Manual on Heat Supply Scheme Development 192 views

Manual on Heat Supply Scheme development


Energy Security Project is USAID project implemented by Tetra Tech ES, Inc. Energy Security Project works with Ukrainian government, private sector, and civil society leaders to improve Ukraine’s energy security, and transform Ukraine’s energy sector into a modern, market-oriented, EU-integrated, engine of growth. Energy Security Project’s goals include inter alia promoting Competitive Energy Markets, facilitating European Integration, strengthening Energy Independence, facilitating Renewable Energy Development, supporting Empowered Sector Regulation, increasing Public Trust, and ensuring Environmental and Social Responsibility.

Ministry of Communities and Territories Development (MinRegion) is a central executive body, the activities of which are directed and coordinated by the Cabinet of Ministers of Ukraine. The Ministry of Regional Development is the main body in the system of central executive bodies that ensures the formation and implementation of state regional policy, state policy in the field of local self-government development, territorial organization of government and administrative-territorial organization, state housing policy and policy in the field of human settlements. in the field of housing and communal services, state policy in the field of household waste management, state policy in the field of construction, urban planning, spatial planning and architecture, state policy in the field of technical regulation in construction, and provides state policy in the field of architectural and construction control and supervision, in the field of control of housing and communal services and in the field of ensuring energy efficiency of buildings.

In the area of district heating, the Ministry is mandated to ensuring formation and implementation of the state policy in the field of housing and communal services, to promote ensuring quality utility services by service providers; to submitting to the Cabinet of Ministers of Ukraine proposals on Procedures for the formation of utility tariffs set by local governments; Procedure for establishing standards (norms) of consumption of public utilities.

Energy Security Project is providing technical assistance to MinRegion under several directions of assistance, including technical assistance to improve policy and legislative framework for heat supply planning.

On October 02, 2020, Minister of Community and Territories Development of Ukraine by order #235 has adopted “Methodology of development of heat supply schemes for the settlements of Ukraine”. The Methodology is published: “Procedure on approval by the Ministry of Regional Development of heat supply schemes of settlements with a population of more than 20 thousand people and regional programs for modernization of heat supply systems” was established by Order #101 of Minister of Community and Territories Development of Ukraine, as of April 28, 2020. Published here:

The Methodology on HSS development introduces a number of new provisions and requirements for scheme developers and involved stakeholders, in the area of general requirements, but also, in the procedure of HSS development and in the domain of content of the HSS and the indicators to be used for HSS assessment, to mention jutst few issues – introducing cost benefit analysis, target of efficient district heating as defined in EE directive, a set indicators for each activity under the heat supply value chain, heat supply scheme passport and projected transition over the period, progressing of intended indicators (efficiency, quality, reliability, environmental), period of projection 10 years, period of review 5 years, and other numerous provisions.

The efforts of the subcontractor will support MinRegion in heat supply planning framework implementation area.


The overall objective of this assignment is to provide support to MinRegion, but also to local authorities, district heating entities, HSS developers in implementation of the new framework on HSS development. Specifically, the subcontractor is requested to achieve the following objective:

  • To develop a Manual for parties involved in Heat Supply Scheme development and approval. The Manual will assist and advise on particular phases of HSS development and passage to DH entities, HSS developers, local administrations.

Opportunity Structure

Scope of Work

To achieve the objective, the subcontractor shall implement the following scope of work:

In its entirety, the HSS should project towards an “efficient district heating – a district heating system that uses at least 50% of renewable energy, 50% of waste heat, 75% of heat produced in the cogeneration process, or 50% of the total energy and heat”, and achieve this concept in the most cost-efficient way if compared to the base line and in the alignment with the prospective development of the particular settlement. The process of HSS development involves cost-benefit analysis for available technologies and resources, taking into account sources of waste thermal energy, renewable energy sources, as well as trends in changes in demand for thermal energy; assessment of alternative scenarios to the baseline scenario, setting categories of indicators and measurable interim milestones.

The procedure of HSS development is provided in the Section III of the HSS Methodology, and the subcontractor shall generally follow the sequence of the HSS development procedure. However, there may be cases when the sequence will need to be detailed, and the subcontractor is expected to propose a more detailed and clarified steps within the given sequence. For example, the Methodology provides that the local government body acts as the Customer requesting for HSS development, and the HSS is to be developed by a legal entity that has certified responsible contractors or by an qualified and certified individual. However, it is not provided a specific way of appointing the developer. In this case (and in similar cases) the subcontractor is expected to propose clarifications and additional steps on developer appointment, in accordance with the best international practice and in alignment with the current Ukrainian legal-regulatory framework. If, for eg., the subcontractor proposes a competitive selection to be applied to appoint the developer, the Manual shall provide developed Template terms of reference and other developed Template documents for such a competitive selection to be realized in practice. In some cases, the Methodology provides a requirement for a document, for eg., technical task for the developer to be a part of the contract for HSS development. In such cases, the subcontractor is expected to provide a Template technical task developed, and the Template can be further adjusted to local specifics of a particular municipality when the HSS development process starts. In some cases, the Methodology provides a requirement for a procedure, for eg., to involve organizations of the heat supply sector of the settlement and industry specialists, including representatives of the central executive bodies in the heat supply sector (by consent) in the development of the technical task. The subcontractor is expected to provide modes of meaningful involvement of the aforementioned stakeholders, and associated practical advises and Template documents, if relevant. This approach shall be applied to the entire process of the HSS development procedure, including but not limited to the para 4-5 of the III Section.

