The Role and Significance of Investment and Innovation Processes in the Electricity Industry of the Region
Abstract: 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 st… Show more
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The emergence of state-owned enterprises, Market Operator and Guaranteed Buyer, which are responsible for the operation of the day-ahead and intraday market and form the price policy for payment of electricity services to producers and suppliers that use renewable energy sources, i.e., work according to "green tariff" and "regulated tariff" for the needs of the population. It was noted that energy is distributed within the UES by energy supply companies licensed to provide electric energy at regulated and non-regulated tariffs. It is outlined that the actual results of the processes of reforming the electricity market are: the organization of the electricity market segments, which allows to consider the day-ahead market as the leading indicator of price formation; two trade zones operating at the same time, the United Energy System of Ukraine and the energy center of the Burshtyn TPP, where different prices have been formed due to the generation structure; the possibility of using the export potential of electricity according to the principles of ENSTO-S has been launched, which promotes general agreement between supplier countries, increases competition, forms a system of balanced results with the minimization of losses, accelerates the processes of integration of the electricity market of Ukraine into the European energy system. At the same time, the electricity market of Ukraine faces many challenges and threats, among which the countdown to the implementation of the free electricity market model was not accompanied by objective reasons by changes in regulated electricity prices for specific categories of consumers (population) and cross-subsidization, which ultimately caused significant financial stress to the state-owned enterprises Energoatom and UkrHydroEnergo, which are subject to the imposition of special duties; the practice of operating auctions for renewable energy sources in order to optimize their value is not implemented correctly. In this area, only the construction of such objects took place under the conditions of fixing the "green tariff"; led to a drop in economic development, significant consumer debt, and a decrease in electricity consumption, as a result of a drop in prices, an increase in the deficit and debt coverage for select categories of consumers; the significant accumulation of the debt burden of SE Energorynok in front of a significant number of generating companies, requires immediate state regulation and the adoption of a particular law regarding the further resolution of this problem; replacement of old capacities with new ones with a quick start for balancing and functioning of gas piston units and energy storage systems. It became known that in terms of its actual content, the electric power industry has several specific features that characterize its energy orientation: the change of parameters depending on the field of application, the simultaneity of the processes of production and consumption as an energy resource; constancy and identity of volumes of produced and consumed electrical energy; lack of possibilities for reservations in the form of goods; the impossibility of a predictable assessment of resource generation and consumption; complete dependence of the production component on consumer demand. In addition to the circumstances of the economic direction, specific properties are also characteristic of electric energy, which is related to its essential purpose as an energy resource: power; time; terms and conditions of consumption; quality; distance; variability. Today, the already existing positive and negative consequences of the effectiveness of state economic regulation of the electricity market should be noted. As for the negative consequences, it should be noted the versatile and non-uniform nature of the application of various forms and methods of pricing to electricity producers; tax imbalance due to the lack of necessary tax and budget levers for regulating the electricity industry; the practice of the cross-subsidization system of some consumers at the expense of others through the wholesale market price (ORC) for electric energy. A review of safety criteria in the country's electric power sector shows the imperfection of the electricity market and the need to strengthen the relevant safety tools. Keywords: electric energy, electric power industry, energy, electric power safety, energy market of Ukraine.
The emergence of state-owned enterprises, Market Operator and Guaranteed Buyer, which are responsible for the operation of the day-ahead and intraday market and form the price policy for payment of electricity services to producers and suppliers that use renewable energy sources, i.e., work according to "green tariff" and "regulated tariff" for the needs of the population. It was noted that energy is distributed within the UES by energy supply companies licensed to provide electric energy at regulated and non-regulated tariffs. It is outlined that the actual results of the processes of reforming the electricity market are: the organization of the electricity market segments, which allows to consider the day-ahead market as the leading indicator of price formation; two trade zones operating at the same time, the United Energy System of Ukraine and the energy center of the Burshtyn TPP, where different prices have been formed due to the generation structure; the possibility of using the export potential of electricity according to the principles of ENSTO-S has been launched, which promotes general agreement between supplier countries, increases competition, forms a system of balanced results with the minimization of losses, accelerates the processes of integration of the electricity market of Ukraine into the European energy system. At the same time, the electricity market of Ukraine faces many challenges and threats, among which the countdown to the implementation of the free electricity market model was not accompanied by objective reasons by changes in regulated electricity prices for specific categories of consumers (population) and cross-subsidization, which ultimately caused significant financial stress to the state-owned enterprises Energoatom and UkrHydroEnergo, which are subject to the imposition of special duties; the practice of operating auctions for renewable energy sources in order to optimize their value is not implemented correctly. In this area, only the construction of such objects took place under the conditions of fixing the "green tariff"; led to a drop in economic development, significant consumer debt, and a decrease in electricity consumption, as a result of a drop in prices, an increase in the deficit and debt coverage for select categories of consumers; the significant accumulation of the debt burden of SE Energorynok in front of a significant number of generating companies, requires immediate state regulation and the adoption of a particular law regarding the further resolution of this problem; replacement of old capacities with new ones with a quick start for balancing and functioning of gas piston units and energy storage systems. It became known that in terms of its actual content, the electric power industry has several specific features that characterize its energy orientation: the change of parameters depending on the field of application, the simultaneity of the processes of production and consumption as an energy resource; constancy and identity of volumes of produced and consumed electrical energy; lack of possibilities for reservations in the form of goods; the impossibility of a predictable assessment of resource generation and consumption; complete dependence of the production component on consumer demand. In addition to the circumstances of the economic direction, specific properties are also characteristic of electric energy, which is related to its essential purpose as an energy resource: power; time; terms and conditions of consumption; quality; distance; variability. Today, the already existing positive and negative consequences of the effectiveness of state economic regulation of the electricity market should be noted. As for the negative consequences, it should be noted the versatile and non-uniform nature of the application of various forms and methods of pricing to electricity producers; tax imbalance due to the lack of necessary tax and budget levers for regulating the electricity industry; the practice of the cross-subsidization system of some consumers at the expense of others through the wholesale market price (ORC) for electric energy. A review of safety criteria in the country's electric power sector shows the imperfection of the electricity market and the need to strengthen the relevant safety tools. Keywords: electric energy, electric power industry, energy, electric power safety, energy market of Ukraine.
