Ukraine Facility Platform developed an applied decentralised energy model for a specific territorial community. The purpose of the project was to demonstrate how a systemic approach to the energy mix can deliver maximum economic and security benefits. The project is a practical example of applying the Collaborative Effort Toolkit at the level of a Ukrainian community. For security reasons, the city is referred to as “Tykhohirsk.”

The results and the energy model were presented at an international conference in Rome in July 2025 by Oleksandr Vizir, Coordinator of the Energy and Climate Sector at Ukraine Facility Platform.

What was analyzed

To design an optimal community-level energy system, the project analysed:

  • the structure of electricity and heat consumption;
  • daily and seasonal load profiles determining the need for highly flexible capacity;
  • the condition of existing infrastructure and options for its modernisation;
  • available local resources, including biomass;
  • grid connection parameters and the potential for integrating decentralised generation;
  • the economic performance of different generation technologies.

Key results

The analysis confirmed that the strongest economic outcome is achieved not through a single technology, but through a complementary mix with a high share of renewables:

  • a gas piston engine (CHP) as a base and flexible capacity;
  • solar PV to reduce operating costs;
  • battery energy storage systems (BESS) for balancing and peak operation;
  • a bio-CHP plant using local feedstock as the next stage of scaling.

This technology mix ensures system flexibility, reliability, and reduced dependence on expensive imported fuels, while at the same time increasing the project’s investment attractiveness.

Economic parameters

Total capital expenditure is estimated at up to €25 million, with an indicative payback period of 5-6 years. Optimisation is achieved through:

  • the use of existing infrastructure;
  • phased commissioning of capacity;
  • the use of local resources, reducing operating costs;
  • the possibility of direct contracts with consumers within the community.

Conclusions

  1. The Tykhohirsk case confirms that decentralised energy can be investment-ready and bankable when projects are designed around the specific needs and conditions of a community.
  2. Communities can act as full-fledged partners for private business, while investments in local energy systems simultaneously strengthen energy resilience, reduce budgetary pressure, and create new opportunities for economic development.
  3. The Energy Collaborative Effort Toolkit functions as a replicable model that can be scaled to other communities, taking into account their specific data and conditions.
This case illustrates a shift from isolated energy solutions to a systemic approach, where decentralised generation becomes part of a long-term strategy for community development and for strengthening the national energy system.
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