The Conception of Competitive Electric Energy Market in Ukraine on a Postliberal Basis

The formation of a competitive electric energy market is an international obligation of Ukraine and the national interest of its society. Currently, the European model of the electric energy market is being implemented in Ukraine, but in the EU the process of its revision is also underway to accelerate the «green» energy transition. The article expounds that the neoliberal economic paradigm that has dominated the world for the past 90 years needs to be revised to enhance interaction in the interests of society and the environment. The new economic paradigm is recognized as post-neoliberalism, which implies a strategic partnership between the State and business in the interests of society and the environment. The formation of a competitive electric energy market on a post-neoliberal basis is able to ensure the effectiveness of its functioning, prevent electric energy crises and promote sustainable adequate development. The theoretical basis for the formation of a competitive electric energy market should be the theory of the sectoral market, synergetics and the theory of economic mechanisms, the principles of which should constitute the basis of a competitive electric energy market. The electric energy market on a post-liberal basis is based on 3 functions: market effectiveness, electric energy safety, and adequacy of development – and also provides for the introduction of 2 direct economic mechanisms: the commodity market, the market of capacities (mechanisms of the market of ancillary services and throughput capacities are subsidiary to them). The article proposes a conceptual model of a competitive electric energy market on a post-neoliberal basis, highlighting the principles, tasks; defining the roles of participants; formulating a system of hypotheses and provisions for its implementation. The operating model for the introduction of a competitive electric energy market consists of four stages: its identification by key determinants, analysis of development tendencies, construction of an economic mechanism, selection of diagnostic tool

Strategic Aspects of Enhancing Energy Efficiency in Regions of a Country

The aim of the study is to improve the formation of a strategy for enhancing energy efficiency of a country’s regions in the context of sustainable development. The article systematizes the factors which influence the choice of a type of sustainable development strategy and methods of state regulation. The study proves the necessity of transferring the problems of sustainable development from the national to regional levels and achieving a balance between state and market methods of regulating the energy market as well as the priority of enhancing energy efficiency to directthe economy to the path of innovative development. The expediency of using strategies aimed at mobilization, modernization and interactive modernization in the formation of regional strategies for enhancing energy efficiency is established.The essence of the concept “energy efficiency strategy” is clarified. It is understood as the trajectory of improving macro-, micro- and meso-indicators of energy efficiency to solve the environmental, social and economic problems of society. It is proposed that the energy efficiency strategy of aregion be considered as a functional section of its sustainable development strategy aimed at the quality satisfaction of its energy needs, and, on the other hand, as a territorial direction of ensuring national energy efficiency.Based on the method of Management by Objectives, a theoretical approach to the formation of a strategy for enhancing energy efficiency in a region’s industry is presented. It is proposed to develop a regional energy efficiency strategy by economic sectors (groups of energy consumers) using the method of Management by Objectives

Competitive Electricity Markets: Theoretical Approaches and Formation Models

The article presents theoretical approaches to formation of a competitive electricity market: centralized and decentralized ones, making a choice between which depends on the degree of balance of physical and commercial electricity flows in the energy system, which determines the features of market modeling. Regardless of the approach, the modeling of a competitive electricity market is based on justifying its 7 key determinants including geographical delimitation, dispatch method, market infrastructure, time scaling, forms of trade, pricing methods, and product diversification. There is conflicting experience in the world concerning a competitive electricity market and no universal model of it. The analyzed models of the EU, USA and Australia show their significant differences. The decentralized approach was applied in the EU and a four-segment model of a competitive electricity market with zonal delimitation of energy systems was created. In the USA and Australia, the centralized approach with nodal delimitation of energy systems was used, and two- and one-segment models were created, respectively. The models of a competitive electricity market presented in the article also differ in dispatch methods, forms of trade, and products. Their only common characteristic is the orientation towards marginal pricing, although in each of the models it has specific features. Ukraine has formed a quasi-competitive electricity market using the European model. The correction of flaws of this model should be made with regard to the characteristics of the national energy system and the successful experience in liberalizing the electricity markets of other countries of the world, not just that of the EU

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 Role and Place of the Paradigm of Sustainable Development in Scientific Research

