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PUBLISHED DATE: - 26-10-2024
https://doi.org/10.37547/tajet/Volume06Issue10-15
PAGE NO.: - 134-141
THE ROLE OF PROPERTY MANAGEMENT IN
PROMOTING ENERGY-EFFICIENT
SOLUTIONS FOR RENTALS
Demchuk Daniil
Individual entrepreneur Czech Republic Prague, Czech Republic
INTRODUCTION
In today's world, energy efficiency issues are
becoming increasingly relevant, particularly in the
context of sustainable development and the need
to reduce negative environmental impacts. With
rising energy prices and increasing environmental
regulations by governments, energy-efficient
solutions are gaining significant importance for
both private and commercial real estate
properties. Property management is becoming a
key mechanism in implementing these solutions in
practice, directly influencing the operational
performance of buildings and conditions for
tenants.
The relevance of this topic is driven by the fact that
effective property management not only reduces
utility costs but also increases the market value of
properties, making them more attractive to
tenants focused on sustainability and reducing
their carbon footprint. In such circumstances,
renting properties with high energy efficiency
standards becomes a preferred strategy for
companies seeking to minimize operating
expenses and comply with environmental
regulations. This is particularly important in
countries like the Czech Republic, where
government policies actively support the
development of energy-efficient technologies and
encourage their use in commercial and residential
real estate.
The aim of this study is to analyze the impact of
property management companies on the
implementation of energy-efficient technologies to
enhance the competitiveness of properties and
reduce operating costs.
RESEARCH ARTICLE
Open Access
Abstract
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MATERIALS AND METHODS
The Czech Republic does not possess extensive
reserves of fossil fuels (Table 1). Globally, in terms
of proven oil and natural gas reserves, the country
ranks 85th and 93rd, respectively. As of 2024, coal
accounts for 99.8% of the country's proven
reserves in tons of oil equivalent, natural gas for
0.1%, and oil for 0.1%. The most significant
resource for the country is coal, with reserves
estimated at 35.2 million barrels in 2021 [1].
Table 1. Fossil energy resources of the Czech Republic [1]
Resource/
Explanation Crude Oil*
Natural
Gas*
Coal*
Shale Gas
Tight Oil
Coalbed
Methane
Value
15 (0.001%)
0.14
(0.002%)
3,962
(0.34%)
-
-
1.8 - 7.8
Unit
million
barrels
Tcf
million short
tons
-
-
billion cubic
meters
*Figures in parentheses indicate the country's share in global reserves.
The key indicators reflecting the volumes of these resources are shown in Table 2. The technical potential
of hydropower that can be efficiently utilized in the country is estimated at 3,978 GWh per year,
approximately seven times lower than the corresponding figure in Austria. The level of global horizontal
irradiation across most regions of the Czech Republic ranges from 3.0 to 3.1 kWh/m² per day, while in
the regions of Southern and Northern Moravia, this value can exceed 3.1 kWh/m² per day, which is
comparable to figures recorded in Denmark, southern Sweden, and Belgium [1].
Table 2. Renewable energy resources of the Czech Republic [1].
Resource/Expl
anation
Solar
Potential
(GHI)*
Wind
Potential (50
m)*
Biomass
Potential
(agricultural
area)
Biomass
Potential
(forest area)
Municipal
Solid Waste
Value
3.0-3.1
5.5-6.5
45.7
34.7
570
Unit
kWh/m²/day
m/s
% of land area % of land area kg per capita
*For the majority of the country's territory
**Technically exploitable potential
The distribution of wind potential in the Czech
Republic is characterized by the following
indicators: in most areas, wind speeds range from
5.5 to 6.5 meters per second, although in the
eastern regions and the territory of Northern
Moravia, this figure can exceed 7 meters per
second at a height of 50 meters. These data
indicate the prospects for the development of wind
energy in the country's energy sector, providing an
opportunity to compete with other local renewable
technologies such as bioenergy. According to the
BP Statistical Review of World Energy 2023, the
energy balance of the Czech Republic shows that
the total primary energy consumption in 2021
amounted to 1.68 exajoules. Of this volume, 32.1%
came from coal, 24.4% from oil, 19.6% from
natural gas, 16.7% from nuclear energy, 5.9% from
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other renewable sources, and 1.2% from
hydropower [2].
In the electricity sector, the Czech Republic
continues to use fossil fuels and nuclear energy,
although there has been a general decline in the
share of fossil fuels in the electricity generation
structure. Due to the lack of significant oil and
natural gas reserves, the Czech Republic holds a
minor position in global rankings in terms of
production and consumption of these resources.
However, in terms of coal reserves and usage, the
country holds a more stable position. The Czech
Republic ranks 50th out of 170 countries in terms
of the share of electricity generated from
renewable sources, excluding hydropower [3].