Investigating the issue of regulation of the energy security system of the state, it is worth noting the complete lack of systematicity, as well as the lack of orderliness of regulatory and legal documents that ensure regulation of the energy sector. Regulatory and legal acts of the specified industry function under conditions of lobbying by individual subjects, under conditions of inconsistency in the priority directions of their development; the existence of regional energy markets, isolation of security positions of energy enterprises, ecological and technological requirements, standardization, licensing, etc. The essential aspect of forming physical protection of energy facilities is relying on business entities. The costs of ensuring the appropriate security are included in the gross costs upon prior agreement with the Regulator of Energy Markets. However, the Regulator currently does not have the legal authority to take into account such categories of expenses, which makes it impossible to legitimize the source of defense funding. It is worth noting that the energy infrastructure is not protected at the departmental level beforehand without appropriate coordination and coordination with other priority strategies and measures to ensure national security. The mentioned circumstances testify to threats to the energy security system due to the non-regulation of the legislative basis and foresee the need for significant improvement of mechanisms and tools of protection from the side of regulatory and legal support. The current circumstances of the economic system of Ukraine have caused changes in the energy legislation. Now, the new energy environment is being formed, which cannot be clarified by rigid regulatory documents. The implemented changes affect not only the peculiarities of the relationship between energy market subjects (producers, consumers, and the state) but also put pressure on the principles of regulation of the latter's activities; it refers to the application of EU approaches, the rejection of administrative levers for regulating the activity of markets and state paternalism, etc. The result is the emergence of new threats to the uninterrupted functioning of the country's energy sector due to the use of energy methods as an analog of "energy weapons." In turn, the previously accepted mechanisms and tools of management activity in the energy security system should be reviewed. The purpose of this article is a multifaceted study, as well as the determination of aspects, normative and legal foundations of the regulation of the energy sector of Ukraine, which are possible conditions for the European integration of the state. Keywords: energy sphere, European integration, national security, regulatory and legal foundations, energy security.
In general, the crisis in the energy sector that is taking place today is directly related to the investigation of energy pressure on Ukraine by Russia, which for decades has been using means for the implementation of energy policy as tools for various kinds of political pressure. In this regard, at the thematic summit held at the beginning and end of 2021, the EU confirmed a high degree of readiness for a phased abandonment of energy resources from the Russian Federation. As a result, as a result of forecasting, it is assumed that already in 2023, alternative energy sources will allow a significantly reduce the dependence of the EU energy sector on Russian natural gas. A substantial restructuring of the energy market today especially jeopardizes the regulatory processes implemented in the practical part until today. It is not a secret that modern changes in various technological processes based on global network-related energy connections actualize the problem of expanding the energy market. Therefore, all these mentioned aspects significantly influence the process of understanding a new practical and theoretical approach to the essential indicator of the "world energy market,", especially from the point of view of its reflection of increasing homogeneity and homogeneity. First, the density of energy flows, transit, and logistic connections forms a position for understanding the unity of the world energy market, its boundlessness, and spaciousness. At the same time, given the independence of each state that is part of the specified market, there is a need for a mental understanding of the principles, norms, standards, and instruments of its regulation. This and other related questions were the basis for a scientific solution to today's significant problem. It is also worth noting that the mechanism of law of the world energy market is nevertheless influenced by the activities of the organizations, as mentioned earlier. Still, the energy pressure from Russia constantly poses new challenges, which in their content involve changes in the activities of the institutions, as mentioned earlier, and the states within which they operate, regarding the formation of a new policy for the regulation of the global energy market under these circumstances. Under these conditions, the EU seeks to ratify a political agreement on the voluntary reduction of consumer demand for natural gas by EU countries in the winter of 2023 to save and increase energy efficiency. The main principles of regulation of the global energy market should be continuity of supplies and purchases of energy products of traditional and non-traditional origin; avoidance and prevention of threats to extraction, storage, and transfer of energy carriers; achieving a balance between the interested parties of this market and ensuring its competitiveness; ensuring rational, ecologically clean and safe energy consumption. Keywords: energy market, global energy, energy market formation, energy market regulation, alternative energy sources.
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