by Sweden, which has invested EUR 6 million into the programme. Up to EUR 4 million will be allocated to technical assistance during the implementation of the program.

The focus is on:

  • Creation of district heating systems large enough to enable effective use of renewable and waste heat sources;
  • Improved district heating services enabling the customers to control heat consumption in relation to their demand with improved indoor climate and hot water supply as a result;
  • Introduction of renewable and waste heat sources enabling efficient district heating production with low environmental and climate impact;
  • Savings in production, distribution and use of energy and water.

Available funding

The programme provides funding in form of loans and grants, as well as technical assistance to selected project partners in Ukraine. NEFCO can provide loan up to EUR 5 million for each project.The grant cannot exceed 30 per cent of the total investment cost of each project. The beneficiaries are expected to provide at least 10 per cent of the project cost from their own funds.

Application process

The project selection process is under development.


Ronny Nilsson

Senior Adviser, District Heating

+358 10 618 06 42
Swedish, English

Alexey Kapustinskiy

Consultant, Ukraine

+380 50 948 3537
Ukrainian, Russian, English