Odessa has allocated 5 billion to cover heating costs

Odessa has updated its municipal energy efficiency program for 2022–2029, allocating a total budget of 32.81 billion hryvnias. Starting in 2026, the largest portion of the expenditures is to be directed toward modernizing the city’s heat supply system and ensuring its energy security.

The Center for Public Investigations examined the details of the program.

The relevant order was signed by Serhiy Lysak, head of the Odesa City State Administration. The document provides for an update to the program’s funding and list of measures.

Of the 32.81 billion hryvnias, 6.39 billion are to come from the budget of the Odesa City Territorial Community, 629.5 million from the state budget, and 10.6 million from the regional budget. Another 25.78 billion hryvnias are planned to be raised from other sources, including international technical assistance and the enterprises’ own funds.

The bulk of the funding is allocated for 2026–2029—approximately 27.17 billion hryvnias.

One of the main priorities is the modernization of the district heating system. A total of 12.58 billion hryvnias has been allocated for the technical modernization and improvement of energy efficiency in municipal utilities, including over 5.82 billion for the modernization of the district heating system.

Over 3.72 billion hryvnias have been allocated for the reconstruction of heating networks. An additional 943.4 million hryvnias are to be directed toward energy-efficiency measures by the municipal enterprise “Odesa City Heating.” The program also calls for the reconstruction of boiler houses, the restoration of thermal insulation on the networks, and the decommissioning of ten small boiler houses.

The largest share of funding went to energy security—over 20.17 billion hryvnias. The funds are to be used, in particular, for backup power supplies, generators, cogeneration units, and the modernization of transformer substations.

The program also includes 5.15 billion hryvnias to reimburse costs for centralized heating and heat supply, as well as to support the stable operation of heat supply companies. 

Odesa also plans to secure a 25-million-euro loan from the EBRD to modernize its heating infrastructure. However, the final decision on financing and the terms of the loan will be made only after a technical audit and the bank’s approval of the project.

Анна Літман