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Corresponding author:
1 SHEI «Ukrainian State University of Chemical Technology», Ukraine.
E-mail: spkiris@gmail.com
ORCID: https://orcid.org/0000-0001-6905-9682

DOI: https://doi.org/10.30525/2661-5150/2021-3-3

IMPLEMENTATION OF ENERGY EFFICIENT PRINCIPLES  
IN MANAGEMENT OF AN APARTMENT BUILDING IN UKRAINE

Stanislav Kiris1

Abstract. The purpose of this article is to analyze the efficiency of management of an apartment building in the 
context of energy efficiency. The article describes the conduct of an energy audit for apartment buildings, which 
allows a thorough assessment of this problem and identify optimal ways to save energy resources by apartment 
buildings. Energy audit is a special examination of residential buildings or enterprises, conducted by specialized 
specialists in energy certification of buildings to determine their technical condition and energy efficiency. 
Methodology. Within the framework of this article, the results of a sociological survey conducted among the heads 
of condominiums to analyze the level of their interest in the implementation of energy efficiency measures were 
analyzed. The value of the cost of 1 apartment for the implementation of the energy modernization project is 
calculated. Currently, "energy efficiency" and "energy saving" are extremely popular in Ukraine, due to the following: 
increasing the cost of energy resources;limited financial capacity of vulnerable groups to pay for services. Results 
of the survey showed an insufficient level of implementation of energy-saving technologies, although the level of 
interest of apartment building heads is very high. The development of energy efficiency programs for an apartment 
building is carried out not only taking into account the necessary priority measures, but also based on the financial 
capacity of the co-owners of the apartment building. The reason for the insufficient implementation of energy 
saving measures is the insufficient financial capacity of co-owners and, as a consequence, the apartment buildings 
themselves. State support for the implementation of energy efficiency in the management of apartment buildings 
has been studied in detail. It is concluded that large-scale involvement of apartment buildings in the implementation 
of energy efficiency programs is constrained by the following problems: insufficient funding; insufficient state 
support for project financing; distrust of co-owners to the effectiveness of the project; unsatisfactory condition of 
the apartment building, which requires significant financial costs. The growth rate of the number of condominium 
applications shows an increase in public confidence in the Program. However, they are not enough to talk about 
launching large-scale energy modernization of multi-apartment housing. Financial support of local authorities to 
their residents in the implementation of energy saving measures will contribute to even better results.

Key words: energy efficiency, energy saving, effectiveness of apartment building management, Warm Credits 
Program, cost of energy resources, EnergyHouse.

JEL Classification: R20, R29, M19, L99

1. Introduction
The analysis of the effectiveness of apartment 

building management should include all aspects 
of this process, however, due to limited statistical 
and other information on apartment building 
management across the country as a whole, rather than 
by individual cities or regions, it seems appropriate 
to analyze the following aspects of management  
process:

1. Organizational efficiency of apartment building 
management.

2. The effectiveness of the system of legal regulation of 
apartment buildings in Ukraine.

3. The effectiveness of involving co-owners of 
apartment buildings in management.

4. The effectiveness of communications in the 
management of apartment buildings.

5. Energy efficiency.
Issues of energy efficiency of apartment buildings 

have recently come to the fore, because the achievement 
of its high level gives co-owners of apartment buildings 
the following advantages:
– reduction of heating costs;
– improving the condition of common property;
– the possibility of further modernization of 
management processes;

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0



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Vol. 2 No. 3, 2021
– improving the quality of life (ensuring proper  
heating and water heating), etc.

2. Researches of the level of interest  
in the energy efficiency

Increasing the level of energy efficiency of apartment 
buildings contributes to improving the payment 
discipline of co-owners, modernization of housing. 
Thus, in January 2020, the Ministry of Development 
of Communities and Territories of Ukraine conducted  
an analysis of the results of a survey conducted among 
the heads of condominiums to examine the level  
of their interest in implementing energy efficiency 
measures. The conducted researches, first of all, were 
carried out to determine public opinion on the reform 
of energy efficiency of apartment buildings, the level  
of their involvement and attitude to possible benefits.

The results of the researches were as follows  
(Figure 1).

Also, among the respondents, the largest share is 
occupied by those apartment buildings that have 
installed energy-saving lamps in the house, and the 
smallest share – those houses that have reduced the 
heating area (Figure 2).

In our opinion, such results of insufficient 
introduction of energy-saving technologies are caused 
by the following:

 Association of co-owners of an apartment building 
from Dnipropetrovsk and Zaporizhia oblasts showed 
the greatest efficiency in this survey, and although the 
data obtained and presented in the study cannot be 
used to analyze the energy efficiency of all apartment 
buildings in Ukraine, they give a general idea of the state  
of energy efficient technologies in apartment buildings.

