Energy saving measures. Reconstruction of the boiler house "PivnGZK No. 2" with the installation of a cogeneration gas piston unit at the address: 50000, Ukraine, Dnipropetrovsk region, Kryvyi Rih, Volodymyr Cherkasov Street, 31K


Sector
Municipal infrastructure and services
Stream
Development and rehabilitation of municipal infrastructure of subnational governments
Maturity level
78
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion

General information

Description of the project

The working project, as an energy saving measure, envisages the installation of a cogeneration gas piston unit (CPU) of the AVUS 500plus type - a complete set of equipment for the combined production of electricity and heat by burning natural gas. The cogeneration unit (CPU) is designed to meet the boiler house's needs for electricity, both in emergency mode when the external power supply disappears, and in normal operation. This facility is a complex of engineering structures for generating thermal energy from a boiler room and transmitting it to the end consumer. The AVUS 500plus gas-piston cogeneration plant is a finished product supplied by the manufacturer in a fully equipped form with all technological, construction and fire protection systems. This project does not develop the internal systems and equipment of the CHP. It is planned to connect the CHP to the gas, heat and electricity supply networks. The nominal electrical capacity of the CHP is 600 kW, voltage class 0.4 kV, frequency 50 Hz. The total thermal capacity of the CHP is 639 kW. Volumetric flow rate of natural gas is 139.1 m3/h.
The containerized CHP is installed outside on the site within the territory of the boiler house. Communication outlets – through the walls of the container. Flue gas is discharged into a complete flue pipe, 10.5 m high. Natural gas is used to produce electricity and heat, which is supplied to the CHP via a designed pipeline from the existing gas pipeline with a regulator installed to reduce the pressure to the calculated one. Thermal energy is utilized during CHP operation by heating the coolant of the return pipeline of the boiler house's heat network through a heat exchange module.
This working project provides for the reconstruction of the RP-6kV electrical networks of the boiler house "PivnGZK No. 2":
- replacement of 16 RP-6kV TP-7 6/0.4kV KSO cells with 14 MVC cells. with vacuum circuit breakers with a rated current of 1250A;
- replacement of panels Shcho-90 TP-7 6/0.4kV - 11 pcs. with 18 pcs. PowerLine-1000 panels (low-voltage complete device) with automatic circuit breakers with electronic
disconnector;
- for the needs of RP-6kV, installation of a self-service switchboard (ShVP-RP with ATS) individually manufactured is provided.

A transformer substation building has been designed for installation of power transformers. The degree of fire resistance of the building – II. 

The cogeneration unit (CHP) is designed to meet the boiler house's electricity needs, both in emergency mode when the external power supply disappears, and in normal operation.
To increase the useful effect of the CHP operation, it is planned to use the thermal energy released from the CHP to heat the return network water.
CHP characteristics:
Nominal electric power 600 kW, voltage class 0.4 kV, frequency 50 Hz;
Total thermal power 639 kW.
Equipment composition:
1. The container-type external cogeneration unit is installed on the street, on the side of axis A of the existing boiler house, on one foundation plate with a cooler.
2. The MT-639 type heating module is installed on the street, on the A axis of the existing boiler house.

Ensuring reliable and energy-efficient heat supply to consumers using modern technologies;
reducing natural gas consumption by introducing cogeneration of heat and electricity;
optimizing costs for fuel and energy resources and reducing operating costs;
reducing the negative impact on the environment by reducing emissions of greenhouse gases and harmful substances;
increasing energy independence and reducing the load on city electricity networks;
creating a modern, reliable and sustainable heat supply system that meets the requirements of energy saving and sustainable development.

The purpose of the project

Main Goal:

Improving the quality of services

Secondary Goal:

Capacity building, Contribution to climate or environmental goals, Increasing compliance with modern standards, Improving the equality of wealth distribution, Increasing the even distribution of resources, Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions, Meeting demand

