District heating systems in Ukraine are to be modernised, thanks to a €14 million (£11m) investment.
The cash will be used to improve energy efficiency, reduce energy losses and improve district heating services for almost 150,000 residents in the western municipality of Lutsk.
It will finance a number of projects, which includes the installation of 210 individual heating sub-stations and a 2.5MW biofuel boiler as well as replacing almost 13 kilometres of distribution network pipes with pre-insulated ones.
District heating systems account for 20% of Ukraine’s total carbon emissions and use almost 44% of its resources for heat energy, according to the European Bank for Reconstruction and Development (EBRD).
The EBRD is providing a loan of up to €7 million (£5.5m), supported by €3 million (£2.4m) from the Clean Technology Fund and €4 million (£3m) from the Eastern Europe Energy Efficiency and Environment Partnership (ESP).
“These investments in district heating systems aim to increase energy and cost efficiencies, improve financial sustainability and support the regulatory reform of municipal utilities”, the EBRD said.