The relevance of the research topic is caused by the need to form new innovative approaches in the field of heat supply, aimed at modernizing thermal power plants that provide heat to urban areas. In recent years, the Russian government has adopted several state programs related to environmental protection, directed towards reducing the emission of harmful substances into the atmosphere. Thermal power plants are objects whose emissions significantly pollute the environment. Considering the wear of equipment, according to various estimates, reaches 60-80% in different regions, such equipment is extremely necessary to be modernized. Using the mechanism of public-private partnership in the field of heat supply is examined in this study. An algorithm for constructing a model in the field of creating mini thermal power plants is considered. They provide heat supply to individual urban areas, as well as to ensure a significant reduction in the level of environmental pollution. The main financial indicators are estimated based on the above algorithm. This project’s performance is assessed on the basis of financing both from the state and private companies. Conclusions about using the proposed model for the development of heat supply are drawn.