1996 – 1997 (Electrowatt-Ekono Ltd)

Client: Kievenergo and Teplokomunenergo (World Bank, EBRD)

District Heating system was first established in Kiev in 1935 and first CHP plant was deployed in 1937. The Joint Stock Company “Kievenergo” covers the main part of the power and heat demand in the city. Municipal Teplokomunenergo was in charge of smaller scale DH supply in various parts of Kiev.

The purpose of the assignment was to prepare a rehabilitation plan including technical design and a least cost investment program for the Kiev CHP DH system. The investment program was the basis for a USD 200 million loan granted by the World Bank to Kievenergo.

The DH system under Kievenergo comprised 768 km of DN50-DN1220 double pipe, with a peak demand of about 13,000MW. The rehabilitation plan also covered the municipal Teplokomunenergo with 668 km of network (including 510 km of secondary pipes).

The specific objectives of the master plan were to:

• prepare a load forecast considering anticipated efficiency improvements in consumption and in the system itself
• prepare the first-phase, 5 year investment programme
• identify a programme for longer term investment requirements
• prepare technical specifications and bidding documents and to propose implementation arrangements
• provide recommendations on improvements needed in design, operation and maintenance
• evaluate the feasibility of establishing manufacturing capability in Ukraine for energy efficient equipment

Mr. Lehdonvirta was responsible for the project management (semi-resident) including planning and supervision of the master plan work, ensuring close cooperation with local recipients and IFIs involved, and reporting. As a DH specialist, Mr. Lehdonvirta participated the technical design, assessed the energy savings and carried out the economic analysis to prepare the priority investment plan.

CHP DH Cost Allocation and Heat Tariffs

In a separate assignment, Mr. Lehdonvirta advised Kievenergo in introducing a new methodology for allocating the CHP production costs for power and heat, respectively and developing a new heat sales tariffs. The target was to prevent cross-subsidizing between heat and electricity business and as importantly, to provide justified incentives for expansion of CHP DH by fair allocation of efficiency gains in co-generation.