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Vice Prime-Minister is confident that law on energy efficiency for buildings lays basis for the most profitable thermal modernization and launches energy audit market

Kyiv, October 31, 2016.

According to the law, Ukrainians equipping their houses efficiently will get their costs covered; this fosters less gas consumption yet creates a range of jobs on the energy audit market.

Kyiv, October 31, 2016. Law No. 4149 on energy efficiency of buildings will lay the foundation for the best possible thermal modernization of buildings due to a professional audit and, as a result, will allow saving on utilities. This was stated by Hennadiy Zubko, Vice-Prime Minister – Minister of Regional Development, Trade, Housing and Communal Services of Ukraine, at a press briefing held at Ukraine Crisis Media Center. “Improving energy efficiency by one grade we get up to 25 percent lower consumption. And if, for example, we transfer a building from class F to class A – we already have examples in Ukraine when consumption savings reached 73 percent,” noted Mr. Zubko. In addition, the experience of Germany and Poland showed that thermal modernization will increase the market value of housing by about 10 percent.

According to him, in case of successful implementation across Ukraine, thermal modernization will save approximately 9 billion cubic meters of gas annually, and there will be no need to spend UAH 52 billion on subsidies. “Our main task is that people should pay little for utilities, and that excessive spending should not be publicly-funded, as this does not leads neither to quality services, nor to warm rooms, and gives no certainty in the actual amounts consumed,” said Gennady Zubko.

Law No. 4149 is a part of obligations under the Association Agreement and the Third Energy Package

Hennadiy Zubko reminded that this step is one of Ukraine’s commitments within the framework of adaptation to the EU Directives 27 and 31 and under the Third Energy Package: they determine the “road map” changes. In addition to a future law on energy efficiency of buildings, it includes the already adopted law “On peculiarities of ownership in the house” and another two law drafts – No. 1581-d “On housing and utilities services”, No. 4901 “On commercial accounting”.

Energy Efficiency Fund will compensate up to 50 percent of costs

Approximately 50 percent of the thermal modernization costs may be compensated through Energy Efficiency Fund financed by the state and Western partners. “The compensation will be enlarged depending on energy efficiency class of the building,” noted Mr. Zubko. The goal of the law on energy efficiency is to “digitize the result for which assistance can be given”. The Draft Law on Energy Efficiency Fund is being discussed with foreign partners, it is assumed that they will co-finance the fund.

The owner ensures the initiative, the state ensures “road map”

Hennadiy Zubko noted that it is the owner who should initiate thermal modernization of the building, and the state, in its turn, should offer a clear “road map” for implementing the whole process. An energy audit will be its first element. It consists in the expert assessment of the current class of energy efficiency of the building. “The energy audit will allow us to know the exact technical condition of the building and communications. The manager and the co-owners of the building will find it much easier to plan thermal modernization,” noted Vasyl Lyman, President of civil union “Association of Housing Managers.”

Vasyl Lyman added that, given the huge number of typical high-rise apartment houses, it will be possible to develop standard thermal modernization designs for these buildings within a short time.

Energy audit and the energy efficiency market

Law No. 4941 will launch the energy audit market in Ukraine. “We need some time to complete it, but its ultimate goal is provide consumer with a choice between of companies offering energy services”. Andriy Tsybulko, chairman of the Association of energy auditors of Ukraine, noted that the law details protective measures against possible abuses and provide conditions for the growth on this market. First, the state will not participate in the certification of energy auditors. “On the first stage, higher education institutions will hold certification. On the second stage, already when the market improves, the independent organizations will do certification,” he informed. The results of work performed by energy auditors will be published on the web site of the corresponding agency. This will ensure proper control of service quality and prevent the promotion of goods of the certain company by energy auditors.

Hennadiy Zubko noted that launching energy audit and energy efficiency market will make it possible to create about 75,000 jobs in small and medium businesses. “This is a multiplier effect not only in terms of foreign exchange balance and balance of payments (because be gas consumption and its purchase will be reduced), but also in terms of additional tax revenues in the budget,” he noted.

In the future, the massive creation of condominiums simultaneously with thermal modernization will radically reform the energy sector through building of a heating system for groups of buildings, which will allow us to do away with the heat pipelines, to use energy efficiently and to provide quality services.

Hennadiy Zubko , Vasyl Lyman and Andriy Tsybulko expressed hope that this week the Parliament will pass the abovementioned legislative package. “Without these legislative changes we can do nothing to help reduce the burden on the foreign exchange balance, balance of payments and ensure energy independence,” stressed Hennadiy Zubko.

 

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