Development capacity and perspectives of the renewable energy in the Carpathian region of Ukraine

Economic Annals-ХХI: Volume 168, Issue 11-12, Pages: 73-77

Citation information:
Kravtsiv, V., Zhuk, P., & Bashynska, Yu. (2017). Development capacity and perspectives of the renewable energy in the Carpathian region of Ukraine. Economic Annals-XXI, 168(11-12), 73-77. doi: https://doi.org/10.21003/ea.V168-15

Vasyl Kravtsiv
D.Sc. (Economics),
Professor,
Director, State Institution «Institute of Regional Research named after M. I. Dolishniy of the National Academy of Sciences of Ukraine»
4 Kozelnytska Str., Lviv, 79026, Ukraine
kravciv@ukr.net
ORCID ID: http://orcid.org/0000-0002-5618-0392

Petro Zhuk
PhD (Economics),
Senior Researcher,
State Institution «Institute of Regional Research named after M. I. Dolishniy of the National Academy of Sciences of Ukraine»
4 Kozelnytska Str., Lviv, 79026, Ukraine
pzhuk@ukr.net
ORCID ID: http://orcid.org/0000-0003-4895-7752

Yuliya Bashynska
PhD (Economics),
Junior Researcher,
State Institution «Institute of Regional Research named after M. I. Dolishniy of the National Academy of Sciences of Ukraine»
4 Kozelnytska Str., Lviv, 79026, Ukraine
yu.bashynska@ukr.net
ORCID ID: https://orcid.org/0000-0002-2457-4135

Development capacity and perspectives of the renewable energy in the Carpathian region of Ukraine

Abstract. The Carpathian region of Ukraine is characterised by high potential of renewable energy, in particular relating to small hydropower and geothermal energy in Ukraine. The technically feasible capacity of renewable energy of the region is 10.4% of the total capacity of Ukraine. According to the Ukraine – European Union Association Agreement, Ukraine is obliged to develop renewable energy and stimulate its growth through legislative, financial and institutional mechanisms. Therefore, it is important to use the capacity of the renewable energy sources in all regions of Ukraine. The purpose of the research is to reveal the possibilities of renewable energy development on the basis of determination of the level, prospects and tools to enhance the use of renewable energy sources in the Carpathian region of Ukraine. Results. It has been established that the Carpathian region is characterised by different levels of exploitation of renewable energy by areas and sources. In general, the share of renewable energy used in the region is low, with the exception of wood biomass, which is somewhat higher. The perspectives for increasing of the industrial energy production in the region should be based on the use of wind, solar, geothermal energy, mainly using existing oil and gas wells available in the region, and small hydropower in compliance with environmental requirements. It has been determined that the renewable energy in the Carpathian region of Ukraine grows mostly at the expense of private investments and requires incentives for its development at both the national and regional levels. Efficient use of the renewable energy in the region is impossible without a strategic approach. The structure, the objectives and the tasks of the regional renewable energy development strategies (RSDFE) are outlined in the article. Public-private partnership mechanisms, such as the energy cluster, green public procurement, auctions of projects for the construction of renewable energy objects, etc., are suggested. Conclusions. The conducted research has shown that the significant amount of unused renewable energy in the Carpathian region of Ukraine creates preconditions for active development of renewable energy, which may also become a new driver for regional development. At the same time, capacity development requires additional organisational and economic measures to be taken by the regional authorities aimed at planning and supporting renewable energy by establishing cooperation with the business environment, facilitating the implementation of renewable energy investment projects.

Keywords: Renewable Energy; Carpathian Region; Capacity; Perspectives; Energy Cluster; Green Public Procurement

JEL Classіfіcatіon: Q20; Q28; Q48

DOI: https://doi.org/10.21003/ea.V168-15

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Received 15.11.2017