Actions taken to implement the state program on upgrading district heating systems have reduced the natural gas consumption by housing and communal services (HCS) by 5-8%. By 2014, the government is planning to increase the energy efficiency of HCS sector by 20%, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Installing heat insulation in high-rise buildings is an efficient ways to cutting energy costs. Experts say up to 70% of heat loss occurs in apartment buildings.

Under the government’s strategy on improving the energy efficiency in housing stock, over 1,200 apartment buildings have been fully insulated. Some 900 houses are at the final stage of upgrade and will be insulated by the end of 2013.

At least 80% of residential houses in Ukraine were built during the 1980s. They leak up to 60% of heat delivered to them on worn heating systems. Introduction of energy-saving technologies and installation of heat meters reduces heat consumption by 1.5-2 times, thus significantly reducing the electricity bills.  Energy upgrades are the most efficient mechanism to avoid the higher tariffs. Due to low energy efficiency of communal services, Ukrainians overpay for heat 26 billion UAH annually.

Experts say the Cabinet has taken timely and efficient measures to save energy this year. 
Almost half of all houses and 93% of heating sources have been equipped with heat meters. Also, 2,700 boiler plants have been equipped with energy-efficient equipment, which reduced the natural gas consumption by 8%.

The participation of homeowners in HCS upgrade is an important part of energy-saving strategy. A priority task for government is to establish Apartment Building Co-Owners Associations (ABCOA).

In developing the Government Program to upgrade heat supply in Ukraine for 2014-2016, the best international experience was considered, namely, Germany, where, during the Soviet times, GDR houses were built using the same blueprints as those in Ukraine. Implementation of this program will help reduce gas consumption for production of heat  due to savings (by 25.4%) and due to gas replacement (by 24.2%). In general, the savings should amount to 49.6% or 4.1 billion m3 of natural gas.

The approximate scope of funding for energy efficiency program will be about 28 billion UAH. In particular, 1.5 billion UAH will be allocated from the state budget, 4.5 billion UAH will be raised by local budgets and enterprises, and 22 billion UAH will be provided by private investors. Experience of European countries shows that integration of energy-saving technology is repaid in 5-7 years.

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