Kaliningrad Distrit Heating Rehabilitation

Inefficient district heating networks consume energy that could be channeled to other productive uses, such as manufacturing or commerce. This project aims to rehabilitate the city of Kaliningrad’s district heating network through the introduction of commercially-viable energy efficient practices and infrastructure.  The project will have significant environmental benefits, particularly in the reduction of greenhouse gas emissions and heat loss.

The project’s investment programme will introduce metering mechanisms which will allow consumers to control their consumption and permit billing in line with actual consumption. Service levels – and the service’s long-term commercial viability – will improve. Tariffs will be set at cost-reflective levels and the subsidy system will be reformed. A social safety net scheme will be introduced for lower income groups.

The main steps of the investment programme include:

  • Replacing network sections where water and thermal losses are excessive with pre-insulated pipes.
  • Upgrading existing heat-only boilers by installing control and automation systems.
  • Replacing large, wasteful central heat sub-stations with individual compact sub-stations and converting the current four-pipe network systems to a two-pipe ones.
  • Decommissioning several inefficient coal-fired boilers and installing gas-fired boilers or merging them with the centralised district heating networks instead.

The project also includes an institutional development programme, which will spearhead corporate development activities and provide implementation support through a SIDA-funded corporate partner.

Environmental Benefits

  • CO2 emissions will be reduced by minimum 40,000 tonnes/year.
  • SO2 emissions will be reduced by 400 tonnes/year.
  • NOx emissions will be reduced by 140 tonnes/year.
  • Ambient air quality in Kaliningrad will be improved by 5-10 per cent.
  • All investment will aid in in reducing greenhouse gas emissions associated with excessive fuel consumption.

At a glance

Water and waste treatment
Kaliningrad Teploset
Grant agreement signed:
Project status:
Implementing IFI:


National Funds

  • Kaliningrad City
  • €500,000

IFI Loans

  • EBRD
  • €12,000,000

NDEP Grant

  • TC
  • €800,000
  • Investment
  • €6,500,000

Other Grants

  • SIDA
  • €1,700,000
  • EU Tacis
  • €300,000
  • Total
  • €21,800,000


  • Jane Kieran
  • EBRD
  • One Exchange Square
    EC2A 2JN
  • Tel: +44 20 7338 6843
  • Email: kieranj@ebrd.com