In April 2015 Zastavnaya, which located in Bukovina, became the first Ukrainian town that completely refused the purchase of gas for heating.
Local businessman Peter Naida, signed with city management investment contract for the installation of solid fuel boiler with a capacity of 2 MW, made this transfer possible. Funds in the amount of 800 thousand hryvnas, which was spent to the modernization of the boiler room, are planned to return within two years. The raw material can be used as wood pellets and coal, wood and industrial wood residue. But as a primary energy source city management are considering wood pellets, the production of which has been established in Zastavna long time ago. The first customers connected to the new boiler were schools, kindergartens, school district administration and the Palace of Culture.
The reason for this action was a sharp increase in gas prices, threatened to devastate already poor local budget. Now the household payments for heating will be reduced by 40%. According to Yaroslav Tsurkan the Mayor of the city, all savings will be directed to programs on energy saving and energy efficiency. In particular, replacement of windows and insulation of the premises of institutions of public sector have been planned.
According to market analysts, Ukraine has the greatest potential in in Europe to transfer to solid biofuels that can replace up to 40% of its gas.