18−20 May 2021

IEC, 15, Brovarsky Prospect
Kyiv, Ukraine


31 March 2017

Energy Efficiency at KyivBuild – Serhii Savchuk

Energy efficiency, energy efficiency, energy efficiency.

This was practically the headliner of KyivBuild-2017 and its business program. No wonder, that Serhii Savchuk, the  Head of the State Agency for Energy Efficiency and Energy Saving was invited to visit the event opening.

Serhii Dmytrovych, the government officials talk and write much about the need in saving. Adding that the state is continuously working in this field. Could you describe the details of implementing the governmental programs in the field of energy saving, and how can people practically ensure energy saving?
– Well, few days ago I came form Lviv. There I visited a house which had been subjected to heat insulation upgrading under the government's program. Every apartment had invested in this process UAH 8 thousand only. Look, before that the price of a three-room apartment in that house was USD 48 thousand. After the upgrade people are ready to buy it for USD 85 thousand. Thus, investing UAH 8 thousand the apartment price was increased by USD 35 thousand. Isn't it a great economic effect?
However, that is not a whole story. Under the terms of such loan each apartment pays UAH 129 a month maximum, while the upgrade allows saving about UAH 450 per month of the heating, gas and electricity bills.

- Well, how do they arrive to such saving?
- That is because the state reimburses 49 % of the warm loan. It means that the Apartment Blocks Joint Owners Association pays 51% only. Currently, billions of hryvnias are allocated for this program. The local governments and banks are actively joining the program.

– How many houses have already joined the programs and what are the government's further plans in the filed of energy  saving?
– Let me start with the plans, the latter being rather expansive. By 2030 we are going to spend EUR 50 biilion. What is covered by this amount? Heat insulation of 100 thousand multi-storey buildings and 6,5 million individual housing, which also requires comprehensive upgrading. The state elaborates the stimulating mechanisms to steam money to the upgrading market. Once we have money, we have a demand, once we have a demand the houses will be upgraded. That is an advantage for the entire country's economy.
Two years ago only 200 Apartment Blocks Joint Owners Associations undertook heat insulation upgrading, the last year there were 4000 of them. Over the first two months of the current year the number of the Apartment Blocks Joint Owners Associations which  have already received the "warm" loans and are candidates for our assistance is 4 times higher than that for the same period of the preceding year.  Therefore, we are headed in the right direction.

– What is the government focused on more: upgrading or construction of new housing?
- We keep working in both.  I have already told you about upgrading.  However, there are extremely worn out houses. They require either capital reconstruction or demolishing with the new houses to be erected instead. Nowadays, the new houses are built in very city and town. What is important: we mastered high quality but cheaper construction processes. People buy apartments, it means that the market is on the rise. Surely, if we launch, fir example a program for reimbursing people the cost of new apartments purchase, the market will become even more active. As of the date the Ministry of Regional Policy is developing such a program. Hopefully, we will hear the results soon.