The Chernivtsi City Council and JSC “Energy Company of Ukraine” (ECU) have initiated a collaborative effort to strengthen the city’s energy security. The aim is to create sustainable technical and economic conditions for implementing and operating distributed generation in Chernivtsi. This includes both existing cogeneration units and new projects for producing electricity and heat to meet local needs.
Currently, the municipal enterprise “Chernivtsiteplokomunenergo” operates the city’s first 1.5 MW gas-fired cogeneration unit, which provides backup power for a boiler house supplying heat to residents.
ECU experts have developed a comprehensive financial and economic model designed to improve the technical, operational, and commercial efficiency of cogeneration units. This approach not only enhances the reliability of Chernivtsi’s heat and power supply but also makes it more economically advantageous for the community.
The solution will be implemented through an aggregated group mechanism, allowing professional management of energy assets using extensive analytical data. ECU manages one of Ukraine’s first aggregated energy groups.
At a recent working meeting at the Chernivtsi City Council, discussions included ECU’s role as a distributed generation operator for commissioning a second cogeneration unit and plans for other energy projects, including solar power plants and energy storage systems.
“Energy security is a top priority for the Chernivtsi administration. ECU has proposed a new market-driven partnership model that enhances reliability and sustainability of energy supply while delivering economic benefits to the community,” said Roman Klichuk, Mayor of Chernivtsi.
Vitaly Butenko, CEO of ECU, added: “Our strategy is to ensure reliable and affordable energy for Chernivtsi’s community without increasing local budget costs. Using modern market methods, we aim to provide stable and economically beneficial energy supply for Ukrainian communities.”
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JSC “Energy Company of Ukraine” is a national energy supplier and a leading trader of electricity, including import and export. ECU established Ukraine’s largest state balancing group and ranks among the top two off-takers of green electricity. Its clients generate 10% of the country’s GDP.
As a distributed generation operator, ECU partners with communities and businesses to enhance energy security and operational efficiency.
The concept of an Operator of Distributed Generation was developed by ECU and approved by Ukraine’s National Security and Defense Council in August 2024 as part of the country’s Distributed Generation Development Strategy through 2035 (Cabinet of Ministers’ Order No. 713-r, July 2024).
ECU is fully state-owned and managed by the State Property Fund of Ukraine.
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