Sustainable Heating in Eastern Europe and Central Asia

Organization: DHInfrastructure


The World Bank wanted assistance in completing two chapters of a regional report to develop an analytical framework to support countries in Eastern Europe and Central Asia to develop sustainable heating roadmaps and inform the Bank's future policy and investments programs to support sustainable heating. For the first chapter, on district heating, the World Bank wanted to assess the status of district heating utilities, develop key performance indicators (KPIs) to categorize them, and develop recommendations to determine how each group could transition to more sustainable service providers. For the second chapter, on assessing levelized costs of heating (LCOH), the World Bank wanted to identify technological options for the transition to sustainable heating in selected locations and assess the LCOH of existing and sustainable heating supply technologies in each location.

Service Provided

For the district heating chapter, DHInfrastructure developed a short-list of financial and technical KPIs and developed a utility questionnaire to collect data to calculate the KPIs. We collected data, analyzed utility financial statements, and developed an Excel database to calculate the KPIs and assess utility performance for selected utilities in Bulgaria, Kyrgyzstan, Poland, and Serbia. We developed a scoring methodology based on the KPI results to group utilities into four categories (ranging from good performance on both financial and technical KPIs to poor performance on both). We made recommendations for how each group of utilities could improve performance and become more sustainable. For the LCOH chapter, DHInfrastructure developed data collection instruments for local consultants in Armenia, Kyrgyzstan, Poland, Serbia, Türkiye, and Uzbekistan who provided data on residential building stock and heating technologies. We built models for each country to assess the financial and economic LCOH of each heating technology being used and sustainable alternatives to those technologies. We also conducted sensitivity analyses on improved energy efficiency in buildings and on changes in fuel and technology prices.