Research is aimed at reducing the energy loss of foundry class arc furnace, which belongs to energy-consuming units with a non-rhythmic work schedule, and characterizes by low energy efficiency. Method of numerical modeling substantiates the concept of furnace modernization, which consists in rising the specific electric power by lowering the capacity at constant productivity, relative increasing of the liquid bath depth, reducing accumulation heat loss by refractory lining through introduction of energy saving water-cooled elements with a spatial structure in its local areas and intensification of heat and mass transfer processes in the "deep" bath with pneumatic stirring. It is determined that for arc furnaces with capacity of 12 and 6 tons, working in one shift, it is rational to reduce the capacity to 6 and 3 tons respectively and the bath shape factor (ratio of diameter to depth) from 5 to 2.5; installation of water-cooled elements in central endurance critical part of the roof and upper parts of the walls with coverage of 0.20-0.32 and 0.5-0.8 of working surface, respectively. With regard to the economy of heating systems, the expansion of the cooling system for the economic efficiency of modernization is 12 tons of chipboard with magnesite lining, so in the small world, dinas lining. For 6 t furnaces of water-cooling elements at the same time the magnesite lining is also effective, the protector is more cheap acidic lining (dinas), however, the water-cooling elements require a larger analogue. With available supply transformer, the specific power increases to 1 MVA/t, which will allow, due to intensification of heat and mass transfer processes, provide quantitative and qualitative indicators of production with lower, compared to the basic unit, heat loss. The implementation of proposed solutions will reduce energy consumption by 75 kWh/t and, taking into account the cost of refractory, provide an economic effect of 320-515 UAH/t