Scope of the project. The project envisages the implementation of a public-private partnership in the field of electricity and thermal energy production in the city of Lviv, in particular, the modernization of gas piston units belonging to LMK “Lvivteploenergo”.

The project envisages the use of excess energy for cogeneration with the production of electric and thermal energy for sale on the energy market. The type of energy production will help meet the high peak demand and reduce the load on coal-fired thermal power plants, thus helping to improve the environment.

The goal of the project. Involvement of private investments in the activity and infrastructure of the municipal enterprises of the city. Increasing the profitability of LKP “Lvivteploenergo” and saving money from the city budget.

The role of the state partner in project implementation.

To successfully achieve the goals of the project, the city is ready to do the following:

• provide all peer reviews and research for the project;
• provide facilities for long-term use;
• facilitate public hearings.

Analysis of the problem that is solved during the implementation of the project. The installation of gas piston units at TPP-1 or TPP-2 will ensure more efficient use of energy resources (natural gas), the cost of which is constantly increasing, due to cogeneration with electricity production, including from excess heat due to heating of cold water for supplying hot water to the network Lviv is one of the few Ukrainian cities that supplies hot water to the central water supply in the summer. Involvement of a private partner will allow the use of appropriate technologies and investment resources. Funds from the sale of electricity are distributed according to the established formula based on technical and economic justification.

Sources of financing the project.

• Funds from the local budget are for the development of the PPP project.
• Funds from private investors – for the construction, operation and maintenance of facilities.

PPP Model: A PPP project based on user payments. The investor will receive the profit mainly through the sale of the surplus electricity produced.

Expected results.

• Modernization of gas piston installations and the corresponding infrastructure for the production of electric and thermal energy in Lviv
• Transfer of objects for maintenance to a private company
• Economy of the city budget

Property: communal

Public-private partnership project

The state partner is Lviv City Council

Project characteristics:

• modernization of gas piston turbines for the production of additional energy in the city;
• use of excess energy for cogeneration with the production of electric and thermal energy and its sale on the energy market.

Analysis of the problem:

• Installation of gas piston units will ensure more efficient use of energy resources (natural gas), the cost of which is constantly increasing, due to cogeneration with electricity production, including from excess heat due to heating of cold water for supplying hot water to the power grid. Funds from the sale of electricity are distributed according to the established formula based on technical and economic justification.

Project status: preliminary studies are underway.