Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing
District heating (DH) plays a critical role in meeting basic heating needs in Ukraine, but the sector faces serious challenges that must be resolved to avoid collapse. For DH companies, the primary concern is financial sustainability. Companies lack the revenue to invest adequately in DH networks le...
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| Format: | Energy Study |
| Language: | en_US |
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Washington, DC: World Bank
2014
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| Online Access: | http://hdl.handle.net/10986/17147 |
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okr-10986-171472021-04-23T14:03:34Z Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing Semikolenova, Yadviga Pierce, Lauren Hankinson, Denzel approach balance Billing Boiler boiler houses boilers building materials Cheating Cooling Cost of Gas cost of heat costs of heat production covers distribution losses distribution network district heat District Heating District Heating Systems domestic gas Electricity employment Energy consumption energy efficiency energy efficiency improvements energy needs energy prices energy savings Energy Sector energy services engineers fuel fuel costs fuel prices Gas gas boilers gas consumption gas fields gas Heating gas price gas prices gas supply Heat heat delivery heat demand heat energy heat exchanger heat loss heat meter Heat Metering heat meters heat production heat substations heat supply heat tariff heat tariffs heaters hot water hot water services investment in energy efficiency natural gas natural gas prices natural gas sector pipelines pipes Power Power Plant power plants price of gas quantity of heat residential building residential buildings residential consumers safety safety nets space heating supply costs supply efficiency sustainable operation tariff levels temperature temperature control utilities valves waste District heating (DH) plays a critical role in meeting basic heating needs in Ukraine, but the sector faces serious challenges that must be resolved to avoid collapse. For DH companies, the primary concern is financial sustainability. Companies lack the revenue to invest adequately in DH networks leading to lower quality of service and higher operating costs. For customers, the primary concern is quality of service and affordability. Artificially low prices have resulted in the continued deterioration of DH supply assets (and gas supply assets) resulting in lower heat supply quality. Low DH prices have provided little incentive for investment in energy efficiency. As a result, Ukraine is one of the highest energy intensive countries in the world. Ukraine, together with other Former Soviet Union countries, did not follow the path chosen by their neighbors to modernize their DH sectors. Many countries of Eastern Europe enacted critical reforms in the 1990s to address problems related to affordability, quality of service, and financial sustainability similar to those now facing Ukraine. Evidence from these countries suggests that these challenges currently facing Ukraine, while difficult, are far from insurmountable. This study situates heat metering and consumption-based billing in the context of the various DH sector reforms needed in Ukraine. It builds on the work of previous studies including the recommendations of the 2010 Energy Sector Management Assistance Program (ESMAP)-funded study, prepared by the World Bank that identified how to improve the DH sector in Kharkiv. That study outlined the potential for investments in DH systems in Kharkiv and other similar cities in Ukraine in both heat supply and demand side. It also recognized that policy changes needed to be initiated in order to create the enabling environment for this potential to be realized. 2014-02-25T20:51:23Z 2014-02-25T20:51:23Z 2012-03-20 978-966-8869-47-5 http://hdl.handle.net/10986/17147 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo Washington, DC: World Bank Economic & Sector Work :: Energy Study Economic & Sector Work Ukraine |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
approach balance Billing Boiler boiler houses boilers building materials Cheating Cooling Cost of Gas cost of heat costs of heat production covers distribution losses distribution network district heat District Heating District Heating Systems domestic gas Electricity employment Energy consumption energy efficiency energy efficiency improvements energy needs energy prices energy savings Energy Sector energy services engineers fuel fuel costs fuel prices Gas gas boilers gas consumption gas fields gas Heating gas price gas prices gas supply Heat heat delivery heat demand heat energy heat exchanger heat loss heat meter Heat Metering heat meters heat production heat substations heat supply heat tariff heat tariffs heaters hot water hot water services investment in energy efficiency natural gas natural gas prices natural gas sector pipelines pipes Power Power Plant power plants price of gas quantity of heat residential building residential buildings residential consumers safety safety nets space heating supply costs supply efficiency sustainable operation tariff levels temperature temperature control utilities valves waste |
| spellingShingle |
approach balance Billing Boiler boiler houses boilers building materials Cheating Cooling Cost of Gas cost of heat costs of heat production covers distribution losses distribution network district heat District Heating District Heating Systems domestic gas Electricity employment Energy consumption energy efficiency energy efficiency improvements energy needs energy prices energy savings Energy Sector energy services engineers fuel fuel costs fuel prices Gas gas boilers gas consumption gas fields gas Heating gas price gas prices gas supply Heat heat delivery heat demand heat energy heat exchanger heat loss heat meter Heat Metering heat meters heat production heat substations heat supply heat tariff heat tariffs heaters hot water hot water services investment in energy efficiency natural gas natural gas prices natural gas sector pipelines pipes Power Power Plant power plants price of gas quantity of heat residential building residential buildings residential consumers safety safety nets space heating supply costs supply efficiency sustainable operation tariff levels temperature temperature control utilities valves waste Semikolenova, Yadviga Pierce, Lauren Hankinson, Denzel Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing |
| geographic_facet |
Ukraine |
| description |
District heating (DH) plays a critical role in meeting basic heating needs in Ukraine, but the sector faces serious challenges that must be resolved to avoid collapse. For DH companies, the primary concern is financial sustainability. Companies lack the revenue to invest adequately in DH networks leading to lower quality of service and higher operating costs. For customers, the primary concern is quality of service and affordability. Artificially low prices have resulted in the continued deterioration of DH supply assets (and gas supply assets) resulting in lower heat supply quality. Low DH prices have provided little incentive for investment in energy efficiency. As a result, Ukraine is one of the highest energy intensive countries in the world. Ukraine, together with other Former Soviet Union countries, did not follow the path chosen by their neighbors to modernize their DH sectors. Many countries of Eastern Europe enacted critical reforms in the 1990s to address problems related to affordability, quality of service, and financial sustainability similar to those now facing Ukraine. Evidence from these countries suggests that these challenges currently facing Ukraine, while difficult, are far from insurmountable. This study situates heat metering and consumption-based billing in the context of the various DH sector reforms needed in Ukraine. It builds on the work of previous studies including the recommendations of the 2010 Energy Sector Management Assistance Program (ESMAP)-funded study, prepared by the World Bank that identified how to improve the DH sector in Kharkiv. That study outlined the potential for investments in DH systems in Kharkiv and other similar cities in Ukraine in both heat supply and demand side. It also recognized that policy changes needed to be initiated in order to create the enabling environment for this potential to be realized. |
| format |
Economic & Sector Work :: Energy Study |
| author |
Semikolenova, Yadviga Pierce, Lauren Hankinson, Denzel |
| author_facet |
Semikolenova, Yadviga Pierce, Lauren Hankinson, Denzel |
| author_sort |
Semikolenova, Yadviga |
| title |
Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing |
| title_short |
Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing |
| title_full |
Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing |
| title_fullStr |
Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing |
| title_full_unstemmed |
Modernization of the District Heating Systems in Ukraine : Heat Metering and Consumption-Based Billing |
| title_sort |
modernization of the district heating systems in ukraine : heat metering and consumption-based billing |
| publisher |
Washington, DC: World Bank |
| publishDate |
2014 |
| url |
http://hdl.handle.net/10986/17147 |
| _version_ |
1764435642901594112 |