3. An energy efficiency and energy audit
Currently, the terms "energy efficiency " and "energy 

saving" are extremely popular in Ukraine, due to the 
following:
– increasing the cost of energy resources;
– limited financial capacity of vulnerable groups to pay 
for services;
– deterioration of the state housing stock and heat  
loss by many apartment buildings in the process of 
increasing their service life.

Therefore, in Ukraine, an energy audit has been 
introduced for apartment buildings, which allows 
for a thorough assessment of this problem and the 
identification of optimal ways to save energy resources 
by apartment buildings. Energy audit is a special 
examination of residential buildings or enterprises, 
conducted by specialized specialists in energy 
certification of buildings to determine their technical 
condition and energy efficiency.

The Law of Ukraine "On Energy Conservation" 
established that the energy audit is "determining the 
efficiency of fuel and energy resources and developing 
recommendations for its improvement".

Based on the interpretation of the provisions and 
norms of this Law, we note that energy audits are 
conducted to assess the efficiency of use (in our 
case – apartment buildings) of energy resources  
and the development of economically viable measures 
to reduce their consumption, namely to identify areas  
of energy efficiency.

This assessment provides an opportunity to  
determine the level of fuel efficiency of homes and 
identify the most vulnerable places where excessive 
energy loss occurs. Based on the results obtained, 

 Figure 1. The main results of the researching
Source: built by the author



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audit specialists develop appropriate energy saving  
measures, as well as programs and recommendations 
for apartment buildings that need to be implemented 
to increase energy efficiency and reduce energy 
losses in the house. In addition, the priorities for the 
implementation of the recommended measures are 
determined, taking into account the current level of 
funding for these measures. The energy audit process 
provides an opportunity to obtain recommendations 
for the implementation of energy management  
systems, which can be provided as an option.

Thus, the development of energy efficiency 
programs of an apartment building is carried out 
not only taking into account the necessary priority 
measures, but also based on the financial capacity of 
the co-owners of the apartment building. We believe 
that taking into account financial capacity is one of the 
determining factors in the implementation of energy 
saving programs, because, according to the researches,  
to participate in energy modernization condominiums 
can spend a maximum of 20.8% of the energy efficiency 
project (Figure 3).

Such indicators of the ability to finance energy 
projects by co-owners of apartment buildings are due 
to the fact that the main share of apartments in an 
apartment building is ready to finance an amount not 
exceeding UAH 500 per month (Figure 4).

An expanded list of domestic energy auditors has  
been opened for use as part of the interactive energy 
auditors' map developed by GIZ and the Energy 
Efficiency Fund. The map contained contacts of 
specialists on energy efficiency certification of 

buildings, regions of their activity, information on 
work experience and other information. The resource 
provided opportunities to find experienced energy 
auditors for work in apartment buildings. 

It should be noted that the cost of energy audit 
works and reimbursement of their cost from local 
budgets are important enough to make a decision.  
In particular, among the surveyed condominiums, 
48.6% determined that the percentage of 
reimbursement of the cost of the energy efficiency 
program is important for them (Figure 5).

 

4. State support for energy efficiency
It is also worth noting that state support for the 

introduction of energy efficiency in the management 
of apartment buildings includes the following: 
State support for energy efficiency projects (Warm 
Credits Program). The program of state support for 
energy efficiency measures in apartment buildings 
is implemented under the State Targeted Economic 
Program for Energy Efficiency and Development of 
Energy Production from Renewable Energy Sources 
and Alternative Fuels for 2010-2021, (Warm Credits 
Program), which provides for encouraging co-owners 
of apartment buildings and housing cooperatives to 
introduce energy efficiency measures by reimbursing 
part of the cost of loans raised for the purchase of  
energy efficient equipment and materials.

According to the Procedure for the use of funds 
provided in the state budget for the implementation of 
measures for the efficient use of energy resources and 
energy conservation, the mechanism for implementing 

 Figure 2. Use of energy efficiency practices in apartment buildings in Ukraine
Source: constructed by the author



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6,3% 6,3%

3,5% 4,2%

15,3%

9,0%

20,8%
19,4%

9,0%

6,3%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Figure 3. Minimum percentage of compensation that is ready 
to finance condominiums of Ukraine to participate in energy modernization

Source: constructed by the author

 
Figure 4. The cost of 1 apartment for the implementation 
of the energy modernization project (project duration – 6 months)

Source: constructed by the author 

 Figure 5. The most important characteristics of condominiums' participation in energy efficiency programs
Source: constructed by the author



