Odesa invested 32 million in the construction of a power plant

Odesa has approved an investment program for Odesa City Heat Supply for 2025-2026. The company plans to spend over UAH 32 million on a new cogeneration plant.

The decision was made at a session of the Odesa City Council.

The deputies approved the investment program for the municipal enterprise "Heat Supply of Odesa" for the period from October 2025 to September 2026. The program envisages modernization of the heat supply system and construction of a new power plant based on cogeneration units.

The main goal of the program is to make the city's energy supply more reliable and independent, reduce the cost of heat generation and generate additional revenue from electricity sales.

It is planned to install two new units with an electric capacity of 3.3 MW and a thermal capacity of 3.5 MW each. Together, they will provide the city with 6.6 MW of electricity and 7 MW of heat. The new system is expected to be launched in January 2026 at the Severna-2 RC.

According to the draft decision, the program includes all stages: from project development to construction of a distributed power generation system. The project's efficiency was assessed by two indicators: fuel savings in heat production and profit from electricity sales.

More than UAH 32 million was allocated for the program. Part of the funds (UAH 22.2 million) will come from depreciation charges already included in heating tariffs, and the rest will come from the company's profit.

The program was developed based on the Odesa Energy Security Concept for 2023-2028 and the Memorandum with the United Nations Development Program. It will allow the city's energy sector to switch to more modern, efficient technologies, reduce costs and increase the reliability of heat supply for Odesa residents.

MP Petro Obukhov asked how the savings will be made and how the plants will operate. MP Hanna Pozniakova replied that currently only Odesa and Kyiv are planning to make money from energy production, and that this could bring some income to the city. But it is not yet known how much income this can bring, because they are now waiting for a new gas price from the Cabinet of Ministers. Only then will the utility company be able to bring the issue of gas purchases to the session. One of the deputies noted that it was possible to buy gas in the summer at a different price, save 20 million and provide it to the Armed Forces.

MP Olha Kvasnytska also asked how the plants would be used outside of the heating season and where the actual heated area could be found. Valeriy Ivanov, the company's director, replied that the plants would operate in the summer to generate electricity and that all the relevant certificates had been received from environmental agencies.

Thirty-eight deputies voted in favor, 8 did not vote, and the decision was passed.

In April, the municipal enterprise"Heat Supply of Odesa" did not receive state funding to launch cogeneration units that were supposed to provide its own electricity generation in the city. According to Valerii Ivanov, the director of the utility, the project requires UAH 200 million 750 thousand, but at the time, they discussed the possibility of allocating only UAH 60 million from the city budget for the first stage of work.

Анна Бальчінос