Status of municipal heat supply in Ukraine: challenges and solutions from the bottom up
Usenko, Savytskyi, Mikhnych
May 2025
The heating sector in Ukraine consists of centralized, decentralized, autonomous, and individual heating. War damage and aging infrastructure has led to a degradation in the entire heating structure, requiring investments and upgrades to the system towards a
centralized structure. Furthermore, the aging infrastructure has been exacerbated by frozen energy price tariffs since the start of the full-scale invasion in 2022, providing a limited revenue to companies and eliminating the financial incentive for firms to maintain a long term outlook by investing in the infrastructure.
Removing this tariff cap will create business opportunities for new firms during the post-war reconstruction, as well as promoting long
term investment in infrastructure from existing companies.