Section IV of the Methodology provides on HSS contents and form. The structural partial documents, which in entirety make the HSS package, shall be detailed by the subcontractor and Templates shall be developed. In majority of cases, the Methodology provides a request for a document (description, explanation, etc.) in general wording, for e.g., climatological characteristics of the settlement, or description of the industrial complex, or current condition and plans for new construction and / or thermal modernization of buildings, etc. The content of such requests may seem understandable, however, the scope of each request and the level details need further clarification for practical purposes. In these cases, the subcontractor is expected to provide explanations, Template documents, case examples, best practice evidences, and other practical materials which would simplify and speed up development of HSS, but also, would harmonize the structure and level of the detail over the entire sector.

Section V of the Methodology provides a list of indicators to be used while developing a HSS. The subcontractor is expected to provide practical examples of calculation the indicators, and cases, when and in which ways those indicators are to be used in the process of HSS development. The subcontractor is expected to provide and advise on data sources enabling reliable calculation of indicators, especially but not exclusively related to environmental impact assessment; preference shall be given to trustable international sources if Ukrainian sources are not available.

Special attention in the Manual shall be dedicated to framing the base line scenario, development of alternative scenarios and performance of cost-benefit analysis. The Manual shall serve as a clear practical how-to instruction for meaningful implementation of this critical part of HSS development. The subcontractor shall provide sufficient know-how details on how to develop base line and alternative scenarios, which data shall come from where, how differentiating alternative scenarios shall be, how many alternative scenarios shall be developed and assessed. Similarly, for cost-benefit analysis part, the subcontractor shall provide step-by-step practical instructions on CBA implementation, supported with formulas and data sources, if relevant.

The subcontractor shall provide practical examples and cases to support and illustrate specific explanations and advises provided in the Manual. The cases shall be presented both from Ukrainian experience and from international experience, when relevant and when local case may be not yet established. When providing best practice case examples, the subcontractor shall ensure those are in accordance with the local regulatory framework – examples provided in the Manual shall not request amendment of current regulation(s), but rather demonstrate best possible ways of implementing the existing regulation(s).

In those cases, when Ukrainian regulations or legal provisions exist regarding aspects of HSS development, the subcontractor is expected to reference the documents.

When relevant, the Manual shall clearly mark the actor to implement actions, document Templates, data sources, etc. – local authority, developer, DHC etc.

The subcontractor may propose enlarging the scope of the Manual with additional information and practical advice if additional information and advice is relevant to building a solid practical guidance on development and passage Heat Supply Schemes. The subcontractor will report to ESP District Heating Sector Lead.

Deliverables and Due Dates

  • Deliverable 1. First draft Manual on Heat Supply Scheme Development
  • Deliverable 2. Second draft Manual on Heat Supply Scheme Development
  • Deliverable 3. Final Manual on Heat Supply Scheme Development
  • Deliverable 4. Presenting the Manual on Heat Supply Scheme Development to ESP team
  • Deliverable 5. Presenting the Manual on Heat Supply Scheme Development to MinRegion and other institutional stakeholders
  • Deliverable 6. Presenting the Manual on Heat Supply Scheme Development to DH sector entities, HSS developers and other related stakeholders

Competitive Scope


Offeror must provide the following information and references in order to be qualified for the procurement process:

  • Company’s information, including official registered title, type of business, address, and contact person information.
  • A short description of the company and of past similar experience in providing the services described in the Attached A -Technical Specification.
  • Overall technical approach to fulfill the specifications defined in Attachment A – Technical Specifications.
  • Certification that company is not owned or controlled in total or in part by any entity of any government.
  • Certification by any subcontractor engaged by the company for this project that the subcontractor is not owned or controlled in total or in part by any entity of any government.
  • The Offeror shall complete and sign the Representation and Certifications found in Attachments C to this document and include them with the Offeror’s proposal. Proposals that do not include these certifications will not be considered.
  • A certificate of current cost or pricing data – Attachment D
  • Offerors listed in the Excluded Parties List System will not be considered. The Excluded Parties List can be found at


All questions or clarifications regarding this RFP must be in writing and submitted, in English, to [email protected] on January 22, 2021 no later than 14:00 local time in Ukraine. Questions and requests for clarification, and the responses thereto, will be circulated to all RFP recipients.

Only written answers from ESP Procurement Office of Tetra Tech will be considered official and carry weight in the RFP process and subsequent evaluation. Any answers received outside the official channel, whether received verbally or in writing, from employees or representatives of Tetra Tech, or any other party, will not be considered official responses regarding this RFP.


All proposals are due on February 05, 2021 by no later than 14:00 local time in Ukraine. Proposals must be submitted via e-mail at the address [email protected] in the following formats: Adobe Acrobat and Microsoft Word and/or Excel.

All proposals must fully respond to the Technical Specifications enclosed as Attachment A and must include quotes in the format provided in the Attachment B – Table 1 – Detailed Budget. Proposals received after the above-stated due date and time will not be considered for this procurement.

  • To help us track our procurement effort, please indicate in your email where ( you saw this tender/procurement notice.
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Tetra Tech is a leading provider of consulting and engineering services. The Company supports government and commercial clients by providing innovative solutions focused on water, environment, infrastructure, resource management, energy, and international development. With more than 18,000 associates worldwide, Tetra Tech’s capabilities span the entire project life cycle.

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