The paradigm of sustainable development has become dominant in the world since the end of the Second World War, for the spread of this paradigm international organizations are created that direct society on the path of socio-ecological-economic development. The leading one is the UN Organisation, which has approved 17 Millennium Sustainable Development Goals. The issues of sustainable development are dealt with by scholars from all over the world and from various fields of research, which gives it an interdisciplinary status. The number of scientific studies on sustainable development over the past 50 years has been growing exponentially and in 2022 amounted to more than 0.5 million. The key concept of the paradigm of sustainable development in the world scientific research is «sustainability», while the concept of «sustainable development» itself is subordinate to it, and the concept of «sustainable growth» has not received universally accepted spreading. The leading directions of research on sustainable development in the world were natural and technical sciences related to safety and improvement of life, the economy as a social science was recognized as a necessary organizational-economic wrap for the implementation of sustainable development projects. Although Ukraine has adopted a course towards the implementation of sustainable development goals at the regulatory level, the trends in scientific research lag behind the global ones. The problem field of sustainable development research in Ukraine is narrower, there is a shift in emphasis in the conceptual apparatus, as well as a discrepancy as to the directions of scientific research compared to the global ones. Simultaneously, the problematic field of research in Ukraine is unique and determines the need for sustainable development research not only at the national level, but also at the regional level, given their uniqueness. Russia’s aggression against Ukraine has posed new challenges to sustainable development, until now the main emphasis has been on adapting to vulnerability, while the issue of resistance has had a remote place in the field of research. The aforesaid requires a rethinking of the problematic field of sustainable development research in Ukraine, focusing on the sustainable development of its regions, taking into account the varying degrees of destruction as a result of russian aggression

Prospects for Strengthening the Security of Ukraine’s Energy Supply through Development of Unconventional Natural Gas Production

The article presents an analysis of the American experience in development of natural shale gas in the US, identifies the causes that led to the shale revolution. Its current state is characterized by achieving the peak production simultaneously with shift in the emphasis from natural shale gas to shale oil. The potential technically extracted gas reserves as well as trends in terms of the growth of conventional natural gas reserves and the development of trade in liquefied natural gas are regarded as global preconditions for enlargement of the shale natural gas output. Natural shale gas can be considered as an alternative project only for liquefied natural gas while, compared to pipeline gas, its production is uncompetitive. The national preconditions for development of the industry of nonconventional natural gas production are determined on the basis of the current trends in Ukraine’s gas market. The main obstacles to the realization of this direction are reduction of the gas needs and liberalization of natural gas trade on the basis of European principles. Economic evaluation of the feasibility of natural shale gas production made it possible to forecast its production cost at the wellhead at different depths and estimate its investment attractiveness in different aggregate states. On the basis of the approbation of the presented methodological approach carried out for the Dnieper-Donets and Carpathian shale basins, it was concluded that the investment attractiveness of the first one is higher, given its reservoir properties and the presence of deposits of nonconventional hydrocarbons in different states of aggregation

Assessing the Impact of Ukraine’s International Obligations on the Tariff Policy in the Energy Sector

The article presents an analysis of the existing international legal documents in the energy sphere, which define the features of the national energy policy of Ukraine. Among the main such documents are considered the Energy Charter Treaty, the Treaty on the establishment of the Energy Community, the Association Agreement between the Ukraine and the European Union. These international treaties have primacy over the national legislation, so their provisions should be of top priority in the course of formation of the national energy policy. At the same time, international commitments to implement the national tariff policy in the energy sector are not explicitly written in international documents. This fact allowed Ukraine to implement economically inefficient, non-competitive, and anti-social tariff policy in the energy sector. A systematization together with analyzing of the international obligations of Ukraine has allowed to determine that the following principles should be laid down in the basis of the national tariff policy in the energy sphere: non-discrimination of market participants on national affiliation; full reflection of efficient, including environmental, costs in conditions of sustainable development; transparency of regulatory policy; prohibition of distortion, limitation, and prevention of competition, as well as abusing of dominant position

Conceptual Foundations of Strengthening the Fuel Security of the National Economy

The aim of the article is to substantiate conceptual foundations for strengthening the fuel security of Ukraine under conditions of achieving energy independence from import of finished petroleum products, ensuring energy efficiency of the transformation of primary fuel and energy resources into motor fuel and its energy saving in the transport sector. The key problems in the sphere of liquid fuel use in Ukraine are non-competitiveness of the national oil refining complex, import orientation of the Ukrainian motor fuel consumer, scarcity of the explored reserves of liquid hydrocarbons on the territory of Ukraine, monopolization of transport routes for external deliveries of crude oil. The development of Ukraine’s fuel sector should be implemented on the basis of the national model of fuel security, which provides for balancing the motor fuel market, ensuring sustainable development of the fuel sector and satisfying interests of market actors. The strategic goals of fuel security are defined as energy independence, energy efficiency and energy saving. In the article they were decomposed at the operational level, and the following necessary components were identified: maximization of the national oil production; diversification of external oil supplies with complete abandonment of imports of finished petroleum products, increase in the yield of light oil products; replacement of oil with the national energy potential, saving of motor fuel at the stage of its consumption