The territorial map of key infrastructure facilities
in the fossil fuel and electricity production sectors
in the Czech Republic is shown in Figure 1. Coal
remains the main component of the country's
energy resources, accounting for 99.8% of the total
volume, while natural gas and oil each account for
0.1%. The most significant coal mine is Nastup
Tusimice & Bilina, with an output of approximately
21 million tons per year. Among oil fields,
Dambořice leads with a production capacity of
4,700 barrels per day. Oil storage is carried out at
the largest storage facility in Nelahozeves (Mero
ČR terminal), with a capacity of 1,550,000 cubic
meters. The country operates three oil refineries,
of which the Litvínov refinery is the largest, with a
capacity of 120,000 barrels per day. Oil
transportation is carried out through a pipeline
network with a total length of 536 and 94 km.
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Fig.1. Electricity generation and renewable energy sources in the Czech Republic [3].
Among the most significant power plants in the
country are the coal-
fired Prunéřov I
-II complex
with an installed capacity of 1190 MW, the Temelín
nuclear power plant with a capacity of 2160 MW,
and the Hodonín combined power plant with a
capacity of 105 MW. As previously mentioned, in
2023, electricity production from renewable
sources (excluding hydropower) reached 8.99
TWh. In areas with favorable wind conditions,
there are 11 large wind farms, each with a capacity
of over 7 MWh. The total installed capacity of wind
power in the Czech Republic is 278 MW, with the
largest wind farm being Margonin, which has a
capacity of 42 MW [27]. In regions with high levels
of solar radiation (up to 3.1 kWh/m²), numerous
solar power plants are located. The largest
photovoltaic power station is Ralsko Ra-1, with a
capacity of 38.3 MW.
Housing and energy poverty have a significant
impact on various aspects of life and have become
a focus for many governments in Europe. To
address this issue, subsidy programs aimed at
improving energy efficiency and household energy
security are being implemented, such as support
for solar energy, insulation, and modernization of
heating systems. The Czech government plans to
increase the installed capacity of hydropower
plants to 1,127 MW, wind farms to 970 MW, and
solar stations to 3,975 MW by 2030. The country
also operates biomass processing plants and
facilities for the production of biodiesel,
bioethanol, pellets, and other types of biofuels.
The transition to renewable energy sources (RES)
requires the development of systems that account
for technological, territorial, and managerial
features, as well as the involvement of various
stakeholders, such as energy producers and
consumers. One of the most important forms of
such innovations has been the creation of energy
communities, which are cooperatives of citizens
and organizations aimed at establishing more
sustainable energy systems. At the same time,
different models and levels of participation in
these projects demonstrate that the community
can act as both an active energy producer and
consumer.
The European Union actively promotes the
concept of energy communities, which is reflected
in legislative initiatives such as the Renewable
Energy Directive (RED II) and the Internal
Electricity Market Directive (IEMD) (Directive,
2018; Directive, 2019). These documents create
conditions for the involvement of citizens in the
energy
sector
and
contribute
to
the
decentralization of energy management (Tosun et
al., 2019) [5].
The European Bank for Reconstruction and
Development (EBRD) supports the enhancement
of energy efficiency in the housing sector of the
Czech Republic by providing a loan of €110 million
to Heimstaden Bostad, which manages the largest
private rental housing portfolio in the country [6].
In collaboration with commercial banks, the EBRD
directs funds toward the comprehensive
environmental renovation of Heimstaden Bostad’s
residential properties, covering approximately
42,500 housing units, according to the bank's
statement. The primary objective of this "green"
loan, aimed at sustainable development, is the
modernization of buildings, including the
implementation of thermal insulation materials
and the transition to low-carbon energy sources,
such as renewable energy and heat pumps.
It is anticipated that such environmental
investments will enable the company to achieve its
goal of reducing greenhouse gas emissions by 42%
by 2030, using 2020 as the baseline year. Since the
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majority of emission reductions are expected to
come from
the Czech portfolio, the EBRD’s
financing will be a crucial factor in achieving this
goal.
The study by Sokolovsky and colleagues [7]
highlights the link between inadequate housing
conditions and inefficient heating systems, which
increase the risk of illness. Their survey of 1,735
respondents from two mid-sized cities in Poland's
coal region revealed that residents living in
unfavorable housing conditions are more likely to
suffer from musculoskeletal and cardiovascular
diseases. Respiratory problems were also noted
among those using coal or wood stoves instead of
central heating [8,9]. Similar conclusions were
drawn by Jessel and colleagues, who pointed to the
negative impact of energy instability on health,
particularly in conditions of poverty and climate
change. Kopp and co-authors argue that energy
poverty is often accompanied by a lack of water
resources, which leads to associated health
problems.
Water
instability,
undeniably,
represents another related challenge.
To ensure the accuracy of the data, a statistical
evaluation of price proposals is conducted; offers
with detected errors are excluded from the
analysis. Additionally, listings with unrealistic
prices are removed from the sample to account for
the difference between the stated price and actual
market values [10].
Thus, it can be concluded that the Czech Republic
is actively developing the renewable energy sector,
including solar and wind power plants. Programs
aimed at improving energy efficiency and
introducing innovative technologies, such as
energy communities, demonstrate the country's
commitment to energy independence and
sustainable
development.
