DENMARK SUPPORTS CRITICAL REFORMS IN UKRAINE’S DISTRICT HEATING SECTOR

The event gathered key stakeholders, including representatives from the Ukrainian government, members of the Verkhovna Rada, the National Energy and Utilities Regulatory Commission of Ukraine (NEURC), municipal heating companies, international financial institutions such as the European Bank for Reconstruction and Development (EBRD), and diplomatic missions.

Addressing a Sector in Crisis

Russia’s ongoing attacks on Ukraine’s energy system have severely impacted millions of Ukrainians, making heat supply a national priority. The heating sector faces immense challenges, including war-inflicted destruction of thermal power plants and boiler houses, as well as long-standing financial, technical, and regulatory issues.

In collaboration with the Danish Energy Agency and consultancy Rambøll, experts have prepared two comprehensive reports outlining key challenges and recommendations for reform. These reports highlight critical areas such as outdated infrastructure, financial instability and debt burdens, system energy losses, and the urgent need to align heating supply with European standards for energy efficiency and sustainability.

Key Reform Recommendations

Discussions at the event focused on solutions to modernize the sector, including:

• Reforming the regulatory framework using the EU’s Energy Efficiency First principle.
• Implementing cost-reflective, fair, and transparent heat tariffs.
• Attracting international financing and donor support to break the “vicious circle” of underinvestment in modernization efforts.

Danish Energy Agency (DEA) in cooperation with the Ministry for Development of Communities and Territories of Ukraine (MinInfra), had developed two reports containing recommendations to the proposed reforms in the district heating sector in Ukraine.  These reports form part of the Danish technical support to align Ukraine’s heat supply rules with the EU EED and related legislation. The reports can be downloaded here: (PDF files in UKR, ENG)  

Denmark, with its extensive experience in district heating and energy efficiency, is proud to support Ukraine in these efforts. Through the Ukraine-Denmark Partnership Programme (UDEPP), Denmark will continue to contribute to the reform process, helping Ukraine meet the requirements for EU accession and ensuring a sustainable and secure energy future.

Looking Ahead: Strengthening EU Integration

Minister Aagaard emphasized that Denmark’s upcoming Presidency of the European Union in the second half of 2025 will provide a key platform to further support Ukraine’s energy sector transformation.

The Danish Energy Agency remains committed to assisting Ukraine in achieving an energy-efficient, financially stable, and resilient district heating sector—one that not only meets immediate needs but also secures long-term sustainability and EU integration.

Link to the FULL REPORT PART I: here.

Link to the FULL REPORT PART II: here.

Link to the FULL REPORT PART I (in Ukrainian): here.

Link to the FULL REPORT PART II (in Ukrainian): here.