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

1.1. Project Objective The project objective is to increase the energy efficiency, reliability and economic efficiency of the heat supply system by reconstructing the PivnGZK No. 2 boiler house with the introduction of a cogeneration gas piston unit (GPU), which will ensure the simultaneous production of electricity and heat with a high fuel efficiency. The project is aimed at reducing natural gas consumption, reducing electricity purchase costs, increasing the energy autonomy of the facility and reducing the environmental load. 1.2. The main objectives of the project implementation of cogeneration technology with an overall efficiency of up to 85–92%; modernization of existing boiler equipment; optimization of thermal and electrical loads; implementation of an automated process control system; reduction of specific fuel and energy resources costs; ensuring the stability of heat supply in conditions of unstable energy supply. 2. Analysis of the current state and justification of the need for project implementation 2.1. Current technical state At the time of the development of the feasibility study, the boiler house operates according to the traditional scheme of producing exclusively thermal energy using natural gas. Electricity to meet its own needs is purchased from the external network. The existing system is characterized by: lack of its own electricity generation; lack of utilization of secondary heat; physical and moral wear and tear of individual equipment elements; increased specific fuel consumption; limited possibilities for automatic regulation of operating modes. 2.2. A gap has been identified between the current and target states Technological gap: lack of combined energy production; low fuel energy utilization rate (≈50–60%); lack of modern automation systems. Energy gap: significant natural gas consumption per unit of energy produced; 100% dependence on external electricity suppliers; the presence of network electricity losses. Economic gap: high operating costs; increasing electricity tariffs; lack of mechanisms for compensating peak loads. Environmental gap: increased specific CO₂ emissions; irrational use of fossil fuels. Thus, the existing energy supply model does not meet modern requirements for energy efficiency, economic feasibility and energy security. 3. Description of methods for achieving the project goal 3.1. Technical solutions 3.1.1. Installation of a cogeneration gas piston plant It is planned to install a GPU, which will ensure: electricity generation to cover the facility's own needs; utilization of exhaust gas heat; use of engine cooling system heat; connection to the existing boiler house thermal scheme. The expected overall efficiency of the plant is up to 90%. 3.1.2. Modernization of boiler equipment implementation of weather-dependent regulation; installation of frequency converters on pumping equipment; automation of combustion processes; optimization of boiler cascade operation. 3.1.3. Implementation of automation and dispatching system automated process control system (ACS); monitoring of electricity and heat generation; gas consumption control; optimization of equipment operating modes. 4. Expected results of project implementation As a result of project implementation, it is planned to: increase the fuel efficiency to 85–92%; reduce natural gas consumption by 15–25%; reduce electricity purchase costs; reduce CO₂ emissions by 15–30%; increase the reliability and continuity of heat supply; reduce the investment payback period to 3–5 years (depending on the operating mode). 5. Socio-economic significance of the project The implementation of the project will ensure: increasing the energy sustainability of the facility in conditions of martial law and unstable energy supply; reducing the financial burden on the enterprise/budget; creating additional jobs during the project implementation; compliance with state policy in the field of energy efficiency; reducing the environmental impact on the environment. 6. Conclusion The reconstruction of the boiler house "PivnGZK No. 2" with the installation of a cogeneration gas piston unit is a technically sound, economically feasible and socially significant investment project. The project allows to eliminate the existing technological and energy gap between the current state of the heat supply system and modern requirements for energy efficiency, ensure the stability of energy supply and create long-term savings of budget funds.

Problems and solutions resulting from project implementation

Key problems and their relevance Reconstruction of the boiler house "PivnGZK No. 2" (Kryvyi Rih) is due to the presence of the following problems: Low energy efficiency - separate production of heat and electricity provides an efficiency of only 50-60%, which leads to overspending of natural gas. Complete dependence on external power supply - the lack of own generation increases the risks of outages and financial costs. High operating costs - significant funds are spent on the purchase of electricity and fuel. Equipment wear and insufficient automation - limited opportunities for optimizing operating modes and increased risk of accidents. Increased environmental load - higher specific CO₂ emissions due to low efficiency. Relevance of problems Problems are especially relevant in the conditions of: increasing cost of energy carriers; instability of energy supply; increasing requirements for energy efficiency and environmental friendliness. If they are not resolved, further cost increases, technical risks, and reduced reliability of heat supply are possible. Expected positive changes The implementation of the project will allow: to increase efficiency to 85–92%; to reduce gas consumption by 15–25%; to reduce electricity costs; to increase energy autonomy; to reduce CO₂ emissions. The project will ensure economic, energy, and environmental stability of the facility.

Socio-economic context

Indicator

Value

Number of people who will use the service

12998 human

Other functional

174.4 MW

Number of employees of the institution/institution/organization

25 human

Other functional

86479077600 m3

Number of jobs, including for IDPs

29 human

Other functional

639 kW

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Development and Reconstruction of Subnational Infrastructure

Stream

Development and rehabilitation of municipal infrastructure of subnational governments

Strategic document

Стратегія розвитку територіальної громади

Task

1.5.2; 4.4.1; 3.4.4; 1.4.2; 4.5.1. Formation of a capable network of healthcare institutions of all levels (including the creation of rehabilitation departments); Elimination of the consequences of the Kakhovka HPP dam explosion; Creation and development of investment / innovation projects / products; Development of innovation laboratories / incubators; Development and improvement of the street and road network of the Kryvyi Rih Metropolitan Municipality with barrier-free access

Project objectives

Indicator
Base value
Target value
Boiler room capacity
174.45 MW
175.08 MW
Thermal capacity of CHP
0 kW
630 kW
Electric power of CHP
0 MW
0.6 MW

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Підприємство КПТМ "Криворіжтепломережа" є монополістами у наданні послуг. Беруться архівні дані споживання.
[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
85908211200 m3
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

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

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

Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?

No
[Response was provided in the Investment Feasibility Study]

Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?

Conducting an EIA is not required.
[Response was provided in the Investment Feasibility Study]

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]

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

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

Were consultations held with representatives of target groups to take into account gender equality issues in the project?

No consultations were held with target groups.
[Response was provided in the Investment Feasibility Study]

Have the gender risks and social impacts of the project been assessed?

None of the options are applicable

Are there management and institutional mechanisms in place to ensure gender equality?

Not provided for by the project
[Response was provided in the Investment Feasibility Study]

Documents

Name
Date
_____16-3313-03-26_ex01_2826-6702-5216-4338_20260313123702__________2[224850].pdf
06.04.2026
10:33:48 UTC
Justification of the selected sources and mechanisms of financing of the North-Eastern Mining and Processing Plant.docx
16.04.2026
12:45:05 UTC
Calculations_for_the_input_of_Northern_Mining_Ground_2_KGU_rest.xlsx
19.04.2026
08:02:20 UTC

Alternative technical solutions

Technical Solution 1

Energy saving measures. Reconstruction of the boiler house "PivnGZK No. 2" with the installation of a cogeneration gas piston unit at the address: 50000, Ukraine, Dnipropetrovsk region, Kryvyi Rih, Volodymyr Cherkasov Street, 31K

Technical Solution 2

Energy saving measures. Reconstruction of the boiler house "PivnGZK No. 2" with the installation of a solar power plant (SPP) and storage tanks at the address: 50000, Ukraine, Dnipropetrovsk region, Kryvyi Rih, Volodymyr Cherkasov Street, 31K

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)151'957'294 UAH35'000'000 UAH
For preparation4'087'170 UAH1'500'000 UAH
For implementation147'870'124 UAH33'500'000 UAH
Project operation and closure cost188'729'912 UAH43'000'000 UAH
For operation188'729'912 UAH36'500'000 UAH
For closing0 UAH6'500'000 UAH
Average annual costs12'581'994 UAH0 UAH
Project duration, incl.8 months24 months
Deadline for developing a FFS2 months12 months
Implementation period6 months12 months
Service life180 months240 months
Target indicatorsDefined Defined
Technical Solution Status
Active

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

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Components of a technical solution
To components
1
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?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Для реалізації проєкту обрано стратегію комплексної закупівлі робіт із постачанням обладнання, монтажем, пусконалагодженням та введенням об’єкта в експлуатацію в межах одного предмета закупівлі. Доцільність такого підходу обґрунтована необхідністю забезпечення технічної сумісності обладнання, безперервності електропостачання лікарні як об’єкта критичної інфраструктури, чіткої координації робіт та єдиної відповідальності виконавця за кінцевий результат. З урахуванням наявності на ринку спеціалізованих компаній, здатних реалізовувати комплексні проєкти у сфері електроенергетичної інфраструктури, така стратегія є оптимальною як з технічної, так і з організаційної точки зору.

[Response was provided in the Investment Feasibility Study]

What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
Для забезпечення прозорості, конкуренції та ефективності у процесі закупівель планується застосування відкритих конкурентних процедур із використанням електронної системи ProZorro, що забезпечує публічність усіх етапів закупівлі та рівний доступ потенційних учасників. Тендерна документація формуватиметься з чіткими та недискримінаційними вимогами, а оцінка пропозицій здійснюватиметься за заздалегідь визначеними критеріями. Контроль якості закупівель та виконання договорів забезпечуватиметься шляхом технічного нагляду, поетапного приймання робіт і публічного звітування, а також внутрішнього контролю з боку замовника відповідно до чинного законодавства, що мінімізує ризики зловживань і забезпечує досягнення цілей проєкту.

