Government-supported energy efficiency program of buildings underway for the first time in Armenia
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YEREVAN, AUGUST 21, ARMENPRESS. Within the framework of cooperation between the government, communities and the UNDP Armenia, a thermo-modernization project of buildings is underway in Armenia for the first time, which has reduced heating expenses for residents in numerous communities, cut energy consumption and greenhouse gas emissions. The project is carried out through a governmental subvention program where the government is providing co-funding at 55-70% proportionality.
ARMENPRESS talked to UNDP Armenia Climate Change Program Coordinator Diana Harutyunyan on the De-risking and Scaling-up Investment in Energy Efficient Building Retrofits project, the main goal of which is the reduction of greenhouse gas emissions.
“This project is implemented by UNDP Armenia, with funding from the Green Climate Fund and under the coordination of the Armenian Ministry of Environment. The main goal of the project was the reduction of greenhouse gas emissions as an environmental task in fighting climate change. The reason is that Armenia, as an energy importer and not exporter, is interested in its energy independence. Our studies showed that primary energy resources are consumed in buildings, mostly in the residential sector. With this project we will be able to solve two issues at once – reduce fuel consumption and related greenhouse gas emissions, and also social issues,” Harutyunyan said.
The thermo-modernization is done either partially or fully. Partial retrofitting involves thermal insulation of the rooftops and installation of energy-efficient doors and windows in entrances and basements, and a new lighting system. The full retrofitting also adds thermal insulation of external walls and basements.
In 2020, as a result of cooperation between the UNDP Armenia and the Ministry of Territorial Administration and Infrastructures, this program was included for the first time in the list of actions available under governmental subvention.
“In the first year, thermo-modernization bids for 125 buildings from 14 communities across the country were submitted, with 110 receiving approval. 55 multi-apartment buildings are now in various stages of implementation in Vedi, Spitak, Kajaran, Dilijan, Berd, Akhtala, Stepanavan, Tashir, Ijevan and Ashtarak. The thermo-modernization work will soon begin in another 29 buildings which were approved last year, but the funding will be implemented under a new proportionality”, she said, adding that the retrofitting is mainly done in buildings which initially had poor thermal insulation and were built without considering energy losses.
Harutyunyan says the thermo-modernization in buildings is cutting heating expenses up to 50% and reduces greenhouse emissions. “In addition, the market value of apartments increases 15-20% and the buildings become more attractive. Temporary jobs are also created, and the construction material market is becoming active,” Harutyunyan said.
The governmental co-financing with such proportionality has significantly decreased the burden of communities. Program Coordinator Harutyunyan noted that initially the program was to be implemented by government-involved loans. “During the negotiations process the European Investment Bank expressed such readiness. After the project was launched, the direction of using the loans changed. However, the government attached importance to the issue and decided to support this program with its resources as part of a subvention program,” says Harutyunyan, adding that the government’s participation and the community initiative were very effective because the organizational matters proceeded smoothly.
Currently the state subvention program co-funding is carried out 55-70% by the government, 25% by the UNDP Armenia, and the remainder by the community.
“The government is implementing co-funding with such proportionality because it is attaching importance to the social needs of residents living in multi-apartment buildings. The size of the subvention share depends on the location of communities, for example: whether it is located more than 100 kilometers from Yerevan, or is it a border community etc. The thermo-modernization work of 55 buildings implemented with this proportionality is nearing completion. The other multi-apartment buildings approved under the 2020 state subvention program are waiting for their turn. Here, the government decided to make changes. It is proposed to carry out the co-funding of 30 buildings under a new proportionality, despite their bids having been approved back in 2020 under the previous proportionality. The works of 29 of them will start this year and will be completed in 2022,” Harutyunyan said, warning that the government’s new proposal will create a big burden for the communities, and there are risks that the realization of the 14 million dollars in environmental grants provided for the thermo-modernization program will be jeopardized and it will not be possible to complete the program in the outlined volumes.
The Green Climate Fund describes the project as “improving energy efficiency (EE) in Armenia through building retrofits, addressing high levels of energy poverty and high use of imported fossil fuels for heating. The project will build the market for EE building retrofits in Armenia, leading to sizeable energy savings and GHG emission reductions (up to 5.8 million tCO2 of direct and indirect emission savings over the 20-year equipment lifetimes), green job creation and energy poverty reduction.”
According to the UNDP Armenia, the Project scope will cover single-family houses, multi-apartment buildings as well as public buildings. The expected total number of direct beneficiaries is 210,000.
Interview by Lilit Demuryan
Editing and Translating by Stepan Kocharyan