Development of Heat Energy Markets: Experience of European Countries and Conclusions for Ukraine

The purpose of the article is to study the European experience of the functioning of heat energy markets, identify the components of their deregulation, and develop proposals for the formation of regional heat markets in Ukraine. The article stipulates that currently there is no trans-European legislation on the formation of heat energy markets, there are only certain provisions that relate to its production, consumption and accounting. From a theoretical point of view, there are three types of competition in the heat energy markets: between heat supply sources; between producers of centralized heat; between companies for assets. The analyzed experience in the development of heat energy markets in three European countries testifies to the fundamental differences in its structure. Denmark’s heat energy markets are government-regulated, where there is a partial distinction between the functions of production, transportation, and distribution of heat; pricing is carried out on a regulatory basis of non-profit; there are no transparent conditions for access to the network, and the consumer has limited opportunities to disconnect from the system. In Sweden, competition is open at the wholesale level between heat producers; the functions of production and supply are demarcated, and the distribution and supply functions are combined; the retail heat market is self-regulating, which implies the need to coordinate heat prices between suppliers and consumers who, in case of disagreement, have the opportunity to refuse centralized heat supply. Lithuanian heat energy markets are open to wholesale competition and operate in the forward segment, while at the retail level they are regulated, where the transmission from production and supply has been unbundled; regulatory access to heating networks for independent producers has been introduced, and consumers have the right to refuse centralized heat supply. The highlighted features allowed to provide proposals for the formation of heat energy markets in Ukraine, including: the development of competition between heat producers; delimitation of the functions of production, transmission and distribution; formation of its forward, spot and balancing segments; introduction of auctions with the declared pricing method under the pressure of regulatory price restrictions, which are established on the basis of business standards according to the benchmarking system

The Mechanism of Functioning of the State-Regulated Regional Heat Energy Markets

The article is aimed at studying the current mechanism of the State regulation in the field of heat supply, identifying directions for its reform and developing proposals as to the formation of regional heat energy markets. To achieve this aim, the existing procedure for regulating economic activity in the field of heat supply, the mechanisms of functioning of electricity and natural gas markets are analyzed, the principles of functioning of regional heat energy markets are formulated. The study analyzes the content of the concept of «energy carriers market» (on the example of electric and heat energy and natural gas), as well as the basic principles of the functioning of national and regional markets of heat energy carriers. The current mechanism of the State regulation of economic activity in the field of heat supply and natural gas and electricity markets is examined. The direction of improving the regulation of economic activity in the field of heat supply is substantiated – further decentralization of managerial functions and concentration of powers at the level of local communities; creation of regional heat energy markets, which should be in the operational and strategic management of local self-government. The composition of instruments of the State regulation of the regional heat energy market is proposed. The result of the study is the development of proposals for the classification and composition of such groups of the State regulation instruments: regulatory (licensing, establishment of mandatory rules of economic activity, approval of standard forms of contracts, etc.), tariff (approval of the methodology for substantiating the level of tariffs), financial (provision of preferential economic conditions), and monitoring. Prospects for further research on this topic are: development of a model of the regional heat energy market along with a road-map for its construction; development of methodological provision necessary for the functioning of the regional heat energy market; substantiation of directions for improving domestic legislation on the regulation of economic activity in the field of heat suppl

The Technical and Economic Aspects of Creating a Subsector for the Production of Synthetic Liquid Fuels in Ukraine

The article proves that today Ukraine finds itself in a situation where it depends solely on imported supplies of light oil products to meet its motor fuel needs, which is unacceptable from the point of view of the country’s energy and national security, and the solution to this problem lies in the plane of organization of motor fuel production from the country’s own natural resources. The purpose of the study is to substantiate the technical and economic foundations for creating a synthetic motor fuel subsector in Ukraine. To achieve this aim, the authors define the classification of alternative motor fuels; provide a comparative description of the energy content and scope of use of different types of motor fuels, and also provides comparative characteristics of synthetic along with the best grades of natural oil; assess the compliance of synthetic gasoline and diesel fuel with the Euro-4 standard; considers the technical-operational advantages of synthetic analogues of oil fuel over other alternatives. Based on the carried out analysis, the article proves that, given the limited resource capabilities of Ukraine’s motor fuel production from oil and natural gas, the production of synthetic liquid motor fuel (SLMF) from coal raw materials should be recommended for development in the country; the raw material base for the production of synthetic liquid fuel is researched. The article also analyzes the peculiarities of methods and specific technologies for producing synthetic liquid motor fuel from coal and determines that the technology of synthesizing synthetic liquid motor fuel using the Fischer-Tropsch method with preliminary production of synthesis gas by steam-oxygen gasification of coal is advisable for development in Ukraine. Taking this into account, the resource and product balance of the full cycle of synthetic liquid fuel production is formed, a general production scheme of the industry subsector of SLF in Ukraine is developed, technical-economic characteristics of the national and regional industrial complexes for the production of SLF are presented, and the structure of the subsector for the production of SLF in the country is proposed