The project has been cancelled

Location: Eastern part of Severodonetsk
Programme: DemoUkrainaDH
Project status: Cancelled
Investment: 815,000 EUR
Payback period: -
Reduced gas consumption: 570,000 m³/year


1,100 tonnes/year

Severodonetsk is a city in the Luhansk Oblast located in south-eastern Ukraine. The city has a total area of 42 km2 and has a population of 100,000 people. Severodonetsk is a major industrial centre which produces 22% of Luhansk region industrial output.

The sources of heat supply are two companies. CE “Severodonetskteplokomunenergo” is a company that produces and supplies thermal energy, and CE “Severodonetskiteplovimerezhy” distributes the thermal energy generated at “Severodonetsk CHP”. The two companies distribute heat energy in separate parts of the city and their operations are not connected. District heating company CE “Severodonetskteplokomunenergo” has a total connected heat load of 100 Gcal/h.

Severodonetsk Demonstration Project – overview

The district heating infrastructure in Severodonetsk is generally in bad technical condition and the company is not providing the population with hot water outside the heating season.

The project comprises renovation of a micro-district including the modernisation of the distribution system and measurers in the in-building piping systems.

Severodonetsk Demonstration Project – details

The project comprises the renovation of the micro-district 81 in the city of Severodonetsk.

Specifics of the Severodonetsk Project include:

  1. Network replacement –Installation of new pre-insulated district heating pipelines.
  2. Individual Heat Substations – Introduction of IHSs in the buildings, in total 11.
  3. Installation of balancing valves in the in-buildings riser pipes and installation of new distribution pipes for heat in the building basements.
  4. Close down the existing Central Heating Station.

The proposed investment is EUR 815,000. The proposed financing plan is as follows:

  • Total loan – EUR 375,000 (46%)
  • Total grant – EUR 300,000 (37%)
  • Total Severodonetsk local contribution – EUR 140,000 (17%)

The project is expected to benefit the local community by:

  • Saving 5,390 MWh heat per year (30% saving from the baseline*)
  • Saving 570,000 m³ gas per year (30% saving from the baseline*)
  • Saving 90 MWh electricity per year (30% saving from the baseline*)
  • Saving 1,100 tonnes CO2 per year (30% saving from the baseline*)

*Baseline is estimated for the networks in question only (not the entirety of the district heating in Severodonetsk) for the case of no-project activity.

Current status

The project has been cancelled. The security situation in Severodonetsk in 2014-15 did not allow to proceed with the project. Although the city is located outside of the conflict zone, the project has not proceeded.


Photo credit: Lionking