geletukha saee forum 2016Head of the Bioenergy association of Ukraine took part in the VIII International Investment Business-Forum "Energy Efficiency anf Renewable Energy" on November 1-2, 2016. During his speech at the panel 4 "Competitive heat market. Prospects for Ukraine", Georgiy Geletukha spoke about the problems that currently exist in the district heating sector (DH) of Ukraine, European experience in the regulation of the DH and the concept of a competitive heat market for Ukraine.

Currently, the municipal heating companies in DH sector are in a monopoly position that together with imperfect legislation has created the following problem issues:

  • The absence of conditions for competition in the heat supply sector
  • High prices for heat
  • Depreciation of fixed assets, high losses, low efficiency
  • Lack of own funds of municipal heating enterprises
  • The lack of incentives to improve production efficiency of heat
  • The existence of barriers for independent heat producers to access district heating systems
  • The absence / lack of investment as a result of imperfection of the existing mechanisms for tariff setting ("selfcost + 6%").

Solution: developed European countries mostly have already created a competitive market of thermal energy, and the rest of the EU countries are moving in this direction.

Creation of a model of the competitive heat market in Ukraine will stimulate production of energy from alternative sources and will enable substitution of additional 3 billion m3 of gas in district heating sector.

More about the concept of introducing competitive heat market in district heating of Ukraine in presentation of Georgiy Geletukha within the

Programme of the VIII International Investment Business-Forum "Energy Efficiency anf Renewable Energy", November 1-2, 2016