Introduction. In the modern economic literature, the issue of investment and innovation processes of the electricity industry is practically not considered, as they remain in the plane of economic activity of electricity companies and are not covered information. However, there is a need for a comprehensive approach to investment and innovation processes in the electricity sector of the region and the definition of organizational and economic vectors for the national electricity strategy.
The purpose of the study is the importance and role of investment and innovation processes in the electricity sector of the region.
Results. The article highlights the importance and significance of electricity as an integral resource for sustainable development of the region. The goals of reforming the electric power industry in three directions are detailed: reduction of electricity tariffs, innovative processes of increasing the competitiveness of the electric power industry, innovative processes of reproduction and development of electric power facilities. The algorithm for the relationship between the subjects and objects of the electricity industry is structured. The reasons for the emergence and consequences of such a model of the electricity industry as a "single buyer" are studied, the functional purpose of institutions and entities of the electricity market is explained. The priority directions of investment and innovation processes in the regional electricity markets are highlighted. Ways of their further energy modernization and synergy are outlined.
Conclusions. The innovation process is a set of systematic actions of entrepreneurial activity to revive the efficiency, reliability and safety of activities at high risk. It is outlined that the main features of this mechanism are the presence of various risks; ecological and economic consequences, the generalized effect of innovative measures. However, despite the mesoeconomic nature of the vector of investment and innovation activities in electricity companies, it is worth considering the final macroeconomic effect, which will provide a certain strategic vector for the state development.
Key words: electricity, southern region, power industry, modernization, wholesale energy market.
