District heating pipelines in Ukraine. Photo: Patrik Rastenberger

The Ukrainian city of Kamyanets-Podilsky has signed a new loan agreement with NEFCO to finance energy efficiency investments aimed at upgrading the city’s district heating system.

The energy efficiency project is managed under a Swedish funding facility known as DemoUkrainaDH, which combines grant funding provided by the Swedish International Development Cooperation Agency (Sida) with a loan from NEFCO.

Eight projects are currently being implemented under the DemoUkrainaDH Facility. The Eastern European Energy Efficiency and Environment Partnership (E5P) has also supported the Facility by providing consultancy services for project preparation.

The project in Kamyanets-Podilsky will focus on the installation of more than 20 individual heat substations in combination with modernising internal heating systems, renovating hot tap water systems and installing heat distribution pumps inside residential buildings. The project also aims at rolling out an energy awareness campaign.

The investment package and planned measures are expected to reduce gas consumption by around 441,700 cubic metres annually and consequently enable the city to cut its carbon dioxide emissions by approximately 848 tonnes a year. Moreover, the project will also generate financial savings in terms of reduced water and electricity consumption.

“We are delighted that this project now is ready for implementation as it will demonstrate a cost-effective solution to upgrade a typical district heating system in Ukraine by introducing individual heat substations in buildings in combination with modernisation of the internal heating systems inside the buildings,” says Senior Adviser Johan Willert at NEFCO.

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