Ensuring the Economic Competitiveness of Small Green Energy Projects

Abstract

Small green energy projects are considered an important tool to help poor people achieve sustainable development goals. However, green projects' economic results do not always compete with the traditional energy business. The main reason is the imperfection of the existing renewable energy technologies and the comparatively high energy generation cost with their help. The example of Ukraine, which significantly depends on fossil fuel import and develops renewable energy with state support, shows that green energy competitiveness problems exist within the overall energy market, i.e., convenient energy technologies. The key barriers to increasing the competitiveness of small green energy projects are the lack of available financial resources, the inconsistency of state energy policy, energy pricing gaps, etc. These factors significantly inhibit the spread of green energy technologies in the domestic economy. The competitiveness assessment of the renewable energy business model on the example of a private rooftop solar photovoltaic power plant has proved that green energy generation is available to every household and small business owner and is economically profitable due to existing government support mechanisms. Today, there is no competition in the Ukrainian renewable energy market, so creating a business in this field is relevant. In the long run, competitive green energy projects will provide reasonable electricity prices for consumers and profits for energy producers and stimulate the energy sector's decarbonization. Further directions for improving public policy in the green energy industry are continuing energy pricing reforms, expanding energy efficiency programs focusing on demand management, creating new jobs, and increasing investment in renewable energy sources to ensure energy security and greenhouse gas emission reduction.