Support
from
international organizations like the EBRD
contributes to environmental investments focused
on reducing emissions and modernizing the
housing stock, which is also linked to improving
the health and living conditions of the population.
RESULTS AND DISCUSSION
There are several specific examples of successful
projects in the Czech Republic and Europe related
to the implementation of energy-efficient solutions
in real estate management:
1. Futurama Business Park Office Building in
Prague. One of the office buildings in the
"Futurama" business park in Prague introduced
advanced energy management systems, including:
- Smart lighting systems that adjust light intensity
based on natural daylight and the presence of
people.
- Energy-efficient heating and cooling systems
using heat pumps.
As a result, energy-efficient technologies helped
reduce heating and lighting costs by more than
25%. The project also received the BREEAM
environmental certification, which increased the
building's attractiveness to tenants seeking
sustainable business practices [11].
2. Building Modernization under the "Zelená
úsporám" Program. This program was developed
by the Czech government to support the
modernization of residential and commercial
buildings to improve their energy efficiency. One
example is the modernization of a multi-story
residential building in Brno:
-
Solar panels were installed for water heating
and electricity generation.
-
Old windows were replaced with energy-
efficient double-glazed windows.
-
Modern thermal insulation materials were
applied to the walls and roof of the building.
These measures reduced heating costs by 40% and
allowed the investments to pay off in less than five
years. The program subsidized up to 30% of the
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modernization costs, making the project
financially attractive [12].
3. "The Park" Project in Prague. The office complex
"The Park" is a large-scale project that includes the
use of advanced technologies for energy-efficient
management:
- Automated ventilation and air conditioning
systems with high energy efficiency.
- A centralized Building Management System
(BMS) that optimizes energy consumption based
on time of day, outdoor temperature, and other
factors.
Thanks to these technologies, energy costs were
reduced by 30%, and the attractiveness of the
properties to tenants increased, making the
complex one of the most sought-after business
centers in Prague [13].
4. Reconstruction of a Residential Building in
Karlovy Vary. A residential building in Karlovy
Vary underwent a complete modernization of its
heating system and facade insulation:
- Biomass boilers were installed, allowing the use
of renewable energy sources for heating.
- Complete thermal insulation of the building was
implemented, significantly reducing heat loss.
As a result, energy consumption for heating
decreased by 35%, with the payback period for the
investment being approximately six years. This
project was partially funded by the European
Union under a program supporting energy-
efficient solutions [14].
Thus, it can be stated that property management
plays a key role in promoting energy-efficient
solutions in the leasing of properties. In this role, it
involves the planning, implementation, and
monitoring of the introduction of technologies that
help reduce energy consumption and improve the
operational performance of buildings. Through
energy efficiency, landlords can offer more
competitive rental terms, and the properties
themselves become more attractive to tenants.
Several key aspects and outcomes that property
management can ensure in this context include:
The
implementation
of
energy-efficient
technologies (such as smart lighting systems,
thermostats, insulation, and renewable energy
sources) significantly reduces heating, cooling,
lighting, and other utility costs.
Energy-efficient systems often require less
maintenance due to process automation and
improved technologies, reducing operating costs
in building management.
Modern energy-efficient buildings offer more
comfortable working or living conditions as they
provide more stable temperatures, better
ventilation, and quality lighting. This can lead to
tenants staying longer in such properties, reducing
costs associated with finding new clients.
Longer lease terms and tenant loyalty reduce the
costs associated with vacant spaces and the need
to find new clients, further strengthening the
financial stability of property owners.
The introduction of energy-efficient solutions
helps property owners comply with modern
environmental
standards
and
regulatory
requirements, which are becoming increasingly
stringent in Europe and the Czech Republic. This
reduces the risk of fines and additional
modernization costs in the future.
Properties certified under standards such as LEED
or BREEAM gain an additional market advantage.
These certifications demonstrate compliance with
high standards of energy efficiency and
sustainability, which can be a decisive factor for
tenants when choosing a property.
Therefore, property management that actively
promotes energy-efficient solutions contributes to
the creation of a sustainable and economically
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advantageous business model that provides long-
term benefits for both landlords and tenants.
CONCLUSION
Thus, it can be concluded that property
management plays a crucial role in promoting
energy-efficient solutions, ensuring sustainable
development and competitiveness in rental
properties. The analysis has shown that the
implementation of modern energy management
technologies, such as intelligent lighting and
heating systems, as well as process automation,
significantly reduces operational costs and
increases tenant satisfaction. In particular, the
adoption of energy-efficient measures leads to a
20
–
40% reduction in utility costs, enhances the
market value of properties, and makes them more
attractive to environmentally conscious tenants.
Successful project examples in the Czech Republic
confirm that government support and the
integration of innovative solutions are important
factors in the transition to energy-efficient
standards. Thus, property management becomes a
key tool for achieving sustainability and long-term
profitability in the rental market, contributing to a
reduced
environmental
footprint
and
strengthening the competitive position of
properties in the market.
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