The study outlines a multi-step process for Ukraine to consider. In the short term, the necessary step in improving efficiency of heat consumption is the introduction of heat metering with temperature controls and consumption-based billing. Building-level heat meters should be installed in all Ukrainian buildings that use district heat together with temperature controls at individual heat substations. Consumption-based billing should become obligatory.

The study also finds that a comprehensive, nation-wide energy efficiency program needs to be put in place. In the short term, a conducive legal and regulatory framework needs to be created to facilitate energy efficiency investments on the demand and supply side. The framework should include a tariff structure that allows recovering investment costs, as well as awareness building for the population. In the medium to long term, it is important to start implementing energy efficiency measures in buildings. Insulating roofs and basements as well as replacing windows and outside doors could further decrease heat consumption by 35-40 percent. Recent research shows that these energy efficiency measures in Ukrainian buildings could be achieved within 10 years.

For more information about released study, please visit the World Bank website.

Download full report “Modernization of the District Heating Systems in Ukraine: Heat Metering and Consumption-Based Billing”