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 However, the DH systems are outdated, not very energy efficient and cause high CO2 emissions.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

 

  • GIZ's activities for “Winter Aid Ukraine” (BMZ initiative) were supported, including the procurement of batteries for the district heating sector in the ReWarm pilot municipalities in the first quarter of 2025.
  • Contracts were concluded with the Yaroslav Mudryi National Library and a digital district heating library was opened, which can be accessed free of charge.
  • The European Investment Bank (EIB) has earmarked EUR 250 million in loans for the district heating sector in Ukraine. The pilot cities will be supported in examining such financing.
  • In October 2024, a study trip on district heating took place to Berlin and Lublin, Poland. Participants included representatives from the pilot municipalities and their heating supply companies, ministries, authorities, and other municipalities. Another study trip to the oblasts of Shrytomyr and Rivne took place in November 2024.
  • The conditions were created for the signing of the Memoranda of Understanding (MoU) on 05.07.24 in Kyiv with the Ministry for the Development of Communities, Territories and Infrastructure of Ukraine (MinInfra), SAEE, the selected pilot cities of Kyiv, Odessa, Kryvyi Rih and Zviahel. Further MoUs were signed with Chernihiv and Cherkassy.
  • Working groups have been set up in the cities and regular discussions held on the implementation of long-term district heating plans.
  • Presentations were given, including among others one on 02/2024 for MinInfra, at Ukraine-wide events organised by Ecoclub Riwne on district heating and at side events of the Ukraine Recovery Conference on 06/2024.
  • A first stakeholder meeting with all relevant international actors took place on 02/2024.
  • The current situation in the district heating sector was evaluated and an exchange took place with relevant associations and stakeholders (AGFW, BDEW, EU, USAID and Dena).
  • The project is preparing the selection of suitable pilot municipalities in which new business models for municipal heat suppliers are to be introduced and is developing a plan for stakeholder involvement.

Latest Update:
06/2025

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