SEVEn proposed reconstruction of the coal hot water boiler room in Horažďovice where it supplies a housing estate with 452 flats. Brown coal was burnt in boilers with an endless grate dating back to 1972. The Energy audit recommended fuel switch from coal to natural gas with the use of condensation technology and overall reconstruction of the hot water mains to four-pipe, pre-insulated channel-free system. A 22kW electrical co-generational unit will be installed in the boiler room to cover in-house electrical energy consumption. Total investment costs reach a level of almost CZK 40 million and the project was supported by a grant from the European funds – OPPI.