The European Bank for Reconstruction and Development (EBRD) will provide €30m to modernize district heating sector in the city of Lviv, Ukraine, a move to boost energy efficiency.

Of the total funding, around €20m is being provided in the form of EBRD loan, while the remaining is a grant funding of about €10m from the Eastern Europe Energy Efficiency and Environment Partnership.

The funds will be employed in the introduction of individual heating substations, the rehabilitation and modernization of heat distribution networks, the installation of natural gas fired mini-combined heat and power plants, the replacement of obsolete main transmission pipelines and the installation of necessary monitoring systems.

Through this project, the municipality of Lviv is expected to reduce the consumption of natural gas by 6.9 million cubic meters, electricity by 2,900MWh and water by 15,900 cubic meters, CO2 emissions by around 80,000 tons annually.

Currently, EBRD had committed over €8.63bn through 337 projects in Ukraine.