Reconstruction of the boiler house by installing a 160 kW cogeneration gas plant for the production of heat and electricity at the address: 17-A Starosvitska Street in Myrhorod, Poltava Region


Sector
Municipal infrastructure and services
Stream
Restoration, modernization and development of centralized and decentralized heating systems
Maturity level
88
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion

General information

Description of the project

Reconstruction of the boiler house with the installation of a 160 kW cogeneration gas plant is an economically and technically feasible solution for increasing the efficiency of the heat supply system. A cogeneration gas plant (CGU) is an energy system that simultaneously produces electricity and heat from natural gas or biogas. This principle of operation is called cogeneration. The project provides simultaneous production of electricity and heat with a high efficiency, which allows to significantly reduce energy costs, increase the energy independence of the facility and ensure stable operation in conditions of unstable energy supply. Additional advantages are the rational use of the existing boiler house infrastructure, reduction of energy losses, reduction of emissions and a relatively short payback period for investments. Therefore, the implementation of a CGU is an effective tool for modernizing the boiler house and increasing its reliability, efficiency and autonomy in modern conditions of Ukraine.

The purpose of the project

Main goal:

Introducing innovations and energy-efficient solutions

Secondary goal:

Contribution to climate or environmental goals, Increasing compliance with modern standards, Increasing compliance with modern standards, Improving the quality of services

Description of the purpose of the project and ways to achieve it

The main goal is to increase the energy efficiency and reliability of the facility's heat supply by implementing a cogeneration plant that provides simultaneous production of electricity and heat. Additional goals: • reducing energy costs; • increasing energy independence; • reducing environmental impact; • ensuring stable operation in conditions of possible power outages; • upgrading outdated equipment. Ways to achieve the goal 1. Technical modernization o Installation of a gas-piston cogeneration plant with a capacity of 160 kW. o Integration of the CHP into the existing heat supply system. o Automation of control and monitoring processes. 2. Optimization of energy consumption o Covering own electricity needs through generation. o Use of secondary heat (from the engine and exhaust gases). o Reducing peak loads on the power grid. 3. Economic measures o Reducing electricity purchase costs. o Rational use of natural gas. o Optimization of operating modes depending on the heat load. 4. Organizational measures o Conducting an energy audit. o Preparing a feasibility study. o Training personnel and implementing scheduled maintenance.

Problems and solutions resulting from project implementation

Installing a cogeneration unit allows you to solve key problems of energy supply of the boiler house - reduce costs, increase gas efficiency and ensure the stability of the facility's operation in conditions of energy instability. This is a comprehensive solution that combines economic, technical and social effects.

Socio-economic context

Indicator

Value

Number of IDP users

450 human

Number of people who will use the service

14483 human

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

District Heating

Stream

Restoration, modernization and development of centralized and decentralized heating systems

Strategic document

Стратегія розвитку територіальної громади

Task

A.1.3 Modernization of the community heating system

Project objectives

Project objectives were not specified by the initiator

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Оцінка попиту здійснювалася на основі фактично використаних обсягів енергоресурсів
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the demand forecast take into account the latest demographic and economic forecasts?

No
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
14933 human
Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project provide for improving women's access to services?

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to education (primary, secondary, vocational)
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Documents

Name
Date
Economic analysis.docx
05.03.2026
15:19:12 UTC

Alternative technical solutions

Technical Solution 1

Reconstruction of the boiler house by installing a 160 kW cogeneration gas plant for the production of heat and electricity at the address: 17-A Starosvitska Street in Myrhorod, Poltava Region

Technical Solution 2

Installation of high-efficiency gas boilers

Total costs30'779'362 UAH0 UAH
  • For preparation
  • 487'595 UAH0
  • For implementation
  • 8'235'507 UAH0
  • For operation
  • 22'056'260 UAH0
    Average annual costs1'102'813 UAH0 UAH
    Project duration, incl.9 months0 months
  • Deadline for developing a FFS
  • 7 months0 months
  • Implementation period
  • 2 months0 months
    Service life240 months0 months
    Target indicatorsDefined Not defined
    Technical Solution Status
    Active

    [The technical approach was selected for further detailed analysis or implementation.]

    Pending

    [The project initiator has not taken any decision about this alternative technical approach.]

    Components of a technical solution
    To components
    0
    To components
    0

    Commercial Justification

    Supplier and contractor market assessment

    Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Is the project of interest to small and medium-sized enterprises?
    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Will the project involve national or international suppliers and contractors?
    Yes, both national and international

    [Response was provided in the Preliminary Investment Feasibility Study]

    Has an analysis of available procurement options been conducted for the technical solution?
    No

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial justification

    Total project budget

    Total preliminary budget30'779'362 UAH0 UAH
    Capital costs30'779'362 UAH0 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation487'595 UAH0 UAH
    For implementation8'235'507 UAH0 UAH
    For operation22'056'260 UAH0 UAH
    For closing0 UAH0 UAH
    Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
    Yes
    [Response was provided in the Preliminary Investment Feasibility Study]
    Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
    Yes
    [Response was provided in the Investment Feasibility Study]

    Average project cost per service recipient

    Service Unitна одну особу споживача
    Service Unit Cost603 UAH

    Profitability of the project

    Is the project expected to generate income?NoNo

    Availability of services

    Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
    No – analysis not performed

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project Financing Mechanisms

    Are funding sources and mechanisms identified?

    Source and MechanismYesNo

    Funding Sources

    Public-private partnership

    Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
    No, no assessment was conducted.

    [Response was provided in the Preliminary Investment Feasibility Study]

    Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
    No

    [Response was provided in the Preliminary Investment Feasibility Study]

    Results of the feasibility analysis
    Project Preparation Program Engagement and Funding Needs

    Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?

    None of the options are applicable

    Project Approval History

    DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
    06/03/2026SP-L-060326-3EC9BA9ACommunity SPInvestment Feasibility StudyIncludeRecommended to include in a sectoral portfolio-
    11/03/2026SPP-L-110326-F984DEC3Community SPPInvestment Feasibility StudyIncludeIt is recommended to include the community in a single project portfolio.88