Armenia is undertaking an extensive effort to strengthen and modernise its aging apartment buildings, aiming to extend their lifespan and improve energy efficiency. With most of these buildings constructed 30 to 60 years ago, the ongoing project involves thermal insulation, fitting energy-efficient doors and windows, modernisation of heating and cooling systems, and the installation of solar photovoltaic systems and energy-efficient lighting. The initiative, known as Energy Efficient Building Retrofitting, has been led by the United Nations Development Programme since 2017 and is supported by the Armenian Ministry of Environment.
Residents, like Arus Mkrtchyan, who bought an apartment in a modernised building in Spitak, have benefitted from significant cost reductions. Previously, Arus would spend up to AMD 40-50,000 (US$ 105-130) during winter to heat her two-room apartment. However, after moving to her new three-room apartment, she paid only AMD 26,000 (US$ 68) for gas and another AMD 8,800 (US$ 23) for electricity in January. The financial savings and increased comfort have made living in such a modernised apartment highly desirable.
The programme faces challenges in gaining consent to participate from all of the tenants in a building. However, those who do join the programme benefit from reduced energy costs. The government of Armenia, along with local mayors’ offices and the “Reducing the Risks of Investments in Energy Efficient Modernisation of Buildings” programme, co-finance the project. Energy efficiency expert Artur Tsugunyan estimates that such measures can save between 40-50% of conventional costs, significantly increasing thermal comfort and improving people’s quality of life.
The programme extends beyond the capital city, Yerevan, to include various regions of Armenia. Buildings have been transformed and modernised in cities such as Alaverdi, Tashir, Dilijan, Spitak, Berd, Gyumri, Kajaran, and Ashtarak, not only residential buildings but also kindergartens, schools, and cultural centres. The initiative also stimulates green loans from Armenian banks, facilitating investments in energy-efficient components such as solar panels, thermal insulation, and lighting upgrades.
Energy efficiency improvements contribute to the reduction of greenhouse gas emissions and help Armenia to achieve its environmental goals. The energy savings resulting from the programme are expected to reduce carbon dioxide emissions by up to 1.4 million tons over 20 years. As household energy consumption comprises a significant portion of the country’s energy usage, retrofits play a crucial role in reducing emissions. With more than 4,000 panel houses in Armenia, there is immense potential for energy efficiency improvements.
Apart from the environmental benefits, enhancing energy efficiency also has positive economic implications. An energy-efficient environment attracts both foreign and domestic investment, fosters job creation, and stabilises financial flows within the country. The construction sector experiences growth, with labour force retention and increased tax revenue. The process of improving energy efficiency in buildings creates new financial opportunities for professionals in related fields, further stimulating economic development.
The above-mentioned energy-efficient measures, for any apartment buildings, old or new, are also supported and financed through the Green Economy Financing Facility (GEFF). The GEFF plays a crucial role in providing the necessary funding to implement these energy efficiency initiatives, contributing to achieving Armenia’s sustainable development goals and creating a greener future for its residents.