ArmInfo. Most buildings in Armenia were built during the Soviet years. Heating in such houses is more expensive. This affects not only the pockets of citizens, but also the climate. Meanwhile, modern technologies can not only reduce CO2 emissions and costs for residents, but also increase the cost of such buildings.
In 2017, the United Nations Development Program (UNDP), with funding from the Green Climate Fund and coordination of the Ministry of Environment of Armenia, set itself this goal and launched the program "Reducing investment risks for energy efficient modernization of buildings" with a budget of $20 million. More than 200 buildings in the country have already become beneficiaries of the program 18 communities of the country, and taking into account its demand in 2024, the program was extended for 2 years.
Goal and methods of achievement
The main goal of the program is to reduce greenhouse gas emissions, the level of which was only for 2000- 2019. increased approximately 7 times. According to program experts, the residential sector is one of the largest consumers of energy and reducing the level of energy consumption in buildings will achieve the desired goal. Investments in this direction over 20 years are expected to achieve CO2 reductions of 1.4 million tons.
The program consists of 4 components: training and monitoring, development and "modernization" of the legislative framework, reduction of financial risks and an investment component, within which co- financing of energy modernization (EM) of buildings is carried out. The budget for the last component is $14 million.
According to the program coordinator, representative of the Office of Environmental Programs of the Ministry of Environment of Armenia Armen Adzhamoglyan, the first component provides for the localization of the energy management information system, which will soon be ready in overview form. This will answer many questions related to the potential of buildings, most of which were built in Soviet times, and which consume more electricity to ensure optimal temperature standards for residential premises. The buildings included in the program (there are about 200 of them) also underwent an energy audit and were marked according to the electricity consumed. "Energy labels give a clear and simple picture of the building's energy efficiency (initial classification) and what work needs to be done to improve energy efficiency levels," he explains.
In addition, taking into account the personnel shortage, within the framework of the program, cooperation with universities has been established, advanced training courses are being conducted for energy auditors, and an institute of energy managers is being introduced. The latter is a prerequisite for communities that have joined the program. And, since energy efficiency also involves the development of an appropriate behavioral approach, work is being carried out in parallel to inform the public, both about how to become part of the program and to raise awareness in the field of energy saving.
How the program works and who it is for
The program started in June 2017, but the investment stage began only in the fall of 2020. It was then that permission was received to co-finance work on energy modernization of buildings. To date, 152 residential buildings in 15 communities of the country and 52 public buildings in 5 communities have received co- financing. Currently, EM of 40 residential and public buildings is at various stages of implementation.
In the same 2020, energy-efficient modernization of residential buildings, following negotiations between the UN and the Government of the Republic of Armenia, was included in state subsidy programs. That is, if the residents of the building decide to modernize it, and the local municipality submits an application for participation, which will subsequently be approved by the Cabinet of Ministers, the work on EM will be financed from three sources: the community budget, the state treasury (in the amount of 40-50%) and grant funds from the program ( in the amount of 25%). The participation of the residents themselves will be 5%. UNDP co-financing for renovation of public and municipal buildings will be 20%.
Any building, residential or public, in any region of the republic can become a beneficiary of the program, notes the coordinator of the UNDP-GCF program "Reducing the risks of investments aimed at energy- efficient modernization of buildings" Vahram Jalalyan. However, emergency buildings cannot be included in it. Thus, houses of the 3rd and 4th degrees can qualify for participation in the program if the project provides for an increase in the level of its seismic resistance and strengthening work.
Increasing the energy efficiency of buildings is achieved by insulating external walls, roofs and basements, replacing/installing doors and windows, and constructing vestibules on staircase landings. Modern LED lighting systems are also installed. For thermal insulation of buildings, explains construction program consultant Andre Ohanyan, materials are available that are available on the local market and which do not greatly burden the building structure, since Armenia is located in a seismically active zone. In particular, in one of the buildings in Spitak, the thermal insulation of external walls was carried out with extruded polystyrene foam 100 mm thick, a disc dowel was used, and the roof was insulated with mineral wool. As a result, residents' electricity costs were reduced by 3.5 times, and the building's energy efficiency class was increased from to .
For the 2025 fiscal year, the Spitak community submitted an application to participate in the program (within the framework of state subsidy programs) for thermal insulation of the roofs of 17 apartment buildings and two public buildings. In the future, as the deputy head of the community Artak Matosyan said, there is hope to insulate the external walls.
In Stepanavan, 9 buildings became beneficiaries of the program, 5 houses are awaiting approval of their application.
In the Dilijan community, 6 apartment buildings and 2 public buildings have been modernized, and 5 more buildings are in the process. In 2026-2027, renovation of a number of buildings is planned, the list has not yet been specified, notes Vardan Mkrtchyan, a representative of the city municipality.
Expectations and reality
Those who have already completed work on energy-efficient modernization of residential buildings note that the heating season "eats up" less money, and those who are waiting their turn hope for quick approval of their application.
"After thermal insulation of our house, the apartment became 4-6? C warmer," says a resident of Spitak on Rumanakan Street.
According to experts, complete thermal insulation of one 9-story single-entrance apartment building (the so-called DSK building of 36 apartments) costs 60-65 million drams. Even if we imagine that the community will not participate in co-financing, then the residents of the house will account for only 75% of all costs (everyone will pay according to their living area). At the same time, they have a reduction in heating and cooling costs by 40-60% of expenses, and as an additional benefit - the market value of apartments increases by 10-15%. To be continued?
One of the main achievements of this program, according to UNDP Permanent Representative Natia Natsvlishvili, is the formation of a culture of energy efficiency in the country.
At the same time, according to Natsvlishvili, despite the demand for the program, at this stage, when there are still 2 years left before the completion of the program, it is difficult to answer the question whether the program will continue to be funded. "UNDP wants to continue its implementation, but this depends on many factors," she said. "UNDP implements numerous projects in various fields, but the most successful can be considered those that are aimed at achieving the climate agenda," sums up Natia Natsvlishvili.
