UKRAINE IN THE GLOBAL RENEWABLE ENERGY MARKET

Abstract

The purpose of the research is to study and analyze the renewable energy market development and Ukraine's place in it, to develop recommendations for their effective implementation and optimization, including for an alternative vector of Ukraine's energy sector development. The renewable energy issue is particularly actual today because of the traditional energy infrastructure destruction as a result of the war in Ukraine. In the context of the energy crisis in 2022, it became obvious that the bioenergy sector of Ukraine plays an important role in the state development. Due to the extremely high prices for natural gas, bioenergy can become a main factor in meeting part of the needs for heat and electricity. The study is based on the analysis of scientific literature devoted to the renewable energy market development, as well as empirical data obtained from open sources, reports of analytical issues. To achieve the set goals, a set of scientific methods that provided a comprehensive analysis of the problem are used. Thus, the methods of generalization, synthesis and comparison made it possible to systematize the obtained results, identify trends and patterns of the researched issue, the structural-system method made it possible to study the realities and conditions of the functioning of the renewable energy market; the analytical method was used to formalize the research results. Despite the set goals, the growth rate of renewable energy generation is quite slow. Systemic problems and the lack of conditions for the rapid overall development of renewable energy generation and consumption are a deterrent to foreign direct investment. The main problems include the following: distrust of foreign and domestic investors in the renewable energy sector with the state, instability of investment legislation in terms of investment guarantees and protection; the energy regulation problems, including deficit tariffs for system operators' services, cross-subsidization mechanism, imperfect allocation of funds, inefficient methods of fund allocation; lack of incentives and simplified methods for developing renewable energy generation and consumption, complex of environmental procedures, difficulties in connecting to transmission and distribution systems. For the successful development of the renewable energy market, it is necessary to take specific steps to solve existing problems that hinder the inflow of domestic and foreign investments. In particular, it is necessary to: provide the market with the necessary financial resources and regulate the settlement process; ensure quarterly monitoring and review of tariffs.