Management of renewable energy innovative development in Ukrainian households: problems of financial support

Abstract

The article investigates the current state of management of "green" energy development in the private sector of Ukraine. The mechanisms of economic stimulation, which are used in the countries of the European Union and in Ukraine for the development of the renewable energy sector, are analyzed. On the basis of comparison of domestic and foreign tools revealed the limitation of the economic and financial leverages, which are used in public level in Ukraine to motivate households to implement renewable energy projects as well as the lack of well-established partnership between stakeholders of the real, financial and public sectors. The main stimulus for renewable energy innovative development of the private sector is the feed-in tariff, as well as the simplified procedure for connecting "green" power plants to the general electric grid. Instead, for legal entities additional allowances for the feed-in tariff, tax and other privileges are provided. Taking into consideration the low incomes of Ukrainian households, the authors substantiated the necessity of expanding the range of applicable economic stimulus tools in terms of increasing public financial and credit support for projects on the construction of private renewable energy facilities. In support of this thesis, in the article were made an analysis of the economic feasibility of attracting credit resources to projects on the construction of renewable energy objects in the household sector. Calculations of the net current value and discounted payback periods of projects involving borrowed green loan by Ukrainian and American banks showed that targeted loans provided by Ukrainian banks in their terms do not allow the borrower to return funds at the expense of household income from feed-in tariff. Payback periods of loans far exceed the terms of their provision. The only acceptable option is lending within the framework of the Ukrgazbank Eco-Energy program for 5 years in the amount of 50% of the initial investment, which implies the application of a preferential credit rate of 0,001%. Considering the Clean Energy program of the American Savings Bank, within a 10-year lending period, acceptable alternatives are the attraction of credit resources up to 85% of the volume of required investment, that is, if at least 15% of the own contribution. Thus, clients of the American bank have more favourable conditions for the implementation of renewable energy projects. In order to increase the investment of the population in green energy facilities, the authors substantiated the directions of strengthening public financial and credit support of green energy projects in the private sector of Ukraine.

The Implementation of Corporate Social and Environmental Responsibility Practices into Competitive Strategy of the Company. Marketing and Management of Innovations

“…Taking into account our previous studies (Chortok et al, 2018;Yevdokymova et al, 2018), it should be noted that the theoretical developments largely ahead of the real practice of CSER by Ukrainian companies. CSER impact on competitiveness and possibilities for the better cooperation with stakeholders were studied by such domestic scientists as M. Sukhoterina (Filyppova and Sukhoterina, 2015), which offered to diagnosis of conditions and implementation of social responsibility activities in the activity of machine-building companies, E. Tsybulska and M. Kubarieva (Tsybulska and Kubarieva, 2018), M. Saprykina (Saprykina, 2019), T.…”

“…In our research we took into account the scientific works devoted to the study of sustainable development: aspects of green growth of economics (Shkarupa, 2016), tools to ensure market efficiency (Caporale et. al., 2016), ecologic innovations (Kubatko, 2016), economic mechanisms of government support (Hens, 2018), etc.…”

Фінансові Аспекти Крос-Секторного Партнерства Стейкхолдерів У Реалізації Проектів Сталого Розвитку Громад

“…Дослідження цієї проблематики вітчизняними науковцями в контексті аналізу проблем сталого розвитку здійснювалося у працях: Л. Корнійчук та В. Шевчука [6], І. Макаренко та ін. [7], І. Сотник [8] та ін.…”

A Scoping Review of Renewable Energy, Sustainability and the Environment

“…The deployment of microgrids and virtual power plants is among the many innovations needed to integrate renewable energy sources [35,36]. In addition, the transition to sustainable business models [37,38] requires updating the requirements for flexibility, security [39,40], management of energy systems [41,42]. On the part of the state, such an update can be stimulated via institutions quality standards [43], environmental taxes [44,45], environmental responsibility strategies [46], security [47,48] and ecological standards [49,50], the requirements for industry safety indicators [51,52] and the introduction of comprehensive training programs [53,54].…”