Reform of the District Heating Sector in Ukraine (ReWarm)

District heating (DH) is an important pillar of the basic energy supply in Ukraine. However, the DH systems are outdated, not very energy efficient and cause high CO2 emissions. Municipal DH-companies are mostly in debt and cannot invest in modernizing their systems. In addition, heating infrastructure in Ukraine was damaged by the Russian Federation's war on Ukraine. The project supports the development of a national DH strategy and the adjustment of the legal framework as well as the pilot implementation of adapted business models for municipal DH companies, including cost-covering, socially cushioned DH tariffs. It thus provides significant support for the reconstruction of DH infrastructures destroyed by acts of war. Climate-friendly municipal energy plans are being developed with selected municipalities. Experience gained will be made available to other municipal DH companies.

Project data

Countries
Ukraine
IKI funding
4,500,000.00 €
Duration
04/2023 till 03/2027
Status
open
Implementing organisation
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner
  • Ministry for Communities and Territories Development of Ukraine
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State of implementation/results

  • The first draft of the gap study on district heating regulations between the EU and Ukraine was welcomed by SAEE and accepted in terms of content.
  • The study on the comparative policy analysis of district heating regulations in eastern Germany, Poland, Czechia, Latvia, and possibly Slovakia was launched.
  • The decarbonization study for Chernihiv was confirmed by the city and presented to MinDevelopment. The study for Kryvyi Rih is nearing completion.
  • In 2025, another Memorandum of Understanding (MoU) was signed between the Ministry of Development of Communities, Territories and Infrastructure of Ukraine (MinInfra), SAEE and Swjahel.
  • From August 28-30, 2025, a high-profile nationwide district heating forum was organized and held in Cherkasy, including GIZ participation in panel discussions.
  • The beta testing phase of the digital, freely accessible district heating library of the Yaroslav Mudryi National Library began on 27.08.2025.
  • Presentations were given, including on 20.08.2025, as part of an event organized by the Ecoclub Rivne Rotary Club.
  • From May 18-24, 2025, a study trip to Lithuania was organized for representatives of pilot municipalities in cooperation with Ecoclub Rivne and the Lithuanian District Heating Association on the transformation of district heating after 1990.
  • On 09.04.2025, a meeting of all partners took place with the participation of Deputy Minister Kowaltschuk, Member of Parliament Ms. Gryb, and representatives of the German Embassy in Kyiv.
  • Support was given to GIZ activities for “Winter Aid Ukraine” (BMZ initiative), which resulted, among other things, in the procurement of batteries for the district heating sector in the ReWarm pilot municipalities in the first quarter of 2025.
  • The European Investment Bank (EIB) has earmarked EUR 250 million in loans for the district heating sector in Ukraine. The pilot cities are being supported in reviewing such financing.
  • On 05.07.2024 a MoU between the Ministry of Development of Communities, Territories and Infrastructure of Ukraine (MinInfra), SAEE, and the selected pilot cities of Kyiv, Odessa, Kryvyi Rih, and Zviahel. Further MoUs were signed with Chernihiv and Cherkasy.
  • Working groups were set up in the cities and regular discussions were held on the implementation of long-term district heating plans.

Latest Update:
12/2025

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