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  • Oleksiy Honcharuk: Thermal modernization of buildings is a real way to reduce the heating service rate in utility bills
    Communications Department of the Secretariat of the CMU, posted 31 January 2020 17:42

    During a working trip to Zhytomyr, Prime Minister Oleksiy Honcharuk inspected one of the buildings in which measures aimed to provide thermal modernization had been implemented.

    “The result of thermo-modernization is that residents of an energy-efficient house pay in average twice less for heating services than residents of a neighboring building. On average, for a two-room apartment in an energy-efficient building, residents pay UAH 677, their neighbors in the same street in the house requiring thermal modernization - UAH 1211,” said Oleksiy Honcharuk.

    In the mentioned building, the windows were replaced with energy-efficient ones, as also entrance doors, doors in the basements, and thermal insulation of the building was conducted. In general, the sum worth UAH 889,000 has been spent for energy efficiency measures. Much of this money was offset from the state (UAH 285,000), city (UAH 267,000) and regional budgets (UAH 8,000).

    Overall, Zhytomyr region is in TOP 10 regions in terms of the quantity and sum of credits aimed to implement energy efficiency measures. Since 2015, more than 14.3 thousand credits to the tune of UAH 322.5 million have been attracted to the region for these purposes. Including, nearly UAH 72 million was raised for 226 condominiums, which is one-third of all associations of apartment buildings in the region. 

    Zhytomyr also enters the list of 31 Ukrainian cities that expressed readiness to participate in the Government's pilot project on the thermal modernization of apartment buildings. In 2020, the Energy Efficiency Fund will operate at its full capacity following a new top-down principle. Municipalities will play an important role in the organization and implementation of the project.

    In order to participate in the project, homeowners must agree at a general meeting to take part in the program and pay part of the cost of the project upon completion, when they will have real savings in payments.

    “The Government's target is to ensure that spending on utilities for households does not exceed 15% of the family budget. The most effective way to reduce costs is to improve the energy efficiency of buildings. There are two components included in the utility bill - the cost of heating and the amount of consumption. Consumption can be significantly reduced through introducing energy-efficient measures. Saving from 25% to 60% for heating services leads to a reduction in the bill,” the Head of Government expressed.

    Background

    There are 180 thousand multi-apartment buildings in Ukraine, the largest amount of which are not energy efficient.

    The authorized capital of the Energy Efficiency Fund is already UAH 2.7 billion. The state budget for 2020 provides for an additional UAH 1.6 billion funding.

    In addition, in 2020, the Government allocated UAH 400 million to co-finance Warm Loans for households and condominiums for energy efficiency measures: insulation of houses, installation of automated control stations, metering devices, replacement of windows. Up to 70% of these costs will be offset by the Government. Additional compensation for energy efficiency measures by the local authorities is also envisaged.

    Oleksiy Honcharuk: Thermal modernization of buildings is a real way to reduce the heating service rate in utility bills Oleksiy Honcharuk: Thermal modernization of buildings is a real way to reduce the heating service rate in utility bills