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Many of the existing buildings in Ukrainian cities are in desolate condition; often roofs are leaking, windows are single glazed or do not close tightly and exterior building surfaces lack thermal insulation to protect against winter cold and summer heat. In addition, many buildings are provided with inefficient and outdated district heating. As a consequence, the energy efficiency of these buildings is very low. Communities and residents alike are confronted with high operating expenses worsened by ever increasing energy costs.

Energy prices are highly subsidized in Ukraine. Subsidized low energy prices discourage households from reducing energy consumption, while public subsidies could be much more sustainably invested in the implementation of energy saving measures.

During the social transformation process within the last two decades, a majority of individual apartments have been privatized. As few of the new owners and landlords have established communal housing associations — so called condominiums — for their residential multifamily buildings, it is very difficult for individual owners to coordinate and finance rehabilitation and implement comprehensive integrated energy efficiency measures for entire buildings. Through the establishment of condominiums and assistance in understanding building operations and maintenance, individual owners are able to coordinate the implementation of comprehensive measures much more effectively.

Energy efficiency concepts are not sufficiently considered and applied in new construction. While official building regulations include energy efficiency standards, they are not consequently enforced during construction.

Thus, the improvement of energy efficiency in existing and new buildings is a central priority of Ukraine’s national energy policy goals to achieve more cost effectiveness, to ensure an adequate energy supply and to improve climate protection.