[Response was provided in the Investment Feasibility Study]

What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
Попереднє залучення ринку здійснювалося у неконкурентному та недискримінаційному форматі з метою формування реалістичних технічних і організаційних підходів до реалізації проєкту. У межах підготовки проєкту проведено аналіз відкритих даних електронної системи ProZorro, зокрема результатів закупівель аналогічних проєктів у сфері енергетичної інфраструктури, що дозволило оцінити рівень конкуренції, типові технічні рішення та ринкові підходи до ціноутворення. Додатково використовувалися консультації з галузевими експертами та профільними спеціалістами, а також аналіз реалізованих в Україні та країнах ЄС схожих проєктів на об’єктах комунальної інфраструктури. Такий підхід дозволив узагальнити практики ринку, не створюючи переваг для окремих учасників, і сформувати вимоги до проєкту, що відповідають поточним можливостям ринку та забезпечують потенціал для ефективної конкуренції під час проведення закупівель.

[Response was provided in the Investment Feasibility Study]

Potential market participants
Під час підготовки проєкту були проведені неформальні консультації з представниками ринку у форматі загального збору інформації, без надання переваг окремим учасникам, з метою оцінки готовності ринку та типових підходів до реалізації проєктів реконструкції енергетичного обладнання відповідного масштабу. Результати аналізу та консультацій свідчать про високий рівень конкуренції на ринку: в Україні наявна значна кількість компаній, що спеціалізуються на проєктуванні, постачанні обладнання, будівництві та сервісному обслуговуванні енергетичного обладнання, а також міжнародних виробників і постачальників відповідного обладнання, які працюють через національних партнерів. Потенційними учасниками реалізації проєкту можуть бути національні та міжнародні постачальники обладнання, українські підрядні організації у сфері будівельно-монтажних робіт, а також інженерно-консалтингові компанії, що мають досвід супроводу енергетичних та інфраструктурних проєктів. Така структура ринку створює передумови для залучення широкого кола учасників і забезпечення реальної конкуренції під час проведення закупівель.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Ринок є високою мірою готовим до реалізації подібного проєкту. В Україні сформовано достатню кількість кваліфікованих підрядників і постачальників, які мають практичний досвід проєктування, будівництва та експлуатації електричних підстанцій відповідного масштабу, а також доступ до серійного обладнання і перевірених технологічних рішень. Трансформатори, вакуумні вимикачі, Силові роз’єднувачі та супутні компоненти є широко доступними на національному та міжнародному ринках, що мінімізує ризики постачання. Потенційні бар’єри мають переважно регуляторний та організаційний характер і пов’язані з дотриманням процедур підключення, землекористування та публічних закупівель, однак вони є стандартними для проєктів цього типу та не потребують застосування нестандартних рішень. Технічні та економічні ризики оцінюються як помірні та керовані, з урахуванням стабільності технологій та сформованої ринкової практики, що свідчить про загальну готовність ринку до ефективної реалізації проєкту.

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget340'687'206 UAH78'000'000 UAH
Project cost (preparation and implementation)151'957'294 UAH35'000'000 UAH
For preparation4'087'170 UAH1'500'000 UAH
For implementation147'870'124 UAH33'500'000 UAH
Project operation and closure cost188'729'912 UAH43'000'000 UAH
For operation188'729'912 UAH36'500'000 UAH
For closing0 UAH6'500'000 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 UnitСередня вартість проєкту на одного отримувача послуги або одиницю продукції
Service Unit Cost11'691 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

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

Approved Funds29'146'080 UAH0 UAH
Expected Funds29'146'080 UAH0 UAH

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]

Management Rationale

Team competencies

Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
None of the options are applicable
Does the team have experience implementing similar projects?
Yes, successfully implemented 1 or more similar projects

[Response was provided in the Preliminary Investment Feasibility Study]

Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
None of the options are applicable
Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project management structure defined: working group, chair, project team?
Yes

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
None of the options are applicable
Are there plans to involve experts and consultants for further implementation of the project?
No

[Response was provided in the Investment Feasibility Study]

Risk assessment

Technical riskDefinedUndefined
Financial riskDefinedUndefined

Organizational events

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

Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

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

None of the options are applicable

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

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

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

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
07/04/2026SP-L-070426-9913F83ECommunity SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
16/04/2026SP-L-160426-444D83C4Community SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
19/04/2026SP-L-190426-5C6D7071Community SPInvestment Feasibility StudyInclude--
23/04/2026SPP-L-230426-7E70DC04Community SPPInvestment Feasibility StudyInclude-78