The house insulation program in Ukraine has not started its operation, but it raises many related questions. There are many factors that make the use of allocated funds ineffective.
Literally on December 1, in a message to the Verkhovna Rada, the President of Ukraine announced that the Great Thermal Modernization project would soon be put into operation. The program plans include large-scale insulation of hospitals, educational buildings, apartment buildings, which will make it possible to insure against future price increases set for various energy resources.
To start the comprehensive insulation of houses, the government approved a bill on December 23, according to which many changes were made. From Denys Shmygal, it was said that the process of creating associations of owners of apartment buildings will become much easier, this is due to the simplification of the program itself.
According to plans, in 2022, insulation should take place in at least 5,000 multi-apartment buildings. Rostislav Shurma states that the program plans to carry out the work for 7-10 years. This time will be enough to modernize at least 180,000 houses throughout Ukraine. At the same time, it is planned that the indicators of gas energy consumption will be reduced by about 30-40%.
Using Energy Efficient Billions
About 30 billion hryvnias were allocated from the budget for the current year in the process, like thermal modernization of houses. Their receipt will be realized through the organization “Ukrfinzhitlo”. And if in September about 20 billion hryvnias were sent, then today another 30 billion hryvnias were received due to additional capitalization.
The process of creating the Ukrfinzhitlo organization was organized at the beginning of 2020, when the Affordable Mortgage program appeared. At the end of 2021, a mortgage state institution was additionally connected. If we consider “Ukrfinzhitlo”, then this is an intermediary between a banking institution and a citizen when it is necessary to obtain a mortgage with an interest rate of 7% per annum. More recently, the organization has additionally begun to engage in leasing.
If we evaluate the success of the organization, then they are relative. As soon as the program began, applications were sent for a total amount of about UAH 1.5 billion, and the number of loans concluded was 1245. But the expectations themselves were much higher than they turned out in practice. Now it is planned that Ukrfinzhitlo will be responsible for an equally important program for the state.
If we take the allocated amount of 30 billion and divide it into 5,000 houses, then about 6 million will be directed to each of them. It should be borne in mind that there is a desire to carry out thermal modernization of institutions in the social and budgetary sectors. Therefore, the allocated money will not be enough to carry out high-quality modernization, since the price for 1 square is at least 200-300 euros.
On the part of Oleg Popenko, it was concluded that at least $1 million would be spent on the modernization of one residential building. If we take 5 thousand houses, then the figure will increase to 5 billion. This can be called the possibility of extending the life of a residential building up to 25 years. This will include not only major repairs, but also the renovation of the building with electricity, heat, water and other amenities. It may take about 10 years to implement a process like insulating 5,000 houses. If we evaluate reality, then there are practically no physical opportunities to realize this.
The President of Ukraine claimed that during the first three years, 100 billion will be spent on the process, and about 300 billion on the implementation of the program. There is no information anywhere whether the indicator will be taken into account as an inflationary component. Therefore, the scale of the “Great Thermal Modernization” is artificially inflated, because the program can be partially implemented.
How will the savings
Before large-scale work is implemented, it is imperative to make an audit and decide which of the facilities need urgent thermal modernization, and which can temporarily wait in the wings. Many argue that if money is invested in a house that has not been surveyed, literally in 5 years it will collapse. It is not advisable to modernize all the facilities in a row and it is necessary to fulfill applications not only at will. To do this, it is recommended to perform a comprehensive audit. There is a need to make sure that each of the houses needs modernization. Only then can it contribute to lower prices for expensive communal and housing services.
The indicator, like energy independence, will not be displayed on the actual tariffs, because the consumption of gas by Ukraine and other resources may be reduced. The government has set a goal – to reduce gas consumption by about 30-40%, but within the framework of an optimistic scenario. Not every house will get such an effect, since an important role is given to the use of individual meters and heat points.