Program description in the context of MFK

Millennium Foundation Kosovo (MFK) is an independent foundation set up in 2018 to implement the Threshold Agreement between Kosovo Government and the Millennium Challenge Corporation, worth 49 million USD; around 10 million USD for the DHM project. MCC’s Kosovo Threshold Program addresses two key constraints to Kosovo’s economic growth: real and perceived weakness in rule of law, government accountability and transparency; and an unreliable supply of electricity. MCC’s investments are designed to strengthen the power sector by fostering a market-driven approach to lowering energy costs for households and businesses, encouraging energy efficiency, and developing new sources of electricity generation.

The design of the District Heating Metering Activity (DHM) is based on a rigorous study of the district heating systems in Kosovo which shed a light on the challenges that district heating operators face in maintaining profitability in a changing environment. The objective of the DHM activity is to support reduction of electricity consumption used for heating by expanding quantity-based district heat metering on the Termokos district heat supply network in Pristina.

HeatSave activity focuses on implementing district heat metering services for the customers on Termokos network, including installation of consumption-based heat metering in individual apartments, and installation of thermostatic heating valves with built-in balancing function on radiators. Equipment and devices for metering heat consumption will be installed in about 14,000 apartments within a total of about 287 buildings (about 253 heating substations). These tools will allow heating control and thus cost reduction.

All mandatory required equipment, from rehabilitation of substations to installation of heat meters, heat cost allocators (HCA) and thermostatic valves (TRV) and metering and billing system are free of charges and will be subsidized by the MCC/MFK project.

By implementing a consumption-based heat metering, HeatSave is expected to:

• Reduce demand on the district heat network;
• Support expansion of heat supply services to new consumers which rely on electricity for heating;
• Improve the services for the consumers who already reside in buildings connected to district heating services; and
• Enable Termokos to transition into consumption-based billing and thus better align their revenues with their costs and the services they provide