Distributed generation in Ukraine: how decentralized solutions help maintain heat and water supply in wartime

Amid constant russian attacks on energy infrastructure, it is local sources of heat and electricity that enable communities to maintain basic services — heat and water — even when large facilities are damaged or de-energized.

Instead of relying solely on large centralized facilities, the state, together with communities, is focusing on distributed generation — local sources of heat and electricity that can be quickly deployed, protected, and restored.

In 2025, this direction became one of the key ones for the stable operation of utilities — heat and power plants, water utilities, and other critical infrastructure facilities.

Cogeneration plants, modular boiler rooms, and gas turbine plants can operate close to consumers and start up autonomously. Cogeneration simultaneously produces electricity and heat, modular boiler rooms quickly replace destroyed stationary facilities, and gas turbine units are powerful local sources of electricity for critical facilities and industrial hubs.

Combined, these solutions form a decentralized network that is more resilient and less vulnerable to russian attacks.

As practice has shown, a boiler room in a community can operate even if a large thermal power plant is damaged, and pumping stations can pump and purify water even if there is no electricity in the grid.

Today, more than 570 MW of new decentralized capacity has already been commissioned in Ukraine's municipal sector.

For example, block-modular boiler houses with a total thermal capacity of over 360 MW can provide a reliable heat supply to over 200,000 people. And over 200 MW of electrical capacity of cogeneration plants can ensure the stable operation of the water supply system of a city with a population of over one million.

In total, international donors have confirmed the supply of:

• 568 cogeneration plants (973.7 MW of electricity),
• 364 modular boiler houses (756.2 MW of heat),
• 28 gas turbine plants (233.7 MW of electricity).

A significant portion of these have already been installed, connected, or are in the final stages of commissioning.

"We are purposefully changing the architecture of the system and consistently reducing dependence on large centralized facilities in favor of local solutions in communities. We are strengthening the autonomy of communities so that even in the most difficult conditions, life support systems continue to function. Distributed generation is a practical tool that already allows us to conserve heat and water even in the event of damage to large infrastructure facilities," emphasized Deputy Prime Minister for the Restoration of Ukraine — Minister for Communities and Territories Development Oleksii Kuleba.

To promote decentralized solutions in 2025, the Government introduced additional support measures, including:

• special gas prices for distributed generation facilities in frontline regions;
• simplified procedures for installing distributed generation facilities;
• resumption of tenders for the construction of generating capacities;
• simplification of permits for drilling wells;
• simplification of the procedure for purchasing equipment for heat generation and works related to drilling wells;
• some UAH 665 million allocated to frontline regions for fuel for backup power sources.

In 2026, it is planned to introduce more than 500 MW of new decentralized capacity. This means more autonomous communities, fewer critical shutdowns, and greater resilience of life support systems.