THE MECHANISMS OF GOVERNANCE THE DEVELOPMENT RENEWABLE ENERGY IN UKRAINE

Abstract

The sustainable development of the country requires reliable energy supplies at an affordable price, which have a low impact on the environment and low greenhouse gas emissions. However, 85% of primary energy demand is provided by conventional fossil fuel combustion. Attempts by countries to reduce dependence on fossil energy sources lead to government incentives for the introduction of renewable energy sources. Uncertainty in energy supply threatens the functioning of the economy and national security, so the issues of its production and supply are a priority in public policy, regardless of the level of development of the country. The developed energy market is able to regulate the sources of energy supply by the market mechanism. The rational behavior of market participants is aimed at purchasing energy at a lower price. In order to prevent monopolistic collusion on the market and ensure the preservation of the environment, the state intervenes in market mechanisms of energy market regulation. The development of renewable energy in Ukraine is a definite priority of state policy, which corresponds to global energy development trends and the strategic demand for strengthening the country’s energy sustainability. Meanwhile, the default crisis unfolding in 2020 in the electricity market against the background of the СOVID-19 pandemic, creates a precondition for the default of a number of state-owned energy companies due to inflated financial obligations to buy green electricity. The illustrated vulnerabilities of Ukraine’s energy system and its “green” component force us to reconsider our approaches to the economic models used in this sector. The updated economic approach was demonstrated on the example of a review and description of an improved model of consumer value creation, based on an analysis of the real market situation and the needs of stakeholders. The author’s ideas were illustrated on the example of substantiation of investment attractiveness of the SES project and its consumer value, economic characteristics of the project are presented. Under such conditions, the search for effective economic models for the development of green generation becomes one of the priorities for researchers and practitioners in the field of energy projects. The purpose of the study is to systematize the problems of existing projects of solar power plants focused on the sale of electricity at a green tariff, and to develop criteria for developing economic models of autonomous solar power plants focused on meeting market demand of target audiences. In order to avoid crisis processes in the energy sector of Ukraine, state bodies should stimulate projects for the development of alternative energy for autonomous and sustainable local energy system.