EBRD loan modernises local heating systems in Ukraine

The quality of heating and hot water delivery to the 200,000-strong community in Ivano-Frankivsk, western Ukraine, is in need of improvement. An EBRD loan is helping a local utility in Ukraine cut energy losses and improve supply of heating and hot water.

The EBRD approach

In April 2009 the EBRD provided €11.7 million to the city’s municipal utility, Ivano-Frankivsk Teplokomunenergo, to support its programme to cut energy losses and reduce the consumption of gas and electricity.

The modernisation of the heating network will involve replacing old boilers, installing biomass-fired boilers and introducing gas-fired co-generation units. An important element in the overall programme is the promotion of a new tariff system recently introduced in the city.

The Swedish International Development Agency provided separate grant funding of SEK50 million.

Substantial energy efficiency benefits

Energy efficiency measures are expected to reduce Teplokomunenergo’s CO2 emissions by up to 90,000 tonnes between 2008 and 2012. This is likely to make the company eligible to sell carbon credits via the EBRD’S Multilateral Carbon Credit Fund.