The process of competitive selection of the Ukrainian cities - future partners of the USAID Municipal Energy Reform Project in Ukraine (USAID Project) has completed. The Project will support the selected cities in development of the long-term plans of heat network development, including optimization and integration of the district heating networks, as well as creation of the long-term investment programs for district heating networks.

The competition for cooperation with the Project was open, the period for submission of the application was June 4-20. During this period, the announcement of the competition, the application form for participation and detailed information on the USAID Project activities in potential partner municipalities were posted on the USAID Project website. Invited for participation in the competition were the cities with over 500 Gcal/year of connected heat load, and in which one municipal DH utility is responsible for operation of the heat network(s) with the connected heat load exceeding 50% of the total heat load of the city.

On June 12, the USAID Project team held an informational meeting for those municipalities who expressed interest in the competition. During the meeting, all the participants were able to receive answers to their questions.

As a result, 33 cities expressed their willingness to cooperate with the USAID Project by submitting the relevant applications. After a thorough selection process, a specially created commission which included representatives of the USAID Project, MinRegion, NEURC, State Agency for Energy Efficiency, NEFCO and Arnika LLC, has selected two cities for cooperation with the Project. They are Zaporizhzhia and Bila Tserkva.

The important factors taken into account by the commission during analysis of the applications were the completeness and quality of the answers given by the municipalities, and the general criteria included the following:

Criteria regarding long-term municipal planning:

• Approved long-term or medium-term energy plan or program (Municipal Energy Plan, SEAP, SECAP or similar document).
• Developed and approved long-term program or another document on energy efficiency improvement in buildings (public and residential sector).
• Developed and approved long-term municipal development plan or similar document.

Criteria regarding energy management in the applicant’s municipality:

• Existence or condition of the energy management structure organization.
• Percentage of buildings (public and residential) equipped with the commercial heat meters.

Criteria regarding DH network condition:

• Developed and approved municipal heat supply plan.
• Conducting energy audits of the DH systems.
• Previous experience of DH network modernization. Readiness to invest in development of DH systems.

Criteria regarding diversification of HE generation in the municipality:

• Current and/or potential use of alternative or renewable energy sources for heat generation.
• Current and forecasted structure (on the basis of the Municipal Energy Plan or similar document) of district heating (ranking).

Cooperation between the USAID Project and selected partner cities will start in the near future and will last through 31 March 2019.