Ministry for Communities, Territories, and Infrastructure Development and USAID are engaged in the implementation of a portfolio of distributed generation projects. The cooperation is part of the activities under the Memorandum of Understanding between USAID ESP and the Ministry signed in November 2023.
The projects are aimed at modernizing municipal energy infrastructure, introducing new modern industry technologies, increasing the resilience of energy infrastructure, promoting the integration of distributed generation, and reforming the energy sector.
"We have previous successful experience in implementing projects together with USAID ESP. Communities have already experienced positive changes due to the timely assistance provided. In particular, not long ago, one of the heat supply companies in Khmelnytsky region completed the installation and connection of the first cogeneration unit to the grid. We are confident that we need to further deepen our cooperation to achieve common goals of strengthening Ukraine's energy security and not just restoring our critical infrastructure, but modernizing it," said Oleksandr Kubrakov, Deputy Prime Minister for Restoration of Ukraine - Minister of Communities, Territories, and Infrastructure Development.
Another important aspect of cooperation is the transition to a low-carbon, competitive and EU-integrated energy economy. According to Oleksandra Azarkhina, Deputy Minister for Communities, Territories and Infrastructure Development, the main objective of today's work is to ensure energy sustainability of communities, including the development of distributed energy production with integrated cogeneration, the use of renewable energy sources and biofuels, and the modernization of district heating, including by attracting private investment.
"Distributed generation, which includes cogeneration and alternative fuel sources, is one way to ensure continuous power supply to district heating companies' boiler houses and provide heat supply services, including during outages. This approach also allows for the generation of electricity in an isolated mode (energy island), and serves as a vital energy resource for local critical infrastructure such as water supply, sewage systems and hospitals," said Oleksandra Azarkhina.
ESP has already provided technical assistance to the Ministry. This included the development of a draft law on individual heat points, heat supply schemes, concepts for state support for district heating companies and heat supply modernization, the development of a methodology for setting tariffs based on regulatory assets (RAB), and the organization of training in a variety of areas to strengthen the institutional capacity of relevant state agencies, municipalities, and energy companies.