Subject and goals of the project

Energy costs are a significant cost factor in Ukrainian water companies. At the Lvivvodokanal water company, energy accounts for 51 % of operating costs. As a result, there is high pressure to reduce these energy costs. Given the low funds available for investments, non-investment measures are therefore used to reduce consumption. Although these reduce energy consumption, e.g. by reducing the pumping capacity of the oxygen aerators in the aeration basins, they increase water pollution as a result of inadequate wastewater treatment. Thus, the use of energy consumption reductions that can be achieved through easily delimited investments does not lead to a reduction in direct environmental pollution.

Ukrainian tariff law has been reformed in several ways in recent years. The possibility of realizing energy savings contracting in the water sector has also been introduced in principle in Ukrainian law. However, there are no implementing regulations, so that it is currently not possible to actually use this option. The issues to be clarified are the valuation and remuneration of energy savings in line with tariffs and the form in which cost reductions from reduced energy consumption can remain in the company. The advantages of energy savings contracting from the user's point of view are the avoidance of own investments, the reduction of energy costs, the increase of energy efficiency, the contribution to climate protection, the benefit of the contractor's expertise and experience.

The project includes the detailed analysis of the legal framework and the identification of an interesting use case in the Lvivvodokanal company in terms of energy savings potential, as well as descriptions of the technical options for energy savings. Within the framework of a specific use case, the company Lvivvodokanal is the contractor. A preliminary analysis shows that projects shortlisted for a contracting solution in Lvivvodokanal include the following:

• Air compressors in wastewater treatment plant: replacement with equipment with higher energy efficiency; expected energy savings: 20 – 40 %
• Largest pumping station (capacity of 1.5 MW): modernization; expected energy savings: 15 – 25 %
• Installation of electric frequency controllers in most of the pumping stations; expected energy saving: 20 %
• Modernization of outdated heating system for head office and main base (70 % of the heat demand); expected energy savings: 30 %

Special aspects of the project

The pilot project can make a significant contribution to establishing new financing instruments for energy-saving investments for the water sector in Ukraine, which are already established in Germany from the user's point of view, and thus to eliminating regulatory risks.

The pilot investment itself is not the subject of the project; this will be realized by a private investment to be selected. Thus, the support from the DBU does not replace any compulsory state task, but refers exclusively to efficient capacity development in the field of energy savings contracting, which will be made available to the general public in the form of a guide and sample documents.

Funding subject: Renewable energy, energy conservation and energy efficiency

Cooperation partners:

• DREBERIS GmbH, Dresden
• DREBERIS TOV, Lviv (Ukraine)

Associated partners:

• Ukrvodokanalekologija, Kyiv (Association of municipal water suppliers in the Ukraine)
• Lviv Communal Enterprise „Lvivvodokanal“ (LVK) (the municipal water/wastewater company in the city of Lviv)
• Stadtentwässerung Dresden GmbH (SEDD), Dresden (exchange of experience)

Locations: Lviv, city in the west of Ukraine, about 70 km from the Polish border

Funding period: July 2020 to July 2022

Project costs: Total volume: 190 666 Euro, DBU funding: 123 932 Euro

DBU-AZ: 35549

Note: Translation of the German version with DeepL

Last updated: 15.11.2021