Mandatory Individual Heating Substations: How the New Law Will Reshape Ukraine’s Heating System
The Verkhovna Rada has approved in the first reading draft law No. 14067, which предусматриes mandatory installation of individual heating substations (IHS) in buildings connected to centralized district heating systems. Formally, this is a step toward modernizing a system that has operated by inertia for decades. In reality, it is an attempt to respond to a challenge imposed by war: how to guarantee heat amid constant attacks on energy infrastructure.
The document was developed within the framework of the Ukraine Facility Plan and Ukraine’s European integration commitments. It concerns adapting legislation to European Union standards and creating conditions for sustainable and efficient centralized heat supply. Behind these formal definitions lies a simple fact: a system that is not modernized will not withstand either the market or wartime pressure.
What the law changes
The core innovation is the mandatory implementation of IHS in buildings connected to centralized networks. An individual heating substation allows regulation of heat consumption depending on outdoor temperature and actual building demand. This means:
- accurate metering;
- the possibility of reducing costs;
- improved energy efficiency;
- less dependence on inefficient overheating.
The draft law also clarifies competitive rules for heat-generating companies operating on different energy sources. This is an attempt to update a market long dominated by monopoly or quasi-monopoly models. It is separately emphasized that the act does not require direct funding from state or local budgets. However, modernization of networks, installation of IHS, and infrastructure renewal will inevitably require investment through municipal programs, loans, or donor support.
War as a catalyst
The parliamentary decision comes amid a state of emergency in the energy sector. The president announced its introduction on January 14, and coordination was assigned to the government. The minister of energy stated that not a single power plant in Ukraine has remained untouched by Russian strikes. On February 3, during a massive attack, strikes targeted combined heat and power plants and thermal power stations in Kyiv, Kharkiv, and Dnipro. In the capital, the Darnytskyi and Dniprovskyi districts were left without heating. In response, the city deployed additional assistance points, some connected to mobile boiler units. These events demonstrated a critical reality: large centralized facilities remain vulnerable targets. Even when a network is technically operational, a single strike can disrupt it.
Decentralization as a survival strategy
Against this background, the idea of mass installation of modular neighborhood boiler houses is gaining traction. According to estimates, a network of several dozen containerized boiler units could supply heat to a significant portion of the capital before the next heating season. Supporters of this approach point to several arguments:
- installation takes weeks rather than months;
- the cost is significantly lower than cogeneration units;
- no need to construct permanent buildings;
- the system is dispersed and less vulnerable to attacks.
A 10 MW mobile boiler unit can cost around $1 million. Due to a distributed structure, damage to one facility does not disable the entire system. This follows the logic of distributed generation, where each module operates autonomously. At the same time, cogeneration units remain important for ensuring the energy security of critical infrastructure. However, manufacturing timelines for such systems can reach six to nine months. With the next heating season approaching, speed becomes a decisive factor.
Two directions of one strategy
The draft law on IHS represents a step toward systematic modernization of centralized heating. Modular boiler houses represent a crisis response under wartime conditions. These approaches do not contradict one another.
IHS provide control and savings at the building level.
Modular boilers provide resilience and backup at the district level.
Ukraine faces a situation in which it must simultaneously reform the system and protect it from strikes. Centralized heat supply is recognized as an area of state interest. Yet without distributed solutions and flexible generation models, it will remain highly vulnerable.
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What this means for consumers
For residents of multi-apartment buildings, the introduction of IHS means the possibility of more precise heat regulation and potential reduction in bills through decreased overconsumption. For municipalities, it offers a chance to modernize infrastructure and increase efficiency.
At the same time, recent attacks have shown that in wartime conditions, the key issue is not only tariffs and savings, but the physical ability of the system to function after a strike.
The parliamentary decision sets a framework for long-term modernization. The response to wartime challenges is being shaped in parallel through decentralization, reserve solutions, and hybrid heat generation models. The combination of these approaches will determine whether Ukrainian cities can enter the next winter with stability and without critical shutdowns.
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