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the Program and the mechanism for determining 
its responsible executors was determined. In 2019, 
according to the resolution of the Cabinet of Ministers 
of Ukraine "Some issues of optimizing the system of 
central executive bodies" to optimize the system of 
central executive bodies is the process of reorganization 
of individual central executive bodies, primarily the 
Ministry of Community of Energy and Environmental 
Protection of Ukraine (Ministry of Energy of Ukraine). 
In turn, there have also been changes in the powers 
and tasks of the relevant ministries. Today, according 
to this Procedure, the responsible executor of the 
program "warm loans" – the State Agency for Energy 
Efficiency and Energy Saving of Ukraine, and the main 
administrator of budget funds – the Ministry of Energy 
of Ukraine. We also note that in 2020, according to 
the resolution of the Cabinet of Ministers of Ukraine 
"On amendments to the resolutions of the Cabinet 
of Ministers of Ukraine from 01.03.2010 № 243 and 
from 17.10.2011 №1056" amendments were made to 
the Procedure and Program, which provided funding 
for account of the state budget in the amount of UAH 
150 million. and the direction of the Program in 2021, 
which aims to repay part of the amount of loans in the 
following areas: incentives for co-owners of apartment 
buildings; Encouraging citizens to purchase boilers 
using any type of fuel and energy (the exception is 
natural gas and electricity).

For 2021, the Program and the Procedure did not 
provide for the reimbursement of part of the amounts 
of loans raised to stimulate condominiums and 
housing cooperatives to implement energy efficiency 
measures in apartment buildings. Development of local  
programs to support the development of apartment 
building management, which implement energy 
efficiency measures.

It should be noted that on September 2, 2021, 
43 communities approved their own programs to 
support condominiums in order to reduce the financial 
burden on co-owners in the process of implementing 
energy efficient projects in apartment buildings. Note 
that the 16 local programs that were approved earlier  
do not need to be changed or adapted, and 34 are  
under development. Thus, the latest programs analyzed 
by the Fund were approved by local governments  
in the following cities:
– Bar; Veselivska UTC; Energodar; Krasnopil UTC; 
Mukachevo;
– Netishyn; Butts; Pereyaslav; Uzhhorod; Chortkiv.

5. Conclusions
The purpose of the programs is to stimulate the  

creation of condominiums and provide them with 
financial support by partially reimbursing the costs 
of loans taken to implement energy saving measures 
in apartment buildings. Analyzing the results of the 
implementation of the «EnergyHouse» Program in 
Ukraine, we note that in Ukraine, 53 condominiums 
participating in the Program have fully or partially 
carried out construction and installation work in 
buildings.

Thus, at the end of 2020, some co-owners of 
apartment buildings estimated the savings in 
utility bills through the introduction of energy 
saving measures. It was planned that by the end of 
2021 the first projects in 11 regoins should be fully 
implemented, and this should be a significant impetus 
and a worthy example for other apartment buildings 
that have not yet decided whether to participate in 
this Program or not. Yulia Holovatyuk-Unguryanu, 
director of the Energy Efficiency Fund, notes that 
“the growth rate of the number of condominium 
applications shows an increase in public confidence 
in the Program. However, they are not enough to talk 
about launching large-scale energy modernization of 
multi-apartment housing. Financial support of local 
authorities to their residents in the implementation 
of energy saving measures will contribute to even 
better results. We agree with the expert that the 
large-scale involvement of apartment buildings in 
the implementation of energy efficiency programs is 
constrained by the following problems:
– insufficient funding;
– insufficient state support for project financing;
– distrust of co-owners to the effectiveness of the 
project;
– unsatisfactory condition of the apartment building, 
which requires significant financial costs.

In total, from September 2019 to the second quarter 
of 2021, 151 memoranda of cooperation were signed 
between the Energy Efficiency Fund and the MHI.  
In 2021 it is planned and partially signed Memoranda 
with the cities of the following regions of Ukraine: 
Zaporizhia; Kherson; Sumy; Dnipropetrovsk; Trans-
carpathian; Cherkasy; Kirovograd; Mykolayivska; 
Odessa; Kyivska; Rivne; Lviv; Zhytomyr; Volyn;  
Ivano-Frankivsk; Poltava.

The Foundation in 2021 also sent letters of invitation 
to more than 250 cities and communities.

References:
Energy Efficiency Fund (2021). Enerhodim [Energy house]. Retrieved September 16, 2021 from:  
https://eefund.org.ua/ponad-40-gromad-zatverdili-miscevi-programi-pidtrimki-osbb-scho-vprovadzhuyut-
energoefektivni
Law of Ukraine of July 01,1994 № 74/94-VR (1994). Pro enerhozberezhennia On energy saving]. Retrieved 
September 02, 2021 from: https://zakon.rada.gov.ua/laws/show/74/94-%D0%B2%D1%80#Text



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Vol. 2 No. 3, 2021
Ministry of Development of Communities and Territories of Ukraine (2020). Enerhoaudyt – tse diahnoz 
dlia vashoho budynku abo pidpryiemstva [Energy audit is a diagnosis for your home or business]. Retrieved  
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osbb-gotovi-vzyati-uchast-u-programi-energodim/
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