The main goal of the project is to increase the energy sustainability, autonomy and efficiency of the heat supply system of the city of Zlatopil by installing cogeneration units (CGU) at six strategically important boiler houses to meet its own needs for heat and electricity. The project is aimed at: • reducing the dependence of the heat supply system on centralized electricity supply; • ensuring uninterrupted heat supply to the residential sector and social infrastructure facilities even in conditions of energy crises; • reducing the operating costs of the heat supply enterprise through the use of self-generated electricity; • increasing the energy efficiency and environmental sustainability of the system; • creating conditions for sustainable development of urban infrastructure. Methods of achieving the goal (implementation mechanisms) To achieve the goal, a set of measures of a technical, organizational and financial nature is envisaged, covering the entire cycle of preparation, implementation and commissioning of cogeneration units: 1. Preparatory stage • Conducting technical inspections of boiler houses to determine the locations of cogeneration units. • Development of design and estimate documentation for the installation and integration of the CHP into existing heat supply and power supply systems. • Obtaining the necessary permits, approvals and expert opinions. 2. Infrastructure stage • Carrying out construction and installation work to prepare premises and sites for equipment installation. • Installation, connection and adjustment of cogeneration units. • Integration of the CHP into the existing boiler house control system (automation, dispatching). • Carrying out commissioning work and training of personnel. 3. Organizational and economic stage • Development of a model for the operation and maintenance of the CHP (operational instructions, maintenance regulations). • Optimization of the energy balances of boiler houses, taking into account the generation of their own electricity. • Implementation of a system for monitoring the efficiency and saving of energy resources. • Popularization of the implementation experience among other communities and potential investors. Justification of the existing gap between the current state and the target level: 1) Current state. - Complete dependence of boiler houses on external power supply. In the event of a power outage - complete shutdown of work; - Outdated equipment with low efficiency, large heat losses; - High costs for electricity and fuel; limited local budget resources; - High CO₂ emissions and energy losses during transportation; - System operation is at risk in the event of a power outage. 2) Target state (after project implementation). - Boiler houses partially or fully provide themselves with electricity thanks to cogeneration plants; - Increase in the overall energy efficiency of the system by 15–20% due to combined heat and power generation; - Reduction of operating costs due to own energy supply; - Reduction of emissions and increase in environmental friendliness of production; - Guaranteed heat supply regardless of the state of the power grids. Expected effect of the project implementation • Ensuring energy independence of the city's six main boiler houses. • Reduction of electricity consumption from the network by 30–40%. • Increase in fuel utilization ratio from 70% to over 90%. • Reduction of energy and maintenance costs by approximately 15–20% each year. • Reduction of greenhouse gas emissions and increase in environmental compliance of the city's infrastructure. • Increase in the city's resilience to energy crises and emergencies.

Key problems to be solved by the project 1. High energy dependence of the heat supply system The essence of the problem: All city boiler houses are completely dependent on centralized power supply. During planned or emergency power outages, the operation of pumps, automation and control systems stops, which leads to the cessation of heat supply to consumers. Relevance: In conditions of frequent power outages caused by energy attacks, electricity shortages or network damage, ensuring the autonomy of heat supply is a matter of community safety. Consequences of failure to solve: • Complete or partial cessation of heat supply in the autumn-winter period. • Disruption of the work of schools, kindergartens, hospitals. • Social tension and the risk of emergencies. Expected positive changes: Installation of cogeneration units will ensure autonomous generation of electricity at boiler houses, will allow maintaining the operation of equipment even in the event of a power outage, will reduce the risks of heat outages and increase the energy security of the city. 2. Outdated equipment and low energy efficiency The essence of the problem: Most boiler houses were built more than 30 years ago, their equipment has significant physical and moral wear and tear. The average efficiency of boilers is 70–75%, which leads to fuel overconsumption and high operating costs. Relevance: High energy prices, limited local budget resources and the need to reduce emissions require optimizing energy consumption. Consequences of failure to resolve the issue: • Further increase in fuel and maintenance costs. • Decrease in system reliability. • Inability to meet modern environmental and technical standards. Expected positive changes: The use of cogeneration plants will increase the overall energy efficiency ratio to 90–92%, reduce gas consumption, heat losses and CO₂ emissions, and ensure budget savings. 3. High operating costs of the heat supply enterprise The essence of the problem: Electricity and fuel costs make up the largest share of the cost of heat energy. Due to inefficient generation and outdated technologies, the enterprise is forced to increase tariffs or operate at a loss. Relevance: Economic instability and increased energy tariffs increase the financial burden on utility companies and the population. Consequences of failure to resolve the issue: • Increase in heat tariffs. • Increase in consumer and enterprise debts. • Risk of loss of solvency of the heat supply organization. Expected positive changes: Thanks to its own electricity production, it is expected to reduce operating costs by 15–20%, stabilize the financial condition of the enterprise, and reduce tariff pressure on the population. 4. Risks of disruptions in the provision of socially important services The essence of the problem: The social infrastructure of the city (schools, kindergartens, hospitals, cultural institutions) is completely dependent on centralized heating. Loss of heat during the cold period can pose a threat to the health and safety of residents. Relevance: In conditions of martial law, increasing energy risks, and climate challenges, communities must ensure the uninterrupted functioning of critical infrastructure. Consequences of failure to resolve the issue: • Disruption of the educational process, medical services, and the work of shelters and care facilities. • Social tension among the population. Expected positive changes: Cogeneration plants will create backup sources of energy supply, which will ensure uninterrupted provision of services even in crisis situations. 5. Low level of environmental sustainability and use of modern technologies The essence of the problem: The city's heat supply system does not meet modern requirements of environmental safety and EU climate policy. High CO₂ emissions, inefficient energy use and the absence of renewable components in heat production worsen the environmental situation. Relevance: Ukraine is moving towards green transformation and integration into the European energy market, which requires modernization of the municipal energy sector. Consequences of failure to resolve the issue: • Loss of opportunities to participate in international support programs. • Increased environmental burden on the city. Expected positive changes: The implementation of the project will contribute to reducing harmful emissions, reducing natural gas consumption, increasing energy efficiency and bringing the city closer to "green" energy management standards. Summary The implementation of the project will allow: • to ensure the sustainability of the heat supply of the city of Zlatopil even in conditions of energy crises; • to reduce energy costs and stabilize tariff policy; • to reduce the environmental impact of the heat generation system; • to increase the level of energy security of the community and its preparedness for emergencies; • to create a modern, energy-efficient and environmentally friendly heat supply system focused on people's needs.