Setting the Agenda for Further District Heating Reform in Ukraine
Since 2015, Ukraine has taken major legislative and policy steps to reform its energy sector and introduce competition for natural gas and electricity services, in particular by establishing cost-reflective pricing, phasing out implicit tariff subs...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/477931583763702822/Setting-the-Agenda-for-Further-District-Heating-Reform-in-Ukraine http://hdl.handle.net/10986/33473 |
| Summary: | Since 2015, Ukraine has taken major
legislative and policy steps to reform its energy sector and
introduce competition for natural gas and electricity
services, in particular by establishing cost-reflective
pricing, phasing out implicit tariff subsidies, and
introducing the ability for consumers to change suppliers.
Because of this transition towards market-based
arrangements, the Ukrainian district heating (DH) sector has
been faced with major technical, commercial, financial,
operational, and institutional challenges. The main purpose
of this report is to present an analysis of the status of DH
sector reform and of the remaining challenges, and to
identify proposals to address these challenges, so as to
facilitate the emergence of a comprehensive DH sector reform
agenda, including an alignment of key decision-makers and
stakeholders around crucial reform components and a process
to implement these reforms. The report is organized as
follows: section one gives introduction. Section two
provides an overview of the current situation of the DH
sector including its relative weight in the country’s energy
consumption in the heating services provided to the
population, its financial situation, and the estimate of
investments at the national level needed for modernization
of the DH infrastructure. Section three analyzes the reform
actions impacting the DH sector which have been implemented
or initiated over the last few years, presenting the
achievements as well as the limitations of these reforms.
The outstanding key issues to be addressed as part of DH
sector reform are analyzed in section four. Section five
discusses two reform options for the DH sector which have
been discussed among stakeholders for some time but for
which there is no consensus. Section six identifies a list
of reform actions for each major sector reform strategic
priority, separating short term actions, and medium-term
actions to be implemented in 2020 as part of a comprehensive
package of reforms after adequate technical preparation and